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BUS706: International Business Law & Ethics- Prime Productions Pty Ltd Case Study- Case Study Assignment Help
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Task: Prime Productions Pty Ltd (“Prime”) is a movie production company located on the Gold Coast, Queensland, Australia. Following a time of significant growth in the local film industry, Prime decides to modernise its equipment to better meet the requirements of modern cinema. Prime are particularly interested in filming in 3D. With updated equipment, Prime believes it will be able to attract more international work to the region. Prime Productions Chief Financial Officer, Mark Ratney, is tasked with procuring this equipment. He is looking to purchase:
- 7 X3 Cameras – a type of camera which is designed to film in three-dimensions (3D);
- 20 HD Microphones – the latest in sound recording technology, and
- 4 Camera Mounts – a platform and rig which a camera operator and camera are attached to. This allows for the camera to move while filming.
Using his industry contacts, Mark is referred to Film Frenzy Pty Ltd (“Film Frenzy”), a US-based supplier of equipment to many well-known movie companies. Mark contacts Felicia Maw, a Sales Associate at Film Frenzy, to organise the purchase. Below is Mark’s email to Felicia:
| From: Mark Ratney (mrat@prime.com.au) To: Felicia Maw (fmaw@frenzy.com) Subject: Quotation request – 3D Film Equipment Date: 10 December 2017 Dear Felicia, I would like to request a quotation for the purchase of the following equipment for our production company. We are modernising our studio and wish to move into the production of 3D films, so any advice in this regard would be appreciated. We wish to purchase: · 7 X3 Cameras · 20 HD Microphones, and · 4 Camera Mounts. I look forward to your response. Regards, Mark Ratney Chief Financial Officer Prime Productions Pty Ltd |
Several days later Mark receives a call from Felicia. Felicia confirms Frenzy has stock available and will be able to provide the equipment for $60,000US. Mark is very pleased with this price. Quotes he had received from other suppliers were more than $120,000US. Felicia follows-up the call with an email:
| From: Felicia Maw (fmaw@frenzy.com) To: Mark Ratney (mrat@prime.com.au) Subject: Confirmation – Prime Production Order Date: 17 December 2017 Hi Mark, Good to chat with you earlier. We here at Frenzy are glad to have reached an agreement to provide the following equipment to your studio: · 7 X3 Cameras · 20 HD Microphones, and · 4 Camera Mounts. The price of this sale is $60,000US. Please pay $30,000US to confirm your order. Further payment must be made on delivery. Payment details are attached. This delivery will be DAT at the Port of Brisbane as per the Incoterm Rules 2010. Is that fine with you? Regards, Felicia Maw Sales Association Film Frenzy Pty Ltd |
Mark makes the $30,000US payment. He has no idea what “DAT” means, but responds to the email accepting it anyway. On 12 February 2018, Mark receives a call from the Port of Brisbane advising there is a container of packages for collection. Mark is confused as to why the goods were not delivered directly to Prime Production’s Gold Coast offices. He organises a company to delivery the goods from the Port of Brisbane to the Prime Production studios. After opening the products, it becomes clear there are a number of issues with the equipment:
- The 3X Cameras provided by Frenzy are not the latest version. The cameras cannot record film in 3D.
- The HD Microphones have been damaged during transit. It appears the box containing the microphones has been covered in liquid on the ship. The microphones are not operational.
- The Camera Mounts also require some work – several of the screws on the mechanisms are unsecure and require tightening.
Mark is very frustrated. He contacts Felicia and explains the situation. Felicia tells Mark that Frenzy has met their obligations and delivered the goods as described. Mark refuses to pay the outstanding $30,000US. Mark is also frustrated the goods were not delivered directly to the Prime Productions studios. He accuses Felicia of breaching the contract. Considering the operation of international sales law, advise Mark:
- Does the Convention on Contracts for the International Sale of Goods (“CISG”) govern this agreement? Why/Why not?
- Unknown to Mark, Film Frenzy Pty Ltd is a subsidiary of Movie Equipment Pty Ltd, a UK production company. Would the CISG apply if Mark had contracted directly with Movie Equipment Pty Ltd?
- What is “DAT”? How does “DAT” apply to thisagreement?
- Have Mark and Feliciaentered into a contract? Outline the required elements of a contract under the CISG.
- Mark has accused Film Frenzy of breaching the contract. Consider each of the following issues and determine whether Film Frenzy breached their obligations:
- The 3X Cameras
- The HD Microphones
- The Camera Mounts
- Deliveryof the goods
- What remedies are available to Prime Productions? Which remedies would be most appropriate in this scenario?
- Mark doesn’t understand why he needs to consider international law. He has some training in Australian Consumer Law and UK Sale of Goods legislation.How could Mark have ensured the contract was governed by laws he was familiar with?
- What “soft law” measures could have been incorporated into a written contract to govern this agreement?
- Some of the goods were damaged during transit. How could Mark have eliminated this risk from the agreement?