LAW FOR GLOBAL BUSINESSES, MBA 511

Use the I-R-A-C method, practiced in the Problem Set assignment to act as a judge to address one of the issues raised by the following fact patterns:

Design, Inc., in Newport, Rhode Island, entered into a contract with Buenavista, S.A. in Barcelona, Spain, to buy 1,000 sheets of stained glass. The contract contained a delivery clause that read "FOB Hasta Luego." The contract also stated that it was to be interpreted in accordance with Incoterms. While the glass was being loaded onto the ship (Hasta Luego), one of the crates slipped from the loading mechanism and landed in the water before it crossed the ship's rail. How should the court rule in the resulting lawsuit?

CamelBak imported back-mounted packs used for outdoor activities and designed to deliver "hands-free" water on-the-go. Each of the subject articles is a textile bag with padded shoulder straps and an insulated polyurethane reservoir, flexible tubing, a bite valve and a cargo compartment designed to hold food, clothing, and supplies. Each reservoir would hold 35 to 100 ounces of liquid, and each cargo compartment would hold 300 to 1,680 cubic inches, depending on the style of pack. U.S. Customs entered the articles under heading 4202 covering "backpacks" and subheading and item 4202.92.30 for "travel, sports and similar bags" at a rate of duty of 17.8 percent. CamelBak argued that the articles were "insulated food or beverage bags" under subheading 4202.92 dutiable at a rate of 7 percent. How should the court rule in the resulting lawsuit?

ESSAYS:

Use and refer to multiple sections of text, shown by reference to specific pages, to the situation. Each situation is worth 5 points, approximately twice the length of the weekly Discussion Board discussion. So, your responses should be detailed and complete. You have several hours to complete the exam. Take the time needed to be detailed and complete:

1. A friend is considering selling his company's products over the Internet. Explain to the friend the advantages and disadvantages of selling products over the Internet.

1. You are the CEO of a large publicly traded company. You are negotiating several contracts with foreign governments in Vietnam, India and Brazil to provide hardware and software to government agencies. What factors will you consider before concluding negotiations.