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Introduction of International Sales
In the present economy, there is constant increase in sales transaction among different countries which results in implying laws and act that support in managing the international sales transaction. Along with this, international sales law also focuses on governing or protecting the right of party from unethical sales practices performed by the other party. The present report focuses on the scenario of different companies operating in different region and has entered into the sales contract by reviewing the different provision.
Small Malt Ltd. Small retailer of Whiskey located in Ireland engages in online advertisement for selling Whisky. The advertisement was seen by Liquor Sales Co. located in California contacted the Small Malt company for purchasing Irish whiskey over the three year period. The agreement among parties do not focuses on any of the provision on the choice of law or court jurisdiction.
(a) If Single Malt initiates litigation over its claim for damages stemming from the alleged repudiation, it will probably bring its suit in Ireland. What law should a court in Ireland apply to the transaction?
Accordant with the case scenario, Single Malt Ltd. do not sell Whiskey to Liquor Sales Co. as the company states that both the companies are not in the contract. The contract was repudiated earlier by Liquor Sales Co. therefore, If Single Malt initiates litigation over its claim for damages stemming from the alleged repudiation then it will probably bring its suit in Ireland. Hence, the Ireland law would be applicable within the transaction.
The Irish law indicates that Irish retailers those who are interested in selling the goods and products outside the national market then the company would attain contract law obstacles. Therefore, it is also required by the company to comply or abide by the laws and regulation related with the consumer protection (A Common Sales Law for Europe: Factsheet for Ireland, 2017). Along with this, if the business goes wrong in delivering the goods then the general rights do not exist in the Irish law. The small businesses that are exporting products and services in the new market must rely on the laws and activities of the other region as they are trading outside the European Union region (Spanogle and Winship, 2000). Moreover, there is also some relevant Irish legislation relating with serving of alcohol within the licensed premises or in the off-licenses region (Antràs, 2013). The Court in Ireland does not providing remedies for the other company as the contract do not include any provision related with court jurisdiction.
(b) If Liquor Sales brings suit based on its claim of contract breach, it will probably file the suit in southern California. What law should a court in California apply to the transaction?
On the other hand, in the situation if Liquor Sales brings suit based on its claim of contract breach then it will probably file the suit in southern California. Therefore, in this situation law within California would be applied within the transaction. Accordant with the legal terms and provision of the contract, it has been stated that both the parties has been entered into the contract for the three year but the Single Malt company was unable to deliver whiskey to the other party therefore, in such situation the company is liable to pay for the damage.
Within California The Uniform Commercial Code that is UCC regulates the contracts that are related with the sales of goods in California. Moreover, it has been also assessed that company must engage in proper formulation of the contract so that they may not perform the unwanted or improper activities related with sales of products (Azhar, 2017). The California region also focuses on protecting the company of their region from the other region countries so that it may easily protect their activities. In addition to this, California sales tax also impose certain taxable amount on the other party so that buyers and sellers jointly liable in performing the effective practices.