Albany College of Pharmacy Legal Environment of Business Law Paper

Assessment brief1) We-Assemble, a well-known manufacturer of high-end processors used in mobile
phones located in China, concluded a contract for the sale of 10,000 processors with
MobliesRus (a manufacturer of mobile phones based in France). The contract
stipulates FOB Shanghai (Incoterms 2010) and that delivery must be made on the 3rd
of July 2019.
During negotiations, MobilesRus had told We-Assemble that it had a very lucrative
contract for the sale of mobile phones with a particular company which could only be
fulfilled if the processors were delivered on time. MobilesRus however did not
mention the exact amount of profit it was going to make from the contract, which was
£30,000.
We-assemble was unable to produce the goods on time and as a result was only able
to make delivery on the 5th of July. On delivery MobilesRus discovered that the goods
did not conform to their description under the contract and had a market value of
£8000.
a) Does the CISG apply? Note: you may assume that under the conflict of law rules
of China, the contract is governed by the domestic law of China.
b) Assuming that the CISG applies and that MobilesRus paid £10,000 to
We-assemble for the processors, how much can the buyer recover in damages or
reduce the price by? You may assume that the market value of conforming
goods would be £12,000.
c) What requirements must be fulfilled for MobilesRus to be able to avoid the
contract under the CISG?
d) Given that We-Assemble makes large and regular sales (including delivery
obligations) to the UK, what advantages does the incorporation of FOB provide in
this scenario?
A good PMA generally requires you to answer the question and to include…
A title, with your student number, module, lecturer’s name and any other
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2. A contents page and if appropriate, an abstract.
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