Confidential Information B_Fall 2023
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California Polytechnic State University, Pomona *
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Course
302
Subject
Law
Date
Jan 9, 2024
Type
docx
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1
Uploaded by DrCoyotePerson698
Confidential Information Sheet-B: Team 2, 4, 6, 8
Ministry of Defense Brazilian Army Commission Procurement Contract
Buyer: Procurement Division, Brazilian Army Commission (BAC)
You will play the role of the procurement division of the Brazilian Army Commission. You are
trying to get the best ballistic helmets for the most reasonable prices and you understand the
current U.S. bidder – Pioneer Ballistic, Inc., has some of the most reliable products to supply.
The company is not yet admitted to your Supplier Database and you are interested in offering
them an opportunity. The present contract is a template your division has been using for years but
you also have certain authority to negotiate. With the current bidder you would like to negotiate
the following terms:
Delivery and Insurance (Article 11)
– With COVID-19 everyone is trying to minimize
risk of loss in international shipping, and you would like to negotiate for the seller to be
responsible for a bigger portion of the shipping segment, by changing the current
incoterms “CIF” arrangement to “DAT” or “DAP”. Regardless, you think the seller
should double the insurance premium.
Export License (Article 12)
– You understand that U.S. export regulation is subject to
change and your procurement is in a sensitive area that is sometimes impacted by
political situations. You would like to add a provision for the seller to guarantee the
successful application of export license, or else, a provision for your department to walk
out of the contract freely in the event that export license application fails.
Conditions for the Receipt of Material and Service (Article 14)
– As internal
procedures change within the government; your government requires one other
representative from the Ministry of Commerce to participate in the inspection. Also since
the Ministry of Commerce will participate in the joint issuance of Discrepancy Report
you need a longer deadline (possibly 60 days after inspection) to reject the goods. You
want this possible delay to be reflected in the amended contract.
Governing Law and Dispute Resolution (Article 19)
– There is a new law in Brazil
that requires all contracts entered into by government provisions be governed by
Brazilian laws. If there is arbitration, then the arbitration must take place in a suitable
arbitration venue in Brazil. The law has a three-year phase-in period so for now you are
free to negotiate for the contract to be governed by the United Nations Convention on
Contracts for International Sale of Goods (CISG). Still, you would like to raise the
possibility to arbitrate in Brazil. If you stick with the current arrangement to arbitrate in
American Arbitration Association (New York), then you prefer to have the arbitrator as a
non-U.S. citizen to minimize bias.
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