• Title/Summary/Keyword: Defective Goods

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A Comparative Study on the Buyer's Right to Withhold Performance for the Seller's Delivery of Defective Goods and Documents in International Sales within the CISG, English law and Korean law

  • Lee, Byung-Mun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.17
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    • pp.251-293
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    • 2002
  • The study is a comparative and analytical study which comprises of the analysis of the rules of the buyer's right to withhold performance where the seller delivers defective goods or documents of three legal systems; the CISG, English law and Korean law. The purposes underlying this study are twofold. The first is to clarify the current position as to the right of withholding performance in the event of the seller's tender of defective goods or documents in Korean law, CISG and English law so that it may assist the parties in drafting the buyer's right to withhold performance in their own contract. The second is to compare the rules of one jurisdiction with those of other jurisdictions and to evaluate the rules in light of the practical functions and benefits of the right to withhold performance and the discipline of comparative law the basic question of which is whether a solution from one jurisdiction may facilitate the systematic development and reform of another jurisdiction. It shows that each jurisdiction does not have any provision or case law specifically dealing with the buyer's right to withhold performance where the seller delivers the goods which are defective in terms of quality or quantity. The absence of such provision or case in each jurisdiction has resulted in either disputes or uncertainty. However, the study executed in light of the primary functions and benefits of the right in practice and the discipline of comparative law reveals that, first, the view in English law which is against recognizing the right may not be justified when one considers the practical importance of having the right and the position taken by the CISG as a well developed and modernized law, second, the view in Korean law which argues that the principle of specific goods dogma on which it is based is extended even to substitutable or repairable goods cannot be also justified on the ground of one's ordinary expectation and the position under the CISG and English law which imposes a contractual duty to deliver non-defective goods on the seller insofar as the buyer's payment is deemed to be made in exchange for the seller's delivery of non-defective goods and they are substitutable or repairable. Regarding the right to withhold performance in the event of the seller's tender of defective documents, the study shows that the relatively detailed rules in English law may be utilized as a guideline to fill the gap in the CISG and Korean law in terms of the practicability and appropriateness to govern documentary sales. Furthermore, it is found that the position in English law which confers on the buyer the right to withhold performance for a trivial defect in documents may be unreasonable in terms of one's need to enable justice to be done in individual cases.

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The Liability System and the Legal Nature of the Seller's Liability for Defective Goods under Korean Law and the PELS (유럽매매법원칙과 한국법상 결함상품에 대한 매도인의 책임의 법적성격과 책임제도)

  • Lee, Byung-Mun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.44
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    • pp.31-55
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    • 2009
  • This study attempts to provide a comparative overview of the liability systems Korean law and the PELS adopt, that is, the approaches taken by Korean law and the PELS to deal with various irregularities of contractual performance. In addition, it examines in a comparative way the questions of what is the position of the seller's liability for his delivery of defective goods under the chosen liability system and what is the legal nature of the seller's liability. The study finds that the dual liability system taken by Korean law has caused some complexities as to the matter of which liability is applicable in some borderline cases. The problem in such complexities is originated in that the remedies available and the limitation period applicable are differentiated in accordance with one's different categorization among three types of default under the general liability and defective performance under the seller's guarantee liability. In this light, the study argues that the unified liability system under the PELS is superior because its concept of non-performance embraces in a unitary manner all the aspects of default including defects in quality, quantity and title. In addition, it finds that Korean law has suffered endless debates on the question of what are the true contents of the same remedies of rescission and damages provided under the seller's guarantee liability as under the general liability. The debates have been come along on the basis of the traditional presumption among some of civil law jurisdictions that two liabilities be different in terms of not only their legal nature but also their contents of remedies. The study argues that the problem may be circumvented, first, by another way of thinking that the unified liability in Korean law is inferred from the specification of the identical remedies for both the general liability and the seller's guarantee liability under the KCC, second, by the preposition that the requirement of fault be depended upon what remedy the buyer seeks to claim rather than what liability he does to rely on.

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Remedies for the Seller's Delivery of Defective Goods under EC Directive in Comparison with English Law, Korean Law and CISG (EC Directive상 하자물품에 대한 매수인의 구제제도에 관한 비교연구)

  • Lee, Byung-Mun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.19
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    • pp.33-66
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    • 2003
  • This is a comparative and analytical study which comprises of the analysis of the rules of the buyer's remedies where the seller delivers defective goods of four legal systems; Directive, CISG, English law and Korean law. In light of threefold main purposes of this study, it firstly attempts to describe and analyze the remedy provisions of Directive in a comparative way in order to provide legal advice to the sellers who plans to enter into English consumer markets. It shows that the two tier remedial system under Directive is not much different from the other jurisdictions, except where the right of rescission under Directive is absolute in a sense that it does not require a certain degree of seriousness of defect. Secondly, the study compares the rules of one jurisdiction with those of other jurisdictions and evaluates the rules in light of the discipline of comparative law the basic question of which is whether a solution from one jurisdiction may facilitate the systematic development and reform of another jurisdiction. It proves the followings; (1) the reluctance and uncertainty in English law of ordering specific performance based on the discretionary power does not reflect the parties' preference because the order is either uncertain or rather negative where the purchase of substitute goods elsewhere is not a satisfactory solution in many cases; (2) the position in Korean law which has no limitation on the right to require substitute goods is likely unfair in commercial sales, but justified in consumer sales; (3) the right of termination or reduction under Directive which is subject to the applicability of the right to require repair or substitute goods seems to be contrary to the consumer's preference where the defective delivery destroys the basis of trust in the quality of the seller's performance; (4) the absolute right of termination under Directive and English law seems crucial in consumer sales because they are often inferior to commercial sellers in terms of information and bargaining power; (5) the right of reduction as a self-help remedy which is absent in English law emphasizes its usefulness. Thirdly, it finds that, where CISG is deemed to fail to unify different rules on the right to require specific performance between Civil and Common law, it is attempted once again in Directive and notwithstanding their hostility to awarding the right to require specific performance in English law, Regulations 2002 expressively stipulates such right.

