Law School Discussion

Specific law question, I am a German student

Georg Fichtel

Specific law question, I am a German student
« on: October 27, 2002, 11:26:42 AM »
Dear Gentlemen:

I am a German student and currently I am confronted with a question in regards to American common law:

A company "C" (from NYC) bought an item, FOB at the shipping  point (LA), in the purchase order was explicitly stated that a certain carrier should conduct the distribution. The supplier "S" did not change the PO.
C agreed to clear the invoice immediately in order to make use of the 5% cash discount, but the shipping was conducted with a different carrier as stated in the PO. The carrier had an accident and the item was destroyed.

Has the company C any rights (payback of invoice or new item?) or is the supplier S right, that C agreed to the FOB LA and also agreed to the different carrier by paying the invoice?
Has C to work out a solution with the carrier company or can S be made responsible?

I am sorry for all those questions, but I am not familiar with common law at all.

Thanks in advance,

Best regards