Read the text below and answer the questions. Suppose that Craig Wind, a divisio
ID: 360461 • Letter: R
Question
Read the text below and answer the questions.
Suppose that Craig Wind, a division of Craig Electric Co., decides to contract with Mana, an Indian wind turbine manufacturer, for offshore turbines to be installed along the eastern shore of the United States. The two parties begin negotiations, but problems soon arise regarding the shipment, type, and terms of acceptance of the control systems supporting the new offshore wind turbines.
Suppose that Craig inspects the first shipment from Mana, but when the inspector opens the first crate it becomes clear that instead of shipping control systems for offshore wind turbines, Mana instead has sent control systems for onshore turbines. Onshore turbines require a completely different control system to operate correctly. Craig decides to reject the shipment, and requests that Mana pay the inspection expenses. Who is correct?
Explanation / Answer
Answer:
In the given scenario, Craig is correct.
Explaination: Craig and Mana has contractual relationship. Contract is a very formal and authentic document which establishes the cntractual relationship between Buyer (Craig) and Seller (Mana). Contract is a legal binding and both buyer and seller have contractual obligations to follow it.
The contract is made for offshore wind turbines control system. However, the shipment consisted the onshore wind turbines control system. Therfore, the shipment was not as per the scope of work given in the contract. Therefore, Craig should reject the shipment.
Inspection process is mandatory process undertaken by the Buyer to check the quality of service or product provided the seller. There is a cost associated with this process. It is Mana's responsbility to deliver required shipment to Craig. As Craig has ireceived the incorrect shipment and he should claim Mana for his expenses.
NOTE: I would like to have your opinion and if you have any doubt in specific. I will be glad to help you.
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