Question and Case Problem

Please draft answers to number 1,3,5,7,&9. Answers should be prepared on a separate Word Document.

1. Two cases in this chapter, Transatlantic Financing and Bernina Distributors, involved very different facts but similar issues of law. What legal issues do they have in common? In each case there is some unexpected “supervening event” that interfered with one party’s ability to perform and with their expectations in the contract. In either case, did the nonperforming party have a legally recognized “excuse for nonperformance”? Why or why not? While you might have to wait until a later chapter for a full answer, how do you think parties to a contract might deal with these uncertainties in advance?

3. International business managers try to build trust with their foreign counterparts, whether it’s a customer, supplier, or partner. How would you suggest they do this? Why is trust important to the long-term relation- ship, and what might it mean to managing the risks of international business?

5. Plaintiff, a Swiss corporation, entered into contracts to purchase chicken from B.N.S. International Sales Corporation. Defendant was a New York corporation. The English language contracts called for the delivery of “chicken” of various weights. When the birds were shipped to Switzerland, the 2-lb. sizes were not young broiling chickens as the plaintiff had expected, but mature stewing chickens or fowl. The plaintiff protested, claiming that in German the term chicken referred to young broiling chickens. The question for the court was: What kind of chicken did the plaintiff order? Was it “broiling chicken,” as the plaintiff argued, or any chickens weighing 2 lbs., as the defendant argued? Frigaliment Importing Co., Ltd. v. B.N.S. International Sales Corp., 190 F. Supp. 116 (S.D.N.Y. 1960). What could the parties have done to avoid this misunder-standing?

7. What industries in your state are the leading exporters? Who are the leading export firms? What do you think is the impact of exports on your state’s economy? Where would you go for information? What role does your state government play in promoting exports?

9. There are many U.S. government programs to aid American firms in boosting exports. The International Trade Administration and its U.S. Commercial Service, as well as the Small Business Administration administer several of these programs. Undertake an Internet search of government resources for small- and medium-sized exporters. What services does the U.S. Commercial Service offer? What trade statistics are available? Country information? Foreign market information? Export counseling? Matchmaking and trade contact programs?

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