Defective shipment from China

[ck9show@sprintpcs.co]

I am working with a company in an unusual situation: An order from China for a product was shipped to the US by a freight handling company (Expeditor). The shipping bill was 5,500. The China manufacturer bill was 22,500. The order was received in the US for inspection only to find that the shipment was defective. Neither the shipper or the manufacturer have been paid. Is the company that ordered the materials liable for either bill if they refuse to accept the order?

Ken

No they are not if the defects are material. Refuse it formally and send it back. Or offer them the right to cure the defects.

If this does not resolve ASAP you may have World Law's lawyers both in the US and in China intervene.

I am sure they could resolve it.

...I would add one point, make sure you double check what if anything you signed with the shipper. You could have made an independent agreement with them and be liable regardless of the defects.

Hopefully you did not set it up like that.

[ck9show@sprintpcs.co]

Well, the plot thickens...

The Chinese Supplier has agreed to drop the price by 50% (pretty good deal) but at this point, the company has lost it's Investor due to the defective shipment. The company cannot raise the money to take advantage of the Supplier's offer. The company has already made partial payment to the shipper (Expeditors). The shipment is stored in a warehouse under the company's name.

My question is; what recourse does the Supplier have if not paid?

Ken