Test Bank for International Business Law and Its
Environment, 10th Edition, Richard Schaffer, Filiberto
Agusti, Lucien J. Dhooge, ISBN-10: 1305972597, ISBN-
13: 9781305972599
.
, Chapter 1: Introduction to International Business
CASE QUESTIONS AND ANSWERS
Tarbert Trading Ltd. v. Cometals, Inc.
1. Import/export transactions usually require much more documentation than domestic
transactions. These include detailed invoices, packing lists, shipping and insurance
documents, and specialized certificates. In this case, a “certificate of origin” was required
by the government of Columbia before the goods could be imported. Does it refer to the
country from which the goods were shipped or where they were grown or made? Why do
you think Columbia required a certificate of origin? What is its purpose?
Answer: The CO refers to the country where the goods were grown or made, not from
where it was shipped. It identifies for the buyer where the goods come from, so if goods
from Country A have a better reputation than those from Country B, the buyer will know
which goods it is receiving.
2. Suppose that the beans had arrived in Columbia and were then stopped by Columbian
customs authorities because of a fraudulent certificate. What do you think might have
happened to the beans? What would the risk have been to Cometals and Tarbert? What if
the Columbian buyer had already paid for the beans?
Answer: They would have been impounded, i.e., not allowed to enter the country.
Cometals and Tarbert likely would face fines and perhaps criminal punishment. If the
buyer had already paid for the beans, the buyer could sue in Columbian court to recover
damages as the buyer did not get what he bargained and paid for.
3. Evaluate and discuss the conduct of Cometals and Tarbert. Fraudulent documentation is
not uncommon in international trade, especially when parties do not have a history of
business together. What are the lessons to be learned by all parties?
Answer: Their conduct was illegal and unethical. You need to know the party you are
dealing with. If that is difficult or impossible, the risk is greater and may lead to not doing
business with them. Agreements protecting yourself are very important in international
business.
Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc.
1. What are the “limited exclusive” rights granted to the licensees in this case?
Answer: Each has the right to copy and distribute DVDs of the film. Krupny could distribute
the films in the Russian language, and Ruscico could distribute dubbed or subtitled films in
various other languages.
.
Environment, 10th Edition, Richard Schaffer, Filiberto
Agusti, Lucien J. Dhooge, ISBN-10: 1305972597, ISBN-
13: 9781305972599
.
, Chapter 1: Introduction to International Business
CASE QUESTIONS AND ANSWERS
Tarbert Trading Ltd. v. Cometals, Inc.
1. Import/export transactions usually require much more documentation than domestic
transactions. These include detailed invoices, packing lists, shipping and insurance
documents, and specialized certificates. In this case, a “certificate of origin” was required
by the government of Columbia before the goods could be imported. Does it refer to the
country from which the goods were shipped or where they were grown or made? Why do
you think Columbia required a certificate of origin? What is its purpose?
Answer: The CO refers to the country where the goods were grown or made, not from
where it was shipped. It identifies for the buyer where the goods come from, so if goods
from Country A have a better reputation than those from Country B, the buyer will know
which goods it is receiving.
2. Suppose that the beans had arrived in Columbia and were then stopped by Columbian
customs authorities because of a fraudulent certificate. What do you think might have
happened to the beans? What would the risk have been to Cometals and Tarbert? What if
the Columbian buyer had already paid for the beans?
Answer: They would have been impounded, i.e., not allowed to enter the country.
Cometals and Tarbert likely would face fines and perhaps criminal punishment. If the
buyer had already paid for the beans, the buyer could sue in Columbian court to recover
damages as the buyer did not get what he bargained and paid for.
3. Evaluate and discuss the conduct of Cometals and Tarbert. Fraudulent documentation is
not uncommon in international trade, especially when parties do not have a history of
business together. What are the lessons to be learned by all parties?
Answer: Their conduct was illegal and unethical. You need to know the party you are
dealing with. If that is difficult or impossible, the risk is greater and may lead to not doing
business with them. Agreements protecting yourself are very important in international
business.
Russian Entertainment Wholesale, Inc. v. Close-Up International, Inc.
1. What are the “limited exclusive” rights granted to the licensees in this case?
Answer: Each has the right to copy and distribute DVDs of the film. Krupny could distribute
the films in the Russian language, and Ruscico could distribute dubbed or subtitled films in
various other languages.
.
