In May 2005, Cedar Petrochemicals, Inc., a New Yorkbased petrochemicals trader, entered into a contract with Dongbu Hannong Chemical Co., Ltd., a South Korean corporation, whereby the latter agreed to deliver a certain quantity of liquid phenol to a ship called the Bow Flora in the port of Ulsan, South Korea, at which point Cedar would take possession. The terms and conditions of the contract provided that "Incoterms 2000 as amended to date" would govern and contained the delivery term "FOB Ulsan Anchorage, Korea." The contract also provided that the phenol meet certain specifications with respect to color.
The phenol was subsequently loaded onto the Green Pioneer, a ship chartered by Dongbu, in the port of Yosu, South Korea for shipment to Ulsan where it was transferred to Cedar's vessel, the Bow Flora.
Inspections in Ulsan determined that the phenol complied with contract specifications and, as a result, Cedar tendered payment to Dongbu. However, subsequent tests performed when the Bow Flora arrived in Rotterdam, the Netherlands, in July 2005 revealed that the phenol no longer conformed to contract specifications.
Retesting in South Korea discovered the presence of particulate matter in the Green Pioneer which may have tainted a portion of the phenol when it was transferred to the Bow Flora.
What provisions could Dongbu have included in the contract with Cedar if it intended to avoid the application of the CISG?