Question
MAHO is the American subsidiary of a German manufacturer of precision industrial milling and boring machines. MAHO contracted through a distributor, Jeffreys Engineering and Equipment
MAHO is the American subsidiary of a German manufacturer of precision industrial milling and boring machines. MAHO contracted through a distributor, Jeffreys Engineering and Equipment Co. ("Jeffreys"), to sell Windward a MAHO 700s machine that Windward required for a new operation in Singapore. Windward agreed to pay Jeffreys $263,573. Because the machine was scheduled for exhibition at a trade show in Los Angeles, the agreement among MAHO, Jeffreys, and Windward called for the machine to be purchased by Windward after exhibition at the trade show. MAHO undertook, at its expense, to provide basic "seaworthy preparation and crating" for the machine. MAHO engaged Orange County Crating ("Orange") to crate the machine. The machine was to be transferred "FOB Los Angeles." Travelers insured Windward against the risk of damage to the machine under a cargo policy. When the machine arrived in Singapore on June 13, 1988, it was opened in the presence of William M. Wood, Jr., Windward's president, and Volker Huettel, MAHO's service engineer in Singapore. The machine was found to be damaged by rust. Huettel reported that the usual airtight plastic bag was cut open, no moisture absorbing bags were inside the crate, water drained out while the crate was being opened, and the blank parts of the machine had not been greased or oiled. Windward demanded that the machine had to be returned to Germany to be rebuilt because the work could not be done in Singapore. Travelers refused to cover the loss. What remedies are available here?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started