Business law T yler\'s Sport\'s Bar and Grill ordered twenty cases of vintage wi
ID: 449578 • Letter: B
Question
Business law
Tyler's Sport's Bar and Grill ordered twenty cases of vintage wine from a winery in Southern France. The Contract called for the wine to be shipped "CIF" aboard a vessel leaving Nice and arriving at the Port of Philadelphia on the Delaware River two weeks later. When Joe Roberts uncorked the first bottle soon after the shipment arrived, he discovered that all of the wine had spoiled. A sample bottle had been tested prior to shipment and no problem was detected. Robert is now wondering what, if any, legal action he may take to recover the cost of the wine.
Questions:
1. In what court and against what parties may Tyler's bring the action for the spoiled wine?
2. Based upon what laws will this matter proceed?
3. Who do you believe will win the lawsuit? Please explain
Explanation / Answer
CIF stands for a Cost, Insurance and Freight contract, an agreement to sell goods at a price inclusive of the cost of the goods, insurance coverage and freight. Under the CIF contract , the purchaser is obliged to pay against the tender of a clean bill of lading even after the goods have been lost or damaged at sea after the shipment.
Therefore as per my understanding Joe Roberts may not succeed against the supplier as the sample tests at the time of shipment showed no defectives. Tyler may bring the case against the shipping company as well as have claims from the Insurance company but needs help from the Winery company about the good quality of goods at the time of shipment and essential safeguards about the shipment rules & regulations.
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