Question
Your company, Acme Widgets, sells its widgets worldwide. Acme has a contract for 250,000 widgets to be shipped to the Czech Republic. The price stated
Your company, Acme Widgets, sells its widgets worldwide. Acme has a contract for 250,000 widgets to be shipped to the Czech Republic. The price stated in the offer and acceptance is $1 per widget, C.I.F. Prague. During the production of the widgets, the price of one component increases 250 percent due to a shortage. In addition, these widgets are due for shipment on June 15 and arrival in Prague no later than July 1. On June 15, a stevedores strike begins, which lasts for 60 days. Are either or both of these factorsthe material price increase and the stevedores strikean excuse for Acmes nonperformance? What legal theory might Acme use under U.S. common law as an excuse? Under the CISG?
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