TRANSNATIONAL BUSINESS LAW & ETHICS Harvard Case Solution & Analysis

Transnational business law & Ethics Case Study Solution

Part 1:

The two companies who have been doing business for several years faced problems and disputes among themselves and asked the outside party to solve the issue. The two parties are the Newgarth coffee company and Garth Supply Company, S.A. which both operates in the Newgarth.

Newgarth Coffee Company:

The Newgarth Coffee Company basically deals in the selling of coffee throughout Newgarth and in several neighbouring countries. The company is under the laws of Newgarth, and its main office is in the Capital city which is in Newgarth. The main company source of obtaining coffee is through suppliers as the company is not the manufacturer itself as the area in which Newgarth is located does not have the proper climate, weather and land to grow good quality coffee beans. The major supplier of Newgarth Coffee Company in obtaining the coffee beans is through Garth Supply Company S.A.

Garth Supply Company S.A.:

The Garth Supply Company S.A. deals in supplying coffee to big companies along with other commodities. The company is under the laws of Garth, and its main office is located in the Port City which is located in Garth. The company deals in distributing products which are manufactured inside the country and also which are produced in other countries. The Garth Supply Company S.A. also deals in supplying coffee to one of the companies which are the Newgarth Coffee Company.

Exhibit 2:

The companies Newgarth Coffee Company and the Garth Supply Company made a contract to conduct business among themselves. The Newgarth Coffee Company would purchase coffee from the Garth Supply Company S.A. The contract which Newgarth Coffee Company came up with was, that Garth Supply Company S.A. will purchase around 400 tons of coffee yearly. The price which was determined in the contract was around $1,240.75 per tonne and which around the overall cost for the 400 tonnes about $496,299.55. The transportation would be done according to the seller and the delivering would either be made by one or more installments depending on the seller. There was no such time and date discussed for the supplying of coffee other than that it would be done yearly.

If the contract would be violated by any method, then the companies would have to settle its disputes among the three arbitrators according to the rules of arbitration of the Commercial Arbitration group of Brussels in Belgium and the trial would take place in the Tilburg which is in Netherlands.

Problem faced by the companies

Both the company faced dispute and problems among themselves when the Garth Supply Company delayed supplying the required tonnes of coffee to Newgarth. The reason for this delay was due to the storm which the coffee area in Garth which reduced the production. After few months passed the Garth Supply Company was able to only able to supply 100 tons of coffee to the Newgarth Coffee Company, and the company had to buy 300 from another supplier. The Newgarth Coffee Company then demanded that Garth Supply Company should pay the sum of $289,353.00 USD to cover its damages.

Law for resolving the disputes:

The disputes between the companies would be solved by the Arbitration as stated in the contract. The Arbitration would be done by the three Arbitrator who would generally look at the facts and will solve the issue according to the legal rules and ethics. The trial would generally be based on the Tilburg, Netherlands.

 

 

TRANSNATIONAL BUSINESS LAW & ETHICS Harvard Case Solution & Analysis

The Arbitration is a process in which it is considered as an out-of-court method on which the judges listen to both the parties and will make the practical decision. The judges will hear testimonies, check exhibits which are overall of 11 exhibits in the case which discusses its overall meeting, telephones and emails related to the dealing of buying and selling of coffee as discussed by Newgarth Coffee Company and Garth Supply Company. The overall judges who handle the Arbitration are three which hears people testimony and make decisions.

The Arbitration is private and less formal than going to courts and usually are quick and inexpensive. It is also considered as for providing equal justice for resolving disputes among the parties as both the parties will have the opportunity for providing evidence and making arguments.......................

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