Creusot-Loire, a French company, was the project engineer for the construction of ammonia plants in former Yugoslavia

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Creusot-Loire, a French company, was the project engineer for the construction of ammonia plants in former Yugoslavia and Syria. Creusot-Loire contracted with Coppus Engineering for the purchase of burners that were capable of continuous operation using heavy fuel oil with combustion air preheated to 260°C. Coppus warranted the burners for one year from the start-up of the plants but not exceeding three years from the date of shipment. The burners for the Yugoslavia plant were shipped immediately, but due to construction delays the plant was not to become operational until four years later. Two years after receiving the Yugoslav burners, Creusot-Loire discovered that similar burners at the Syria plant (and also at a plant in Sri Lanka) were experiencing serious operational difficulties. Creusot-Loire wrote to Coppus asking for proof that the burners for the Yugoslavia plant would meet contract specifications. Is Creusot- Loire’s request for assurances reasonable? Explain.

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The Legal And Ethical Environment Of Business

ISBN: 9781454893028

2nd Edition

Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow

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