INTERNATIONAL BUSINESS TRANSACTIONS

International Business Transactions

International Business Transactions

This paper is based on a fictional case study regarding international business transactions due for a purchase of a rich energy source. The case revolves around an agreement between the United States and Pandora. The parties involved in this case are RDA Corporation and Na'vi of Pandora.

Under the contractual theory, the duties of the sellers to consumers are contained implicitly or explicitly in the sales contract, which are the basis of the warranties addressed in this entry. Warranties were designed in part to remedy the imbalance of power between buyers and sellers in commercial transactions. Warranties also hoped to provide some stability, regularity, and reliability in contractual relationships. However, the imperfection inherent in sales contracts and their guarantees, the continuing unequal bargaining and evaluative power between buyers and sellers (especially where there is lack of contract privity), and the ability of sellers to waive such warranties raised serious reservations about the adequacy of the contractual theory, especially as to product safety. These concerns in consumer protection contributed to the law of strict liability in tort, which holds manufacturers responsible for almost any injury resulting from defects in their products, even if they used reasonable care in all aspects of the production and distribution process. This presumably motivates the manufacturer to ensure product safety and consumer protection in ways that warranty law is unable.

Q1: Delays in Shipment and Damages

In order for contracts to be valid and enforceable, agreements must generally represent a meeting of the minds and intent to be bound objectively manifested by parties with capacity to contract; be supported by valid consideration from each party to be bound; include essential terms that are sufficiently specific and definite to be enforced; be of sufficient form, such as in writing; and have lawful subject matter.

There must be at least two parties to contracts. Parties to contracts must have the capacity to form those agreements. Minors and incapacitated persons, such as those who are incapable of handling their affairs due to mental disorders, generally lack the capacity to enter into contracts. In the education context, the capacity of parties to enter into contracts might be most relevant with respect to agreements between an educational institution and a minor student.

Originally, only the direct buyer of a product could sue the manufacturer if a product was defective. If the product was sold to the injured consumer by anyone other than the manufacturer, then the manufacturer was not liable because it had no contract with the consumer. As the 20th century advanced, bringing ever more industrialization and faced with increasingly serious claims by consumers injured by factory-made products, courts began to stretch negligence theory to cover such situations, but this also proved unsatisfactory because it is very difficult for an injured consumer to obtain the information needed to show that the manufacturer thousands of miles away, and not the wholesaler, the retailer, or some other handler, was responsible for the injury-causing product ...