IBT - fIBT I Risks in any transaction a Payment(full and timely b Defective goods(non-conforming goods II If there is distance harder to deal w

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fIBT I. Risks in any transaction a. Payment (full and timely) b. Defective goods (non-conforming goods) II. If there is distance harder to deal w/ risks a. Can check carfax on a car to check non-conforming goods b. Mini-escrows like paypal or something for payment c. If both parties in US, there are rules and customs that protect buyer and seller III. If in different countries harder still. IV. P 56-58 forms for the transaction a. Letter of inquiry not an offer b/c no promise to purchase only asking about price. b. Why buyer asks for shiping alternatives from seller ? b.i. Seller is in country where goods are shipped seller has better access to shipping companies b.ii. Seller sells goods all the time…buyer may only buy seasonally so seller may be in better position c. Why is It usually policy of the seller to require an order acknowledgment in any sales transaction? How does this policy protect seller? c.i. The parties are strangers one way to minimize later misunderstanding is to put things in writing early on. d. When is a contract formed b/t parties thru offer and acceptance? d.i. Invoice is offer purchase order is acceptance e. What is significance of adding delivery date in purchase order when it is not in the invoice? Is this a new offer? Or is it acceptance of e.i. UCC 2-201 says additional terms are new offer to extent they don’t contradict w/ original offer/acceptance. But this is a US law, so unclar if it applies f. What does buyer do if goods are non-conforming? If they sue where do they sue? f.i. Unclear on these documents…buyer’s domicile? Delivery location? Inspection point? Seller’s domicile? g. Bill of lading – doc transferring title of goods V. Independence principal LOC a. Letter of credit agreement is separate and apart form sales agreement b. Term of sales agreement don’t change the terms of the LOC don’t control it c. Makes sure that banks not held liable to buyer or seller d. LOC’s require strict compliance VI. READ 134-142 in text for tomorrow VII. Contract of afreightment a. Fancy way of saying contract for transportation of goods to a named destination b. Pick up and deliver goods c. The carrier is a party to the contract. d. Seller arranges transpo and charges buyer seller is in best position to arrange see above.
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e. 4 modes of transport e.i. Air e.ii. Rail e.iii. Road e.iv. Water f. When selling form one country to another, often uses different modes of transport eg rail water road (multimodal transport) g. Transport by ship is most frequently used mode of transport g.i. 2 types common carriage and private carriage g.ii. At common law distinction b/t common and private w/ regard to duty of care. g.ii.1. Private carriers were bailees “ordinary care” only loss or damage if proximately caused by breach of term of afreigthment g.ii.2. Common carriers were insurers higher duty than ordinary care “any damage or loss” that occurs during transport with very narrow exceptions (acts of god, act of public enemy—pirates or the
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This note was uploaded on 10/18/2011 for the course LAW 700 taught by Professor Kim during the Spring '10 term at USC.

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IBT - fIBT I Risks in any transaction a Payment(full and timely b Defective goods(non-conforming goods II If there is distance harder to deal w

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