Case Study:

Company $xYZ,$ based in the United States, specializes in exporting high$-$quality manufactured products to various countries around the world. Recently, they entered into a contract to supply a large quantity of their products to a buyer in a developing country. However, several risks have emerged during the course of this transaction.

Buyer's Insolvency$/$Credit Risk: The buyer has delayed payn$$nt for the goods, citing financial difficulties. They have also requested a credit extension, raising concerns about their ability to honor the full payment.

Buyer's Acceptance Risk: Upon delivery, the buyer raised quality concerns about the products, claiming they do not meet the agreed specifications. They have refused to accept the goods, creating challenges for Company $xYZ$ in finding an alternative buyer.

Legal Risk: Due to changes in import regulations in the buyer's country, Company $xYZ\text{'}$s products are now subject to additional documentation requirements. Failure to comply with these requirements could result in delays or non$-$payment for the goods.

Case Study Questions:

How can Company $YZ$ mitigate the risks associated with the buyer's insolvency$/$credit risk, particularly regarding the delayed payment and the request for a credit extension? What strategies can they employ to protect their interests and ensure they re'ceive payment for the goods?

In light of the buyer's acceptance risk and the quality concerns raised, what steps can Company $xYZ$ take to address the situation and resolve the issue with the buyer? How can they ensure that their products meet the agreed specifications and maintain their reputation for high$-$quality agricultural products?

Considering the legal risk posed by changes in import regulations in the buyer's country what measures should Company XYZ take to comply with the new documentation requirements? How can they minimize the impact of these changes on their business operations and ensure continued access to the market in the buyer's country?