Hi! Hope you are having a great day thanks for your help,

The follow questions are related to International Business Transactions and the Law in Business Law, and are for Australia law.

Below is what some of the assumptions for the questions would be.

For the questions below, assume that if relevant the parties are member of the World Trade Organisation (WTO) and have ratified all relevant WTO agreements. Furthermore, please assume that if relevant the parties have also ratified or apply the following:

the Amended Hague-Visby Rules;

The Vienna Convention on Contracts for the International Sale of Goods (CISG)

the UNCITRAL Model Law on International Commercial Arbitration;

The Uniform Customs and Practice for Commercial Documentary Credits (UCP 600); and

the UN Conference on International Commercial Arbitration Convention on the Recognition and Enforcement of Foreign Arbitral Awards;

Any help would be greatly appreciated on how I should go about answering these questions (as I'm pretty lost tbh). Thank you so much!

Q1 Brian and Michelle are the directors and shareholders of Young Cold Country Wines Pty Limited ("the Company"). Sophie is the Chief Financial Officer of the Company; she is also the chairperson of the Young Grape Growers Collective which is an industry body formed to lobby government and develop the wine industry in NSW. Sophie is concerned that white wine grown and bottled in Chile is being sold in Australia at a price less than the cost of producing white wine in Australia. The Australian white wine growers are seeing their market eroded by the importing and sale of the Chilean wine into the Australian market. The Young wine growing region only produces white wine.Sophie investigates wine growing in Chile and discovers the following: the cost of producing a bottle of wine in Chile is $5.00 higher than the cost of producing an equivalent bottle of similar wine in Australia, and further that the government of Chile is giving grape growers a subsidy of $200 per ton of grapes grown, in an attempt to accelerate economic recovery after COVID and to develop the export capacity of the wine industry in Chile.The Australian wine industry is regarded as one of the most efficient wine growing industries worldwide. Wines produced by the Company have won many gold medals at international wine shows.Australian wine importers have increased the amount of Chilean wine they are importing, Chilean wines now comprise 42% of white wine sold in Australia. The Company is unable to sell the wine they produce in the local Australian market.Sophie is concerned that the Young wine industry is being destroyed by the availability in the Australian market of the cheaper Chilean wine.

Advise Sophie whether the Australian government can take any action to prevent the importation of Chilean wine into Australia

Q2

Sophie, the Chief Financial Officer of Young Cold Country Wines Pty Limited ("the Company"), has been attempting to develop new export markets for the Company's wines. At a recent trade show in France, Sophie had a detailed conversation with Torben, a business man who imports and sells wine in Denmark.The Company and Torben enter into a contract for sale of 200 boxes of Young cold country wine each box of wine contains 24 bottles the selling price is per box $200 Australian. The contract price for the wine is valued at $40,000. Both Sophie and Torben anticipate that this sale will be the first of many contracts between them, they look forward to a long and fruitful business relationship.The parties agree that wine will be paid for by way of documentary letter of credit against the usual documents.Torben asks his bank, The Denmark Bank, to open an irrevocable letter of credit in favour of The Company.The Denmark Bank contracts with The Young Bank of Australia to both advise on the correctness of the documents and to honour the payment.Sophie enters into a contract with Wombat Freight Forwarders to pack and transport the wine. Unknown to Sophie, Wombat Freight Forwarders employees removed the wine from two of the boxes and replaced them with empty bottles which they packed and forwarded to Denmark.The carrier, Kangaroo Shipping Lines, issues a clean bill of lading. All other commercial documents are in order and in conformity with the documentary letter of credit.Prior to the ship carrying the wine docking in Gothenburg Harbour one of Torben's competitors imported 1000 boxes of Chilean wine in to Denmark. This had the effect of seriously reducing the potential profit Torben could make from the Australian wine. Torben advises Sophie that he is going to ask his bank to withdraw the documentary letter of credit added to which Sophie hears rumours at the Lamb's Tail Hotel that Wombat Freight Forwarders employees had a practice of stealing goods and replacing the stolen goods with rubbish.Sophie is very concerned and seeks your advice.

Advise Sophie on the legal position of all participants in a documentary letter of credit.

Specifically address the legal obligations of the issuing bank.

Can the issuing bank refuse payment based on the misconduct of Wombat Freight Forwarders?