International Trade Law: A Case Study on Global Foods Dispute

This report analyzes a complex international trade law case involving Chokoland, Global Foods, Chocolatier, Zhong Toy, Atafood, and Western Australia Freight Company. The case explores a dispute over the supply of Swiss chocolate eggs, examining key facts, legal issues, and outcomes. It delves into the commercial and legal implications of Incoterms 2010, the transfer of ownership, and risk issues related to transport and delivery. The report identifies shippers, carriers, consignors, consignees, and relevant third parties, clarifying their rights, obligations, and liabilities. It concludes by identifying the party ultimately damaged by mismanagement and advises all involved parties on practical steps to minimize risks and maximize business outcomes. The analysis covers delays in production, transportation issues, and the impact of the Easter holiday, providing a comprehensive overview of the international trade dispute.

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International Trade Law
Student’s Name
Institution Affiliate
Date

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Practice Question 1
What are the key facts, legal issues, rules and outcomes of the case? Make sure to provide a
tentative conclusion as to the potential resolution of this dispute.
Chokoland retail shop made an order to Global Foods for the supply of Swiss chocolate
egg with a small toy inside. The supplier was to deliver goods before 16th April according to the
terms of the contract. The total price of the order which was agreed upon also included the
delivery cost to Chokoland warehouse. Global Foods went ahead to purchase the eggs from
chocolatier producer at 30 percent plus a down payment, but this was after it had received 50
percent discount form the retailer. Chocolatier was to deliver to Global Foods by March as
agreed.
In early February, Chocolatier was quick to finish production of raw chocolate, and this was to
be shipped to Atafood for processing (Di Lieto & Treisman, 2018).
That chiefly depends on Zhong Toy a manufacturing company to complete
manufacturing by the end of January. However, this was contrary to the agreement, since the
delivery was done later in March. Atafood found itself on the receiving end characterized by
spoiled eggs because of exposure to heating at the warehouse caused by the delay. The Western
Australian Company which was mandated by Global Foods to do delivery to the final destination
also got confronted by the shortage of full supply, and thus it had to wait and do a full
consolidation of eggs. This was as a result of the previous agreement by the Chokoland.
It was about to make full delivery of the order, and the standard practice in the freight
forwarding industry also hold it so. Since it was now an urgent order to be delivered, Western
Australian Company charged its freight fees three times the agreement (Di Lieto & Treisman,
2018).

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At the final destination, the manager of Chokoland failed to deliver the eggs and due to the delay
there was the need for compensation as a result of the losses of not selling at the retail price. The
failure to deliver the goods was because of the Easter holiday which coincided with the day of
delivery, and 50 percent discount was to be waived for any sell of the egg.
Practice Question 2
Global Foods wholesale on further note purchased the eggs from the Chocolatier, but this
was to undergo processing by the Atafood Company. It solely depends on another company
doing manufacturing that is, Zhong Toy (Di Lieto & Treisman, 2018). All these were coded
timeline, so Atafood could not meet its target because Zhong Toy delayed the process.
Western Australia Company dealing with freight transportation was also contracted by Global
Foods wholesale to deliver the eggs to the final destination, but this was being done in full
delivery and on time agreed upon. Since the goods were required very urgent, this altered
previous agreement and flight was used instead. This tripled the prior agreed price.
Practice Question 3
What are the commercial and legal implications of all the various Incoterms 2010 involved in
this scenario? Identify the transfer of ownership dynamics, and explain the risk issues related to
the transport and delivery of the goods.
The failure to fulfil the agreement obligation by either party in the contract could lead to
commercial or legal complication. Global Foods wholesale had made an agreement with the
transportation company, Western Australia. However when they changed the terms of the
agreement to be so urgent, the initial cost of transportation was therefore tripled (Di Lieto &
Treisman, 2018).The key risk was therefore in relation to the cost of transportation which was to
be covered by the transportation company due to double charges imposed on transportation.

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Practice Question 4
In relation to all the carriages of goods by sea and air involved in this scenario, who are the
shippers, carriers, consignors, consignees and relevant third parties? Clearly identify their
respective rights, obligations and liabilities, including under the perspective of applicable
domestic and international legal regimes of marine insurance.
In this scenario, Global Foods Wholesale are the shippers because they are the one who
were concerned with the organization of the transportation of the final products to the final
destination by air through Western Australia Freight Company (Di Lieto & Treisman, 2018).
They have an obligation to ensure that goods reached the final destination. Failure to meet this
they faced compensation penalty. On the hand, the carriers in the case study is the Western
Australia Freight Company since they are directly involved in carrying the final goods to their
final destiny.
The company is liable to consolidate all the ordered goods to make the final delivery.
Global Foods Wholesale also falls under the consignor since it is the one that was to send the
goods to the buyer (Chokolands) who ordered for the products. The company was the one who
carried all the transportation liability. Chokolands retail is the consignee since it is one to receive
the ordered goods or the sent products. Chocolatier and Zhong Toy on the other hand were the
third parties since they are there to facilitate the process of international trade.
Practice Question 5
Who, ultimately, is going to be damaged by the mismanagement of this international trade of

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goods? Accordingly, advise each involved party on the next practical steps to take in this matter
to minimise risks and maximise their business outcomes
The company which is ultimately going to be damaged by the mismanagement of this
international trade of goods is the Global Foods Wholesale. To minimize risk and maximise
business outcomes, Zhong Toy should increase the efficiency of its production to meet time
factor. The Western Australia on the other hand should ease the bureaucratic terms of its
operation to increase flexibility. Consequently, Atafood Company should avail all the raw
materials for the production of full processing.

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References
Di Lieto, G., & Treisman, D. (2018). International Trade Law. International Trade Law,
Textbook published by The Federation Press, Sydney (Australia).