BUS706: International Business Law and Ethics- Tony Stork Case Study- Business Law Assignment Help

Internal Code: 1HFJI

Business Law Assignment Help:

Task: This is the third and final assessment for BUS706: International Business Law and Ethics. This assignment requires you to use the knowledge you have acquired this semester to answer a variety of different legal questions.

• Ensure you follow the IRAC structure when you are addressing a hypothetical scenario. Explain the issue being considered, detail the relevant rules (the laws and principles), apply the rules to the factual scenario, and conclude what the outcome is for the issue based on the law and its application.
• Cite all sources used in writing this assignment. This includes referencing the relevant sources of law, any books, journals, websites or any other resource used. You must use the Harvard referencing style – see the Harvard Referencing Guide for more information.
• This is an individual assignment. Do not work with classmates to answer these questions. Your responses are checked for plagiarism at submission, including any similarities to the assignments submitted by fellow students. If you require more information on plagiarism or collusion, please visit the USC Academic Integrity webpage and the Academic Integrity Policy.
• Proofread your responses. Remember: if you cannot understand your answer, the marker probably won’t be able to either.

PART 1  Tony Stork is an American inventor and entrepreneur dedicated to improving sustainable agriculture. He has recently developed the CarbonBuster 500 – a large device which captures methane from the air and transforms it into food for animals. It is a truly miraculous product and is the first of its kind in the world. It is designed to be installed alongside paddocks of grazing animals and is powered by solar energy. Tony recently showcased the CarbonBuster 500 at a major international agriculture expo and was overwhelmed by interest from suppliers in Europe, South Africa, China and the United States. There is clearly an eager market for this product. Tony, however, has concerns regarding company structures, intellectual property, environmental regulation and international trade.

1. Tony has decided to create a corporation to manage his legal and commercial interests in the product. How will this be of benefit when trading the product internationally?
2. What international and regional organisations could Tony engage with for advice on his concerns here? Note their functions and how they could be of assistance.
3. Tony hopes to export the equipment he has designed – a 2,000 kg, 12m³ device which is installed near a paddock. He wants to sell the product directly from Australia and transport it to international buyers. Tony is concerned about minimising the risk and expense when transporting the goods to buyers.

Tony is drafting a standard contract of sale he will use when selling the CarbonBuster 500 (subject to agreement with purchasers). Using the Incoterm Rules 2010, advise Tony which incoterm would be most appropriate for his circumstances and how this can be included into the contract of sale. PART 2 FutureDesign Pty Ltd (FD) produces and sells a range of office furniture and security equipment.Based in Singapore,FD is launching a warehouse clearance to clear stock in preparation for the approaching new financial year. FD is an innovative company. The business processes most orders online – sales personnel interact with clients though the FD website and via email. FD has also developed “JARVIS”, an innovative automated messaging system built into their website to answer client questions and process orders via a text-based interface.

1. Britneyworks for Moscow House, an expanding hostel based in the Moscow, Russia. Britney is hoping to purchase a new”MXR8v2 Safe” for the company from FD. Britney uses the “JARVIS” system to make an order on 20November. Unfortunately, Britney accidentally types “MRX8 v2 Safe” – an electronic safe which doesn’t meet her business needs. JARVIS automatically processes the order and charges the funds to Rebecca’s account.

Britney does not realise she has made a typographical error until the following morning. She emails EP to amend the order on 22November. EP responds on 3December, denying Britney the opportunity to amend her order as they ‘only just read her email’. IT professionals have confirmed Britney’s email was sent correctly. Consider the application of the UN Convention on the Use of Electronic Communications in International Contracts.

• Has a valid contract been created in these circumstances?
• Does Britney have the right to amend the typographical error?
• Would the outcome of the scenario differ if Britney had realised her typographical error following delivery of the “MRX8 v2 Safe”?
• Applying the rules of this convention, when was Britney’s email to FD sent and received?

2. Brian contacts FD to purchase adjustable desks for use in his organisation’s research facilities in Tokyo,Japanese headquarters. Brianuses an electronic signature to sign the contract of sale with FD. The form of electronic signature used by Brian is simply an image of his handwritten signature. The contract of sale document can be freely edited – it does not track or record changes which have been made to it.

• Is the electronic signature used by Brian valid in accordance with the UNCITRAL Model Law on Electronic Signatures? Assume this model law governs this agreement. (8 marks)
• What obligations are placed upon FD by the UNCITRAL Model Law on Electronic Signatures in relying upon Brian’s signature? (2 marks)

PART 3 Xtreme Yachts Pty Ltd (Xtreme Yachts), a Hong Kong manufacturer of specialised nautical vessels, is contracted by Whale Watching Canada (WWC) to provide 10 glass-bottomed boats. These boats will be added to a fleet of eco-tourist ships used by WWC on wildlife tours around Victoria, Canada. Despite both parties trying their best to meet their contractual obligations, the contract becomes disputed. WWC claims the boats do not meet the standards promised by Xtreme Yacht during negotiations and has refused to make payment. WWC argues the boats do not feature enough space to safely hold 50 passengers, as was described in the contract of sale. The sales contract requires parties to enter into arbitration proceedings if there is a contractual dispute. On 1 April, the parties enter into an arbitration agreement. The agreement states:

• Disputes between parties are to be resolved by arbitration as administered by the Hong Kong Arbitration Association.
• The dispute shall be overseen by five arbitrators from neutral jurisdictions (not from Hong Kong or Canada). The arbitrators shall be selected and approved by the Hong Kong Arbitration Association.
• The dispute shall be heard at the earliest possible time in Hong Kong.

The New York Arbitration Association informs the parties the next available time is 17May. Both parties agree to attend at that time. Due to a series of transportation issues, WWC is unable to attend the arbitration proceedings and is unrepresented. Scheduling conflicts at the Hong Kong Arbitration Association mean that four arbitrators decide on the matter. The arbitration finds in favour of Xtreme Yachts and orders WWC to pay the funds promised under the contract of sale. WWC disagrees with the decision and has an appeal pending in the Hong Konglegal system.

1. Xtreme Yachtsis applying to a New York Convention signatory court to enforce the arbitration agreement. Consider the application of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and detail the articles and arguments WWC may use to challenge the enforcement of the arbitration decision.
2. How would the arbitration proceedings have differed if the parties had utilised the ICC International Court of Arbitration?
3. How does arbitration differ from mediation or negotiation?
4. Compare arbitration and litigation. What are the benefits and difficulties which arise from these proceedings?