Project description
1.Read the case firt (the document I attached),
2. Use the company Gumpbell as the selected party, (1) identify the transactional and financial risks, (2) make specific proposals and (3) provide justifications for such proposals based solely on the international business transaction for Gumpbell
3. There are 5 phases in this case. In each phase, analyze three points I mentioned above seperately ( the sample analysis will be given)
PHASE I: Manufacture and Sale of Product
This Phase I of the transaction covers the basic issues involving the manufacture and sale of the product to be sold by the Seller to Purchaser taking into account the following matters:
A. Specifications
B. Quantities
C. Purchase Order Procedure
D. Forecasts
PHASE II: Transportation, Delivery, Transfer of Title and Risk of Loss
This Phase II of the transaction covers the basic issues involving the transportation, delivery, transportation of title and risk of loss of the product in transit from end to end taking into account the following matters:
A. Transportation Mode
B. Point of Delivery
C. Transfer of Title
D. Passage of Risk of Loss
PHASE III: Product Quality Control, Inspection and Rejection
This Phase III of the transaction covers the basic issues involving the quality standards of the product, quality control of the product, inspection of the product, acceptance of the product and/or rejection of the product either prior to or upon delivery of the product taking into account the following matters:
QUALITY AND QUALITY CONTROL
A. Quality Standards
B. Quality Control Procedures
C. Product Warranties
INSPECTION, ACCEPTANCE AND REJECTION OF PRODUCT
A. Inspection
B. Acceptance
C. Rejection of Non-conforming Product
PHASE IV: Pricing and Payment
This Phase IV of the transaction covers the basic issues involving the pricing, pricing mechanisms, pricing adjustments and invoicing of the price and quantity of the product and the methods and timing of payment for the product taking into account the following matters:
A. Price
1. Base Price
A. Point of Delivery for Pricing Purposes
B. Components Included in Base Price
2. Adjustments to Base Price
A. What Adjustments?
B. When?
3. Notice of Adjustments
A. When?
B. How?
B. Invoicing
1. Form of Invoice
2. Method of Invoicing
3. Time of Invoice
C. Payment
1. Due Date for Payment
2. Credit Terms
3. Method of Payment (i.e. C.O.D. Open Account, Letter of Credit)
4. Documents to Be Present if Letter of Credit Used
PHASE V: Proprietary Rights and Distribution Rights
This Phase V of the transaction covers the basic issues involving the proprietary rights of both seller and purchaser, the scope of use of proprietary rights, protection of proprietary rights and the permissible distribution channels for the product taking into account the following matters:
A. Proprietary Rights
1. Proprietary Rights of Hen Hao
2. Proprietary Rights of Gumpbell
3. Use of Proprietary Rights of Either Party
B. Intellectual Property Rights Indemnification
C. Distribution Rights
1. Distribution Rights of Hen Hao
2. Distribution Rights of Gumpbell
