Exercise Chapter 8


Van Tubergen BV of Lisse, Holland (Van Tubergen) sells 100,000tulip bulbs to Floricultures de la
Maresma 'Florimar' Soc. Coop.Lmta. from Barcelona, Spain (Florimar). Transportation has
beenarranged by Hendriks, an independent entrepreneur who acts onbehalf of Van Tubergen, as agreed
on by the parties, and is carriedout by Docks de Bourgogne, a Dutch transporting company(Docks),
contracted by Van Tubergen. Under the contract of saleDocks will collect the goods at the place of
business of VanTubergen and deliver the goods at the place of business of Florimar.

Payment has to be made into an account Van Tubergen has withRabobank, domiciled in Lisse (Holland).

Florimar has requested and has been given an L/C from theDeutsche Bank, domiciled in Barcelona
(Spain), which has sentthe L/C plus necessary documents to Van Tubergen's bank,Rabobank established
in Lisse (Holland), who has confirmed theL/C.

Because of engine trouble of the truck, a circumstance for which itis responsible, Docks delivers
the bulbs two days late in Barcelona:when checking the goods on delivery, Florimar finds that half
of thebulbs have gone bad and that the rest of the bulbs is no longer fitfor sale. This is due to
the delay, but also due to the fact that atruck with cooling equipment and isotherm walls should
have beenused for transporting these bulbs, instead of a conventional truck,like the one used by
Docks.

Florimar refuses to pay and to accept the goods. Van Tubergenclaims payment of the price of
Florimar and compensation of itsdamages from Docks.


Question 1

In this case, who are the sender, the shipper and the carrier?


Question 2

Does the CMR Convention apply to the transport of the bulbs fromHolland to Spain?


Question 3

Under the CMR Convention, who is liable for the damage to thebulbs i.e. the damage of Florimar?


Question 4

Looking at the text of case 1: what Incoterm is used by VanTubergen and Florimar, and why?


Question 5

Concerning the L/C: in this case, who is the advising bank and whois the issuing bank?


Question 6

Does the confirmation of the L/C by the Rabobank in Lisse (Holland)hold an obligation for Florimar
to pay the bulbs for which the L/Cwas arranged for?


Question 7

In case of a lawsuit of Van Tubergen vs. Florimar as a result of a non-payment by Florimar, what
court of law has jurisdiction?


Question 8

Does the CISG apply to the contract of sale between Van Tubergenand Florimar? Does Florimar in
general, even though the bulbs havegone bad, an obligation to pay Van Tubergen for these bulbs?


Question 9

In case the CISG applies, what are the legal options for Florimar?