Purpose

The purpose of this project is to research, analyze and apply relevant legal concepts and law related to administrative regulations and international sales contracts.

This project requires you to identify and assess legal issues, apply law to facts and make recommendations.

Course outcome met by this project

• analyze and apply administrative law and consumer and environmental protection principles to determine appropriate actions for compliance and assess liabilities in the business environment.

Background:

A company based in Mexico, Pintura Pura SA de CV (Pintura), has contacted the owners of PI with an offer to sell a new exterior paint to PI as well as offering exclusive distributorship of its exterior paint products in the United States. Pintura’s products are competitively priced and Pintura claims that its paint is a low-VOC green product.

Pintura’s paint products would be exported from Mexico for resale and use in the United States.  PI is always looking for new products and is wants to learn more about Pintura and its products.

PI also wants to begin manufacturing its own line of paint supplies and wants to minimize manufacturing costs.  PI is interested in the possibility of Pintura manufacturing in its Mexico plant, a custom paint cleaner for PI according to PI’s specifications. PI would sell the paint cleaner under its own name in the US.

Your BCA supervisors, Pat Braden and Gale Roth, have given you the responsibility of researching and analyzing possible legal implications and potential risks and liabilities regarding the decision to enter into one or more contracts with Pintura.  You are to prepare a memorandum to Pat and Gale discussing these matters.

Instructions:

The memorandum should research, analyze and address the following areas:

I.  Pintura Pura Paint

Before deciding to purchase Pintura’s exterior paint products and enter a distributorship agreement with Pintura, it is important for PI to perform its “due diligence” and collect pertinent information about Pintura and its products to prevent or minimize potential liabilities for PI.

A.  List the areas/types of information that PI should collect – be specific and comprehensive.

B.  Explain, in paragraph format,  why/how each category of information is important in preventing or minimizing potential liabilities for PI.

II.  International Sales Contracts

A.  Analyze law related to international sales contracts and whether and how the Contracts for International Sale of Goods (CISG) applies to an agreement for PI to purchase and resell Pintura paint products in the US.

III.  US Regulations and Manufacture of PI Paint Cleaner

A.  Analyze whether PI would be subject to OSHA regulations if PI enters into an agreement for Pintura to manufacture a paint cleaner for PI to sell in the US, and if so, what risks and liabilities would PI face related to OSHA and the manufacture of the paint cleaner.

B.  Analyze whether PI would be subject to the Clean Air Act regulations if PI enters into an agreement for Pintura to manufacture a paint cleaner for PI to sell in the US, and if so, what risks and liabilities would PI face related to the Act and manufacture of the paint cleaner.