Marine Groups Limited: Analysis of Int'l Trade Law Compliance

This report provides a comprehensive analysis of Marine Groups Limited, a hypothetical shipping company, and its compliance with international trade laws. It covers key areas such as marine insurance under the Marine Insurance Act 1906, Free On Board (FOB) contracts, and the role of the bill of lading in international trade. The report also delves into the contracts of international sales, highlighting the importance of implied and express terms, and identifies potential risks in the shipment process, including unreliable carriers and cargo theft. Furthermore, it offers recommendations for enhancing the company's operations and ensuring compliance. The analysis considers the company's reliance on bank capital and insurance for security, and concludes with an overview of the critical aspects of international trade law relevant to Marine Groups Limited. Desklib provides access to similar solved assignments and past papers for students.

MARINE GROUPS LIMITED (FICTIOUS)
BUSINESS REPORT
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Table of contents
Introduction................................................................................................................................... 3
Background................................................................................................................................... 3
Compliances of the international trade laws with MARINE GROUPS LIMITED Company...................5
Compliance with the Marine insurance MIA 1906.............................................................................5
Compliance with the Free On Board (FOB) contracts.........................................................................6
The bill of lading (business trade)....................................................................................................7
Contracts of international sales: the terminology................................................................................7
Risks............................................................................................................................................ 8
International trade mitigations.........................................................................................................9
Recommendations.......................................................................................................................... 9
Conclusion.................................................................................................................................. 10
References................................................................................................................................... 11
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Introduction
The following content is with the context of a hypothetical shipping Company Marine Groups
Limited which does its business through the waterways is more focussed on implementing the
various strategies as well the application of the law of trade with respect to the module of
scenarios regarding the import and exports along with the procurement of the demonstration of
the working practise of the law of trade. The law of trade pertained overseas concerns with
allocating the resources of economy among the overseas country. And a further evaluation of the
critical contract laws is done in accordance to the chosen Company of Marine Groups Limited
being hypothetical in nature. Further the specific involvement of capital providers such as bank
along with financial security providers such as insurance companies are also concerned for
procuring the business and also putting relations with the carriers of the import or export
materials. Further, some recommendations are implemented for the procuring the enhancement
of the mentioned shipping Company and a final conclusion is given dictating the overall analysis
o the content.
Picture 1: Shipping direction
Background
The content of the following topic is on the focus of the hypothetical shipping Company Marine
Groups Limited, that is situated in Denmark, which is mainly targeted for the export of concrete
pipes to mainly the western countries as well as the Asian countries, where the need of
construction materials are at high stake. By procuring the surplus exportation, the shipping
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Company profits for the importation of surplus of other nations. The shipping Company features
the transportation companies along with ports, depots of truck and airports through the network
spread worldwide. The trade of the export or import of the Marine Groups Limited Company is
affected by the policies established by the government followed by the limiting of import quotas
and the procurement of goods that that are unable to be supported by the producers in domestic
field. The shipping Company solely does the shipment through the sea ways and doesn’t prefer
the roadways or the airways. The Company is not linked with any activities of the European
Union. The Company also earns the capital from the national bank of the state and secures the
travel by complying with the national insurance Company in case of any accidents during the
mid way shipping journey along with for the workers.
Picture 1: concrete pipes
Product
name
Size
(foot) Numbers Number of product in
each container
Weight
(tonnes)
Price(million
)
Concrete
pipes
12” 500 50 2841 20
15” 250 23 3627 31
18” 425 35 3648 33
24” 400 31 3827 37
Table 1: product details for shipment
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Compliances of the international trade laws with MARINE GROUPS LIMITED Company
Compliance with the Marine insurance MIA 1906
The hypothetical shipping Company is with the bonding of the indemnity contract with the
insurer in favour of the marine losses regarding the incidents of the marine adventure, that refers
to the ship exposure towards the perils of maritime that is the reason for danger towards the
concerned goods and the profit along with the liabilities that are achieved form the third parties.
The Company is in compliance with the mentioned policy. The position of the ship with
reference to none of the excuses under the law if deviated from the policy voyage that is being
contemplated, the discharge of the insurer from the concerned liabilities are taken into
consideration as well as the compliance of the ship that might regain her route before confronting
any loss.
