Question
Hi. For these questions I need full explainations. Thanks A bank in New York issued an L/C to a beneficiary (seller) in Spain at the
Hi. For these questions I need full explainations. Thanks
A bank in New York issued an L/C to a beneficiary (seller) in Spain at the request of the buyer covering the shipment of building products. When the seller presented the documents to the bank for payment, the bank declined to pay on the ground that it had no opportunity to test the quality of the products. The letter of credit did not require that a testing certificate from an independent laboratory accompany the documents.
Questions
- Was the bank justified in withholding payment?
- Does the buyer or the bank have the right to demand inspection of the quality of the merchandise?
- What is the importance of the independent principle for this case?
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Strategic Management and Competitive Advantage Concepts and Cases
Authors: Jay B. Barney, William Hesterly
5th edition
133129306, 0133127400, 9780133129304, 978-0133127409
