Bavaria-Edelweiss GmbH (a German company) decided to modernise its in-house gymnasium in an effort to attract more of its employees to use the facilities. It entered a contract with Aus-Trim Ltd of Perth for the purchase of ten exercise bicycles. The contract was concluded in Munich, Germany. It required the buyer to pay 20% of the purchase price prior to shipment of the equipment, and the remainder within sixty days of delivery. Soon after the bicycles were delivered, Bavaria-Edelweiss Co decided to give one of the exercise bikes to Hans Schneider, a valued employee who has always struggled to find time to exercise. When Hans used the bicycle at his home a bolt broke, causing Hans to fall and suffer a broken leg. Bavaria-Edelweiss now refuse to pay the remainder of the purchase price and they demand to be compensated for their employee's losses.

Please discuss each of the following issues separately:

(a) Bavaria-Edelweiss have since discovered that Aus-Trim Ltd of Perth is a subsidiary of Smart-Trim Co of Malaysia. Does the Vienna Sales Convention apply?

(b) Assuming that the parties to the contract have expressly excluded the application of the Vienna Sales Convention, which nation's law would be the relevant law?

(c) Assuming that the Vienna Sales Convention is the relevant law, is Aus-Trim Ltd liable for Hans Schneider's injuries?

(d) Would your answer to (a) or (c) above be different if Hans Schneider himself had purchased the defective exercise bike?

(e) Is Bavaria-Edelweiss liable to pay the remainder of the purchase price?

(f) Discuss possible remedies to the buyer and the seller under the provisions of the Vienna Sales Convention