Chinese exporter exported 500M/T walnut to a Canadian importer on the basis of US$ 4,800 per...

Transcribed Image Text:

Chinese exporter exported 500M/T walnut to a Canadian importer on the basis of US$ 4,800 per M/T CIF Quebec. As it is a seasonal commodity, the importer required and both parties agreed to stipulate the following in the contract. L/C Issuing Date: to be issued by the end of September. Shipment: Not late than Oct.31, partial shipment and transshipment prohibited. Arrival Date: Not late than Nov.30. Otherwise, the buyer is entitled to refuse the goods. Terms of Payment: Draft at 90T/D under L/C. Due to the bad weather, the liner arrived at Quebec on Dec.5. Consequently, the importer refused to take the delivery of the cargo unless 20% discount of the total value of the goods was made for the loss incurred to the importer. After painful negotiations, the transaction came to end with the exporter's loss of $360,000 by the discount of 15% of the total value of the goods. Questions 1. What is the crux of the above case? 2. What are the main barriers to your understanding the case? The linguistic problems, or the cognitive problems as of the trade terminology like CIF, L/C, draft, and so on? Chinese exporter exported 500M/T walnut to a Canadian importer on the basis of US$ 4,800 per M/T CIF Quebec. As it is a seasonal commodity, the importer required and both parties agreed to stipulate the following in the contract. L/C Issuing Date: to be issued by the end of September. Shipment: Not late than Oct.31, partial shipment and transshipment prohibited. Arrival Date: Not late than Nov.30. Otherwise, the buyer is entitled to refuse the goods. Terms of Payment: Draft at 90T/D under L/C. Due to the bad weather, the liner arrived at Quebec on Dec.5. Consequently, the importer refused to take the delivery of the cargo unless 20% discount of the total value of the goods was made for the loss incurred to the importer. After painful negotiations, the transaction came to end with the exporter's loss of $360,000 by the discount of 15% of the total value of the goods. Questions 1. What is the crux of the above case? 2. What are the main barriers to your understanding the case? The linguistic problems, or the cognitive problems as of the trade terminology like CIF, L/C, draft, and so on?

Answer rating: 100% (QA)

1 What is the crux of the above case The crux of the case is that the buyer refused to take delivery ... View the full answer