Comparison between the bank services and the related insurances
National bank Federal bank
 Acceptation of demand deposits
 Foreign investment allowed up to 100
percent
 Facility of insurance deposit
 Transaction services
 Reserve ratios maintenance
 Doesn’t accept demand deposits
 Foreign investment allowed up to 74
percent
 Available facility of insurance deposit
 Transaction services
 No maintenance in reserve ratios
As suggested by Young (2016), the policy provides the compensation in case of the loss or
damage that occurs under the attributes of explosive situations, sinking of the vessel or being
capsized, overturning of the vessel, getting collided with an external object other that the water
body and the loss of package which are lot overboard or being suffered accidental drops during
loading or unloading of goods. According to Antras and Foley (2015), if there are any sort of
changes in the departure and destination in the policy documents then the risks won't be punched
in and it would be covered in the conditional premiums and subjective arrangements.
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In case of any sort of non-compliance of policies mentioned above, the Company can face severe
losses on the lost or damaged products and may subject to downfall of the overall revenues
generated on the context of business profitability. Further in absence of any insurable interest for
the concerned Company, the Company would be devoid of the benefits obtained from the safe
arrival of the goods, followed by the prejudices of the delays or the damages of arrived goods.
Further, the Company would be incurred for the liabilities in case of loss or theft or any sort of
delay of the goods.
Compliance with the Free On Board (FOB) contracts
The Marine Groups Limited shipping Company is in compliance with the Free On Boards
contract. As opined by Winter (2016), in case of the Free On Board contract, it is the buyer who
is held responsible for the nomination of ship and the made payments regarding the other factors
of the shipping procedures, while also having the power to have the seller for working on same
on his behalf. The Free On Board contract is divided into three main categories, the strict
contract, the classic contract and the extended or additional services.
The strict contract under the Free On Board contract refers to the buyers’ nomination for the
vessel to be concerned for shipping and the whole contract of carriage is made by the buyer
itself. Here the buyer is termed as the legal shipper. In contrast to the strict contracts, the classic
contract also comprises and appreciates the buyer in the nomination of the vessel for shipment
but the contract of carriage is made by the seller itself. As opined by Mansfield and Reinhardt
(2015), in this type of contract the seller is referred to as the party under whom the contract
carriage stays until the lading bill is drawn out in the name of the buyer. And the final contract is
referred as the services that are either extended or are in additional under the Free On Board
contract. The whole procedure stays in the hand of the seller. The nomination of the shipping
vessels is done by the seller itself followed by the procurement of the contracts of carriages.
Further, the bill of lading is taken out by the seller itself by their own names.
On this context the concerned shipping Company Marine Groups Limited is with the compliance
of the classic contracts of the Free On Board contracts. Here the nomination stays in the hands of
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the buyer that can put the satisfaction for the buyer for their choice of shipment. Further the
contract carriage is to be made by the Company that lets the Company to comply the carriage
aspects regarding the shipping’s in order to maintain the demands of the buyer. In words of
Brack (2017), putting the bill of lading by the seller’s name assures the seller of the genuinity as
well as the congenity of the contract.
The Company is also having compliances with the Cost, Insurance and Freight contracts which
states that it is not undertaken by the seller for the goods that are actually to arrive but in
reference to such matters, the possession of documents stays in the hands of buyer and is
conferred the right for the collection of the goods or claiming to the insurers. Under such
conditions the legality of the contract will get lost if in case of war and under such circumstances
the seller won't be tending the documents that are valid.
The bill of lading (business trade)
The shipping Company Marine Groups Limited is with compliance of the bill of lading that
functions as the contract for the available carriage followed by the procured receipt of the goods
that are shipped or to be shipped and the ownership titles. The receipt ensures the quantity or
weight of the goods that are to be shipped followed by the identification marks that are to be
readily apparent and the available condition that are forged to undergo the determination
procedures by either of unclean or clean bill of lading.
In any sort of non-compliance of the above mentioned trade law by the shipping Company
Marine Groups Limited; the organisation is subjected to face the export consequences of the
product against the buyer. Neglecting the FOB contracts modules can result in the negotiation of
the carriage aspects. Further the negotiation of bill of lading would deprive the Marine Groups
Limited shipping Company of the product details that are to be shipped and can lead to business
issues that can be fatal for the business profitability of the concerned shipping Company.
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Contracts of international sales: the terminology
The contract of international sales deals with two terms namely the implied term and the other
one being express term. The terms that very specifically mentioned inside the contract are the
express terms while the implied terms are mainly related to the sales of goods act of 1979.
The terms that are implied bulkily are subjected to correspond for the quality of the sample and
are free from any sort of defect that results in the unsatisfactory quality that are not supposed to
be apparent for the procurement of a reasonable examination conducted in favour of the sample.
