• ABC Games Ltd. v. Arcade Co.

ABC Games Ltd, a Spanish buyer and Arcade Co. an Australian seller concluded a contract for the sale of goods at Spain Port CIF terms. The Parties have not chosen the applicable law to govern their contract, so there is a conflict of law here. It is worth noting that Australia is party to the CISG 1980, whereas Spanish, is not.

Once the goods arrive in Spain, the Authorities seize them. It appears that ABC Games Ltd. contracted to buy gaming goods from Arcade Co. to supply local entertainment parks. Since gambling is illegal in Spain, the Authorities suspect that the goods are for gambling purposes, which they are not.

Arcade Co. argues that it has fulfilled its legal obligations to deliver the goods at the named port. As a seller, Arcade Co. feels it is not at fault for the goods being seized by the Spanish Authorities, so ABC Games Ltd. should bear the risk.

ABC Games Ltd. is questioning when property in the goods passed, as well as the validity of the contract. As a result, ABC Games Ltd. wants to start legal proceedings against Arcade Co.

• Questions:

1. Since there is a conflict of law between the abovementioned Parties, which law applies?

2. Can ABC Games Ltd. use the CISG 1980 to resolve the issues it raises above?

3. Do you think Arcade Co. should bear the risk for the goods?