In November 2011 Ai Lin sent her regular monthly order for 100 kg of Kangaroo meat and 100 whole chilled barramundi from Tony. Tony sent back a quote of A$10 per kilogram for the Kangaroo and A$10 per barramundi assuming delivery on an FOB Brisbane basis. For delivery CIF Hong Kong, the price would rise to A$15 per kilogram and A$15 per whole fish for kangaroo meat and Barramundi respectively.
Ai Lin responded that she would like delivery to be FOB Sydney on the SS Long March, due to arrive in Sydney on 5th December and due to depart Sydney on 8th December. Tony advised that he would deliver as requested, but that the price would rise by A $2 per kilogram/ whole fish to help him cover the cost of transport by road from Queensland to Sydney. There was no reply from Ai Lin.
The SS Long March departed Sydney on time on 8th December and arrived in Hong Kong ten days later on 18th December. Ai Lin has accepted two bills of lading showing delivery in Sydney of kangaroo meat and barramundi respectively. She has paid Tony a sum of A$2,000.
When Ai Lin takes delivery of the container with the kangaroo meat in side, she finds that the meat has spoiled from heat during the voyage, despite being carried in a refrigerated container. It seems that the electrical connections that provide energy for refrigerating the container during the ocean voyage have broken. While it cannot be established for certain at what stage during the voyage the electrical fault occurred, the evidence shows that the carrier failed to establish a system of electrical checking and safety review as suggested in best practice guidelines. If the carrier had employed an electrician to conduct regular checks of all refrigerated containers and other electrical equipment on the ship, the fault could have been rectified in time to save the meat from spoiling.
Ai Lin wants to know if she can refuse to take delivery of the kangaroo meat and demand her money back from Tony. Tony is demanding that she pay him an extra $200 for the kangaroo meat, to cover his extra delivery costs ex-Sydney.
Advise Ai Lin. (1,000 words, 15 Marks).
So far as the barramundi is concerned, the container with the barramundi was not sealed before delivery, providing an opportunity for the truck driver responsible for transporting the fish from Queensland to the port in Sydney an opportunity to sample the fish during the journey. Twenty barramundi are missing by the time the container reaches Hong Kong. The bill of lading indicates a shipper’s load and count of 100 barramundi when loaded in Sydney, but only 80 are counted when the container is opened in Hong Kong. Moreover, Ai Lin is disappointed by the fact that the fish is not as fresh as previous deliveries from Tony. Evidence suggests that the refrigerated container with the fish worked perfectly during the ocean voyage, so that the lack of freshness appears to be because of the extra road journey in Australia or because the fish was not fresh when it left Tony’s farm to begin with.
Ai Lin wants to know if she can refuse delivery of the fish and get her money back. Tony is demanding an extra A$2 per barramundi to cover his extra delivery costs transporting the fish from Queensland to Sydney.
Advise Ai Lin. (1,000 words; 15 Marks).
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