There would be no availability to the sellers in case of any defence with reference to the implied
terms that are having easy correspondence with the sample. With the context of the following
terms, the shipping Company Marine Groups Limited complies with the above content. The
Company focuses on the sample provided in reference to the original product as the sample
reflects the productivity of the original product in front of the buyers, as an unsuitable sample
can produce denials of buyer to inculcate the product and on such conditions implements the
business failure of the Company.
Risks
The risks that are pertaining in the shipment process for the concerned Marine Groups Limited
shipping Company are way more disruptive. The presence of unreliable carriers who takes less
cares about the responsibility for the destroyed products or follows endurance of the approval
prior to the carriers that are subcontracted. Further risks are concerned in case of thefts of the
cargo in which the small products stay mostly in the target. Hence the risk of warehousing is one
of the major concerns where the transportation component results in the risk in case of improper
storing aspects as well as mishandling of the products.
The risks are confined under the seller until the concerned property is transferred towards the
buyer. In case of the property being transferred to the buyer, the transferred goods goes under the
buyer’s risk considering the delivery either made or failed. The cost insurance and freight risks
along with the property are transferred to some extent after the accomplishment of the shipment
when the documents are taken for concern and are to be paid up for the consequences.
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The Company is in compliance with the acceptation and rejection consisting the two rights in
reference to the Cost, Insurance and freight buyers. According to Álvarez (2018), the non-
compliance of the shipment to face delays for delivering the products is considered to be a
breach in shipping management and thus procuring losses in the business. The subject of
acceptance is also to be concerned by the shipping Company Marine Groups Limited. if the
buyer is subjected to comply the usage of the concerned product for a definite amount of time
and then rejecting it at the time of contract can result in an unreasonable inconsistency with still
the ownership to be in the seller’s side.
International trade mitigations
In case if any dispute is found during the pursuit of the trade processes regarding the laws on
international basis, there are various processes that can be undertaken by the Marine Groups
Limited shipping Company against the occurring consequences.
The Company can imply the processes that are consensual in nature in favour of negotiating the
occurred issue. In case of non-functioning of the consensual processes, the procedures of
litigation as well as arbitrations that are known as the process of adjudications in combination
featuring a jury, judge or an arbitrator for the determination of the outcome. As opined by Kohl
(2016), the process is solely dependent on the defendant who is to be sued along with the
confirming of the residence of the concerned along with the featured laws and regulations that
are applied in that particular location. Further the service can be more affected by the disruption
of services that deals with personal affairs, the courier or the post on the top of the class present,
the ignoring of business and residence and negotiating the lawyer and electronic mails.
Recommendations
In case of the fictitious Company Marine Groups Limited taken into consideration, there are
various recommendation that are to be commended for the welfare of the concerned fictitious
organization. The Company should ensure that the compliance with the trade laws for
commencing the shipment procedures is being well maintained. The laws must comply with the
shipping aspects and in reference to such the Company must imply regulations to meet the
corresponding demand. Further the government can implement various policies regarding the
shipment procedures to ensure that the Company can withstand the market aspects as well as the
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procurement of the political affairs. The Company should focus on featuring a good business
plan and can beacon the respected guidelines that can enhance the decisions that are favourable
for the business. The plan of the business should focus on the overview followed by the skills of
competition and the respective ranges of prices available. Further the business plan can value the
proposition as well as the compliance of marketing and financial aspects regarding the market
threats. The provision of the development of brands that are based on corporate aspects by the
shipping Company can also influence the marketing demands of the Company on a global scale.
Conclusion
Form the above content, it can be concluded that the fictitious Company Marine Groups Limited
puts its focus on procuring the shipping business through the waterways and is procuring the
shipment of the concrete pipes to he western and the Asian countries where the construction
procedures are always at stake. A rationale or background revising the aspects of the Company
along with the outcomes and its customer factors are taken into consideration. Further the
conclusions can be drawn out on the trade laws that the Company can follow to upheaval for the
policies of running the shipment Company. The implementations of the various trade laws are
done in favour of the shipping Company as well as the consequences of ignoring those laws are
depicted in a clear tone. Further the risks are analysed in favour of the concerned shipping
Company and the various litigations in favour of the risk. The risks are analyzed on the basis of
various factors such as the unreliability of carriers along with the theft issues along with the
conflicts between the buyer and seller modules. Following the risks, the concerned
recommendations are established that are in accordance for procuring a stable shipment business.
It included the trade laws compliances along with the application of policies on various factors in
favour of the shipping Company and in accordance to such, the maintaining of the political
affairs that are having relation with business aspects of the shipping Company.
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References
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