I. Calculation Company C has a contract to export 10 metric tons of Seafood, to be packed in cartons each of 40 lb. (1 lb = 0.45358kg), with a 5% more or less allowed both in quantity and in amount. 1. How many cartons of Seafood can Company C deliver at most? 2. How many cartons of Seafood should Company C deliver at least? II. Explain the following terms 1. quality latitude 2. quality tolerance 3. sale by counter sample 4. gross for net 5. standard regain 6. conditioned weight 7. more or less clause 8. shipping marks 9. F. A. Q. 10. neutral packing III. Short questions 1. What are the two common ways of indicating quality of goods for export? 2. What are the issues to be concerned when specifying quality clause in a sales contract? 3. What are the common ways to measure the weight of export goods? 4. What are the different ways of calculating the tare when net weight is used? 5. What are the issues to be concerned when specifying quantity clause in a sales contract? IV. Case studies 1. XYZ Company signed a contract to export Red Dates. The contract specified that the dates should be “Grade 3”. But at the time of shipment, there were not enough third-grade dates on hand for delivery. As a result, dates of higher quality, Grade 2, were used as substitutes. The seller proudly marked the invoice, “Dates of Grade 2 sold at the price of Grade 3”. (1) Could the buyer refuse to accept the goods? Why or why not? (2) Would you do differently if you were the seller? How? 2. ABX Company sent a sample of exporting goods to a German buyer during negotiation. Later, a contract was signed, and the provision of the goods was, “Moisture: 14%; Impurity: 4%.” Before shipment, the seller again cabled the buyer, “Quality as per sample”. After taking the delivery, the buyer had the goods inspected. Although the quality conformed to the terms of the contract, it was lower than that of the sample by 7%. As a result, the buyer filed a claim for compensation. Did the seller make any mistake? Why or why not? 3. ABC Company signed a contract to export rice. The quantity was 10,000 tons. After taking the delivery, the foreign buyer demanded an additional 160 metric tons of rice. What went wrong? 4. A Beijing company signed a contract to import wool from Australia. The quantity was specified as “20 M/T”. When the wool was delivered , it had a regain of 33%. (1) What is a regain rate? (2) Why did the buyer get a bad deal? (3) If the standard regain is 10%, and actual regain is 33%, what is the conditioned weight? 5. KH Company was exporting bicycles to the US. The contract stipulated, “Packed in wooden case.” Although the letter of credit stated, “Packed in wooden case C.K.D.”, the exporter packed the bicycles as usual (SKD). The invoice and shipping documents were marked “C.K.D.”. But at the port of destination, the customs imposed a severe penalty on the goods, and the buyer demanded compensation from the seller. Was the buyer entitled to the compensation? (C.K.D.: Completely Knocked Down, S.K.D.: Semi Knocked Down)