Question 1

Canadian Farm Machinery Ltd.entered into a contract with High Seas Transportation,which set out the responsibilities of High Seas in delivering 100 tractors to Argentine Produce Inc.Argentine has not yet paid for the tractors.High Seas must deliver the tractors only to whomever Canadian Farm Machinery has identified as the consignee in the contract.

Accepted Answer

The contract sets out the responsibility of High Seas in delivering the tractors to the consignee identified by Canadian Farm Machinery. Argentine Produce Inc. has not paid for the tractors yet, which is not relevant to the given statement.

Question 2

General Mfg.& Tool Co is a small company producing industrial machinery,including a special computer-controlled milling machine capable of producing ball-bearings that can meet the tiniest known industrial specifications.Many firms using this machine sell their output to defence contractors in the USA and Canada,but the output finds its way into a great many consumer goods as well,such as VCRs and automobiles.You are approached as a trade consultant by the president of GMT Co.,and asked to make recommendations about licensing the production of the machines in South-East Asia.Describe what steps GMT Co should take to determine the exportability of their licence,and describe the major advantages of licensing.Further describe for GMT Co.what should go into any good licensing agreement.

Accepted Answer

The answer of General Mfg.& Tool Co is a small...

Question 3

You are exporting your Canadian-made microchips to Romania for the first time.Describe the kinds of steps you can take to protect yourself from financial loss in case something happens to the shipments.The chips will be only partially paid for at the time they are shipped.

Accepted Answer

The answer of You are exporting your Canadian-made microchips to...

Question 4

Canadian Farm Machinery Ltd.entered into a contract with High Seas Transportation,which set out the responsibilities of High Seas in delivering 100 tractors to Argentine Produce Inc.Argentine has not yet paid for the tractors.If this contract,along with any other required documents,and a sight draft are sent to Argentine Produce's bank,the bill of lading will not be released to Argentine Produce until it pays Canadian Farm Machinery,thus protecting Canadian Farm Machinery's ownership rights if Argentine does not pay.

Accepted Answer

The arrangement described in the statement is known as a "documents against payment" (D/P) transaction. The bill of lading is withheld until the buyer pays for the goods, protecting the seller's ownership rights.

Question 5

Discuss your own interpretation of,response to and opinion about the extraterritorial application of a nation's laws.

Accepted Answer

The answer of Discuss your own interpretation of,response to and...

Question 6

Canadian Farm Machinery Ltd.entered into a contract with High Seas Transportation,which set out the responsibilities of High Seas in delivering 100 tractors to Argentine Produce Inc.Argentine has not yet paid for the tractors.This document is called a bill of lading.

Accepted Answer

A bill of lading is a legal document that outlines the terms and conditions of a contract between a shipper and a transportation company for the transportation of goods. It also serves as a receipt of shipment and a title of ownership of the goods. In this case, Canadian Farm Machinery Ltd. and High Seas Transportation have entered into a contract for the transportation of tractors, and the bill of lading would set out the responsibilities of High Seas in delivering the tractors to Argentine Produce Inc.

Question 7

A Canadian company has a patented product and seeks to have it produced overseas.It desires to minimize its investment abroad and its degree of exposure to foreign legislation.In this case,the far-and-away best choice would be to opt for a licensing arrangement.

Accepted Answer

Licensing arrangements allow the Canadian company to grant permission to a foreign company to produce its patented product in exchange for a royalty fee. This minimizes the Canadian company's investment abroad and its degree of exposure to foreign legislation, as the production and distribution of the product would be handled by the foreign company.

Question 8

The Export and Import Permits Act,in part,protects Canadian business from the "dumping" of foreign goods into Canada.

Accepted Answer

The answer of The Export and Import Permits Act,in part,protects...

Question 9

Canadian Farm Machinery Ltd.entered into a contract with High Seas Transportation,which set out the responsibilities of High Seas in delivering 100 tractors to Argentine Produce Inc.Argentine has not yet paid for the tractors.This document will set out information by which customs officials will be able to set the tariff classification and the applicable rate.

Accepted Answer

This document does not provide information for customs officials to set tariff classification and rates. It only mentions a contract between two parties and the payment status.

Question 10

The North American Free Trade Agreement is not a common market.

Accepted Answer

A common market involves the free movement of goods, services, capital, and labor between countries. While NAFTA eliminates many tariffs and other trade barriers between the US, Canada, and Mexico, it does not establish a common market like the European Union has.

Question 11

Seacoast Fisheries & Canning,of Signal Bay,Nova Scotia entered into a contract with SEAINTORG,a Russian government-owned foreign trade organization for marine products,to process and can Russian off-shore catch.Due to the movement of fish up the Canadian coast,SEAINTORG suspends the agreement,and has its catch canned by operations in Newfoundland.What alternatives are open to SFC other than Canadian courts,and how does the process operate?

Accepted Answer

The answer of Seacoast Fisheries & Canning,of Signal Bay,Nova Scotia...

Question 12

Hip Hip Hooray is a Vancouver-based children's clothing manufacturer whose unique designs,excellent quality and interesting materials have allowed them to sell across Canada with great success.They wish now to expand into foreign markets.The company was founded and is run by two mothers who could not find what they wanted for their own kids and so made it themselves,and they do not have a huge organization behind them.They want to make sure they can protect their reputation,but they are not sure whether their production arm can expand fast enough if their sales take off.Discuss with them the advantages and disadvantages of the various forms of international trading arrangements that they might use.

Accepted Answer

The answer of Hip Hip Hooray is a Vancouver-based children's...

Question 13

A Canadian company is considering negotiations to create a licensing agreement with a German company for the manufacture of patented Canadian products in Germany.What items do you feel are vital for the final agreement to contain in order that it can be functional at law and in practice?

Accepted Answer

The answer of A Canadian company is considering negotiations to...

Question 14

The system that assigns internationally recognized identification numbers to essentially all traded commodities so that nations can have a common basis for the identification of goods is called Canada's Customs Tariff.

Accepted Answer

The answer of The system that assigns internationally recognized identification...

Question 15

Canadian Farm Machinery Ltd.entered into a contract with High Seas Transportation,which set out the responsibilities of High Seas in delivering 100 tractors to Argentine Produce Inc.Argentine has not yet paid for the tractors.Canadian Farm Machinery's sale of the tractors to Argentine Produce is covered by the Sale of Goods Act.

Accepted Answer

The answer of Canadian Farm Machinery Ltd.entered into a contract...

Quiz 33: International Business Law