Mr. Leiber will be eligible to claim $1,000.00 for each of those pieces as the difference between the contract price and the actual current price is approximately a difference of $1,000.00. If however, that price changes during the course of arbitration the difference in price should be changed in order to reflect that difference. Further according to article 50, should Satel have to ultimately pay for the 30 non-counterfeit pieces, because they are defective, Satel is able to lower the price per unit of the pieces in order to reflect their current value as opposed to the value they would have if they were functional.
Elcom is protected as a result of the method of delivery against damages which occurred in transit. According to article 66 and 67 section 1 the thirty components which were damaged as a result of the car accident ultimately must be paid for as Satel had assumed the risk for those pieces and are this liable for the full price of them despite the fact that they were defective upon receipt. These two articles do not however mitigate Satel's ability to seek remedies as a result of the other breaches of contract specifically the 30 counterfeit and defective components. Article 70 protects the buyer's right to seek remuneration even if there may have been additional ex post facto circumstances which compromised potentially correct components.
One complicating factor in the matter of acquiring remuneration is the seeming contradiction of articles 86 and article 82 section 1. These articles govern the circumstances under which the parties are able to suspend refund and final payment respectively. According to article 82, Elcom is entitled to withhold restitution until such time as the delivered goods are returned to them in the same condition that they were received. This is excepting any damage done to pieces as a result of testing. However, should Satel have damaged the components in any way prior to their return then Elcom would potentially have grounds to refuse refund of the money outlaid initially. According to article 86 section 1 though, Satel may if they so choose keep the goods until they have received restitution. This is an issue which will be addressed in the letter to Mr. Leiber from Elcom. It is suggested that a documentary credit be opened in which the $100,000.00 will be held until the goods have reached the Elcom facility. Once the goods have been confirmed, then the $100,000.00 would be released.
Ultimately Satel is entitled to damages equal to their losses including potential or projected profit. Article 74 clearly states that in the instance of a breach of contract, though the sum claimed cannot be beyond that amount which the individual could have foreseen being lost as a result of their breach, in the event of a breach the party which failed to complete their obligations is the party liable for the losses incurred by the other party. Further Satel according to article 84 section one is entitled to claim not only the $100,000.00 back but also interest on that amount for the entire period of time which Elcom has held that money.
Given the clear culpability of Elcom, and the potential additional criminal charges which H.S. Semiconductor Corporation could bring for trademark infringement as well as patent infringement it is likely that Elcom will ultimately not prevail in any court of law. To conclude, Elcom will likely have to pay Satel the $100,000.00 plus interest as well as the $260,000.00 minimum. Though it was initially stipulated in the contract that Elcom would only be liable in total for 20% of the initial purchase cost, should Satel void the contract then that obligation is no longer in effect and Satel will be able to bring the full extend of charges to bear on Mr. Lewis and Elcom.
Response Letter to Satel
Some type Government involvement and regulation, Nguyen (2009) asserts, proves critical to helping ensure the private sector r thrives. Many of world's leading economies concur that Governments must be involved to best manage their country's economy. Control, however, needs to extend beyond the control and regulation of the private sector per se. For the country's overall development, the better process includes the synergies of both private and public sectors being
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense
Article 60 of the Patent Law and Article 25 of the Anti-Unfair Competition Law holds not specific provision however, Article 118 of the General Principles of Civil Law provides that the plaintiff possess right to have ill effects of infringement eliminated. This is also including disclosure of third-party infringers. 48: Indemnification of the defendant in relation to the Courts holding of the power to order that damages be paid by
China's Intellectual Property Rights: Current Issues, Strategic Considerations And Problem Solving In this paper, the focus is primarily on the Intellectual Property Rights (IPR) that are given to individuals within the Republic of China. The paper starts off by defining IPR and the different ways that IPR is provided like copyright infringement. The paper them moves on to define IPR and its progression in China through the imperialistic years, the era
Significance of the Study This study is significant because it sheds light on a very important contributor to local and international trade. Trade fairs have a long history in providing a meeting place for buyers and sellers. They are an important channel of communication for B2B buyers and sellers. This is a significant area for study because there are limited channels of communication between B2B buyers and sellers. The previous sections
International Business 5 Pertinent Topics The Cultural Effect on International Business Description Political Issues Affecting International Business Description Regional Economic Integration AND INTERNATIONAL Business Description Impact of Exchange Rates on International Business Description Corporate Strategy in International Business Description An Analysis of International Business Today No one can dispute the fact that the world economy is increasingly globalizing as we move into the 21st century. As this internationalization of business grows, there is an increasing challenge being faced to deal with cultural
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now