The Benny McPug Mainframe Computer Company of Smallville, U.S.A. enters into a contract to sell 2,000 of its computers to The Big Cheese Computer Importers of the Netherlands. The contract provided that the costs included delivery by McPug to "The Big Cheese" in the Netherlands by July 1. During the production of the computers the cost of the computer chips went up 300 percent. On June 15 the stevedores went on strike for sixty days. Does McPug have any excuses for nonperformance? What legal defenses may McPug try under U.S. law and under the CISG?

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The Answer of The Benny McPug Mainframe Computer Company of Smallville, U.S.A. enters into a contract to sell 2,000 of its computers to The Big Cheese Computer Importers of the Netherlands. The contract provided that the costs included delivery by McPug to "The Big Cheese" in the Netherlands by July 1. During the production of the computers the cost of the computer chips went up 300 percent. On June 15 the stevedores went on strike for sixty days. Does McPug have any excuses for nonperformance? What legal defenses may McPug try under U.S. law and under the CISG?