For the questions below, assume that Kamaria is a member of the World Trade Organisation (WTO) and has ratified all relevant WTO agreements.

Furthermore, please assume that Kamaria has also ratified the following:

• The Amended Hague-Visby Rules:
• The Vienna Convention on Contracts for the International Sale of Goods (CISG)
• The UNCIRTAL Model Law on International Commercial Arbitration; and
• The UN Conference on International Commercial arbitration Convention on the Recognition
• and Enforcement of Foreign Arbitral Awards

Mary- Beth owns and operates a high-end furniture store in Sydney. She has recently decided to sell high end chrome furniture , which she imports from overseas.

Mary-Beth has been exchanging emails with Mr Iwento UTS, a cousin of the Kamarian President, to purchase a number of arm-chairs with a chrome frames and an exotic lama print fabric, which is unique to Kamaria. Mary- Beth has received an e-mail from Mr Iwento, in which he offers to sell 100 arm chairs at a price of $1,000 per chair FOB.

Mary-Beth, responds by e-mail advising that she is only prepared to pay $1,000 on the following terms:

• if the chairs are sent in two separate shipments one in December 2017 and the second in February 2018; and
• that the sale be CIP Sydney Port and not FOB.
• Mary-Beth, advises Mr Iwento UTS that she will pay a twenty five percent deposit into Mr Iwento
• UTS bank account, with the remaining seventy five percent to be paid on receipt of the goods.
• Mr Iwento UTS, emails Mary-Beth advising that he will accept the revised terms and the goods will be shipped in due course.

Two weeks later Mary-Beth receives a telephone call for an officer of the Australian Border Force, advising her that the consignment of 50 chairs is available for collection and that import duty of $100 per chair is to be paid prior to the release of the consignment. Mary -Beth is surprised to find that import duty is owing as she though this was the responsibility of the seller Mr Iwento UTS.

In February 2018, Mary-Beth receives an email for Mr Iwento UTS advising that the remaining chairs have been loaded onto the SS Golden Goose and should be available for collection in Sydney on Friday 13 February. Mr Iwento UTS also asks Mary-Beth to pay for the previous shipment forthwith.

The SS Golden Goose, sailed without adequate staff. The captain could not obtain adequate staff to crew the vessel as the vessel was known to be rusty and staff poorly paid. Regardless the captain decided to proceed shorthanded as the seas in the Pacific Ocean were generally calm at that time of year.

The SS Golden Goose ran aground off the Cook Islands two days into the voyage and all cargo was lost overboard. At the time the SS Golden Goose ran aground the seas were calm, the reason for the grounding was that the captain was sleeping at the time as the seas were calm and he had been unable to sleep since sailing two days previously.

Mr Iwento UTS, emailed Mary -Beth advising her of the fact that the ship has run aground and asking for payment of the purchase price. Mr Iwento UTS tells Mary -Beth that she should make an insurance claim on her insurer for the loss suffered when the goods went overboard.

Advise Mary-Beth on the following accept that a contract for the international sale of goods has been formed:

1. Which party is responsible for the payment of import duty at the Port of Sydney and why?
2. Which party will be responsible for the loss of the cargo at sea, explain your reasoning?
3. Are there any defences the carrier can rely on?
4. Pursuant to the contract which party was responsible for insuring the cargo?
5. Which party will bear the cost of the loss of cargo, given the failure of either party to insure the cargo?