Question
Two of the main goals of International Consumer Law is to set a global minimum consumer protection standard and to remove obstacles to cross-border trade.
Two of the main goals of International Consumer Law is to set a global minimum consumer protection standard and to remove obstacles to cross-border trade. The United Nations Guidelines on Consumer Protection (UNGCP) were promulgated to provide guidance as to the minimal standards of protection within the global market. The United Nations Conference for Trade and Development (UNCTAD) promotes those guidelines to member states. In addition to U.N. activity, the International Consumer Protection and Enforcement Network (ICPEN) was established in 1992 to promote international protection for consumers by creating a collaborative forum to address cross-border misconduct.
The UN Guidelines are designed with the intention of providing a inspirational model. Describe the fundamental principles upon which it is based. In addition, identify the long-term goals of the ICPEN in its effort to motivate cross-border traders to engage in acceptable conduct. Describe a couple of the mechanisms that the ICPEN use to encourage compliance
CFR Limited manufactures and sells high definition, photographic quality printers with an accompanying device which allows printing of 3D picture frames. An editing and design software is provided as an integral part of the printer. CFR also sells good quality photographic card for use with the printer. CFR has entered into a contract with POFA to supply the following:
12 printers - Available for delivery
5 frame printing devices - Would require 15 days to deliver
60,000 sheets of Photographic card - Available for delivery
A lump sum price of Rs. 13 million has been agreed between CFR and POFA for this contract. In the normal course of business, CFR does not sell the printer on a standalone basis, the framing device is an integral part of each sale. A special exception has been made for POFA. The combined package of the photographic printer and framing device usually sells for Rs. 900,000. The manufacturing cost of the printer and device are Rs. 500,000 and Rs. 200,000 respectively. Each sheet of photographic card costs Rs. 25 to manufacture and sells for Rs. 50 per sheet. Other photographic printers of almost similar specification are available in the market and sell for Rs. 800,000. There are no other framing devices available in the market, while sheets of photographic card are readily available from other suppliers.
Required: Apply the five-step revenue recognition process to this contract (assume a valid contract exists). Try to answer as comprehensively as possible with the given information
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