New York Merchandising Company (NYMCO) imported goods produced by C- ART in Hong Kong. The goods...

 

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New York Merchandising Company (NYMCO) imported goods produced by C- ART in Hong Kong. The goods were shipped on the Hong Kong Island Lines (carrier). The parties prior course of dealings had been for the carrier to release the goods to NYMCO on its presentation of a "bank guarantee." These bank guarantees released the carrier from liability for any misdelivery. On this occasion, however, the carrier released the goods upon NYMC's corporate guarantee of payment. Soon thereafter, NYMCO filed for bankruptcy. C-ART sued the carrier to recover the money owed for the goods. The carrier argued that it was not liable for misdelivery because NYMCO had good title to the goods from the time they were shipped in Hong Kong. Do you agree with this argument? The carrier also claims that the bills of lading are not valid because the importer NYMCO was insolvent. What is wrong with this argument? New York Merchandising Company (NYMCO) imported goods produced by C- ART in Hong Kong. The goods were shipped on the Hong Kong Island Lines (carrier). The parties prior course of dealings had been for the carrier to release the goods to NYMCO on its presentation of a "bank guarantee." These bank guarantees released the carrier from liability for any misdelivery. On this occasion, however, the carrier released the goods upon NYMC's corporate guarantee of payment. Soon thereafter, NYMCO filed for bankruptcy. C-ART sued the carrier to recover the money owed for the goods. The carrier argued that it was not liable for misdelivery because NYMCO had good title to the goods from the time they were shipped in Hong Kong. Do you agree with this argument? The carrier also claims that the bills of lading are not valid because the importer NYMCO was insolvent. What is wrong with this argument?

Answer rating: 100% (QA)

We are not agree because with this argument In this case it is undisputed that the terms of the bill ... View the full answer