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Product Liability in the Shipbuilding in the "MSC Carla" case (MSC Carla 사례상 선박의 제조물책임)

  • Seo, Jeong Woo;Jo, Jong Joo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.64
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    • pp.155-185
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    • 2014
  • Liability for the manufacture or supply of defective products can arise in two principle ways, in tort and in contract. English law has long regarded shipbuilding contract as agreement for the sale and purchase of goods. The consequence of which is that unless the Buyer and Builder agree otherwise, terms will automatically be implied into the contract between them as to the quality and performance of the completed vessel. The same principle applies to sub-contracts allied to the shipbuilding contract. On the other hand, one case decisions established that ".... a contract to build a ship, though a contract of sale of goods, has also some characteristics of a building contract", Recently the liability of a manufacturer in tort for physical damage i.e. personal injury and damage to property other than alleged to be defective is now well settled in most countries. Accordingly the Builder may face third party claims in tort more regularly than they have in the past, if the statutory implied terms have not been expressly excluded in contract. In such circumstances, it is necessary for the Builder to be prepared with counter measures to secure the stability of the vessel from its design development, building process, delivery and operation etc. The purpose of this paper is, from the case of "MSC Carla", to review product liability, jurisdiction and the initial date of extinctive prescription, then to suggest counter measures to the Builder.

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A Comparative Study on the Seller's Duty to Deliver the Goods in Conformity with the Contract (국제물품매매계약상 물품의 계약적합성 의무에 관한 비교 연구)

  • Lee, Byung-Mun
    • Korea Trade Review
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    • v.42 no.6
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    • pp.1-25
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    • 2017
  • This is a comparative and analytical study which comprises of the analysis of the rules of the seller's liability for non-conforming goods of four legal systems under the CISG and the CESL. A purpose of this study is to examine all the rules as to, first, the concept and the nature of the seller's duty to deliver the goods in conformity with the contract, second, the contents of the seller's duty to deliver the goods in conformity with the contract, third, the time when the goods must be in conformity with the contract and the cases where the seller is exempted from his liability for non-conforming goods. Another purpose is to compare the rules of the CISG with those of the CESL, and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intend to use one of those regimes in their contract as a governing law.

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A Study on the Seller's Liability under Article 42(1) of the CISG (CISG 제42조 (1)항의 매도인의 책임에 관한 소고)

  • Heo, Kwang Uk
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.60
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    • pp.47-77
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    • 2013
  • The way for seller to procure the goods for selling is to produce the goods at his own factory and to buy the manufactured goods from the other company. In order to produce the goods for selling the seller have to obtain the resource from the domestic company or overseas. In the middle of producing the goods to sell, seller may breach the right of a third party based on intellectual property rights. That is to say, seller may use the machine that has not itself been patented and use a process which has been patented by a third party. Seller may manufacture the goods which themselves are subject to the third party industrial property rights. Nowadays it is stressed the importance of intellectual property rights such as a patent, brand, and design. These factors consist of the core elements of the competitiveness of the goods. Many embedded software have been used in the various sector. So the disputes regarding to the intellectual property rights is gradually increasing in number. Article 42 of CISG defines the seller's delivery obligations and liabilities in respect to third party intellectual property rights and claims. It contains a special rule for this similar kind of defective in title, which tries to provide an proper solution to the complex problems caused by such rights and claims in international transactions. When seller will apply this clause to the business fields, there are several points to which seller should give attention. First, Intellectual property is general terms in intangible property rights, encompassing both copyright and industrial property. Which matter fall within the scope of intellectual property? The scope of intellectual property can be inferred from the relevant international conventions, which are based on broad international consensus. Second, Article 42 of CISG governs the relationship between the seller and the buyer, that is to say, questions of who has to bear the risk of third party intellectual property rights. The existence of such intellectual property rights, the remedies available and the question of acquiring goods free of an encumbrances in good faith are outside the scope of the CISG. The governing law regarding to the abovementioned matters is needed.

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A Study on the Buyer's Right of Reducing the Price in International Sale of Goods (국제물품매매에서 매수인의 대금감액권에 관한 고찰)

  • HA, Kang-Hun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.71
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    • pp.37-58
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    • 2016
  • CISG Article 50 contains the remedy of price reduction but limits it if the seller has a right to cure. Reduction of price presupposes that the seller delivers non-conforming goods, and that the buyer decides to accept them nevertheless. The remedy of price reduction differs from all other remedies provided in CISG with regard to it effects and to the time-limits. As to the time-limits, unlike Articles 46 and 49, Article 50 does not contain the element within a reasonable time. CISG imposes no period of time for his reducing the price. The buyer's right to declare a reduction of the price is expressly subject to the seller's right to remedy any failure to perform his obligations pursuant to Articles 37 and 48. The problem lies in determining from where to take the figures for comparing the value of the goods contracted and of those delivered. The price level in this place will usually determine his considerations as to resale or repair of the defective goods. The buyer must examine the goods, or cause them to be examined, within, as short a period as is practicable in the circumstances. The buyer loses the right to rely on a lack of conformity of the goods if he does not give notice to the seller specifying the nature of the lack of conformity within a reasonable time after he has discovered it or ought to have discovered it.

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Maintenance Model for Wear-Out Process Integrated with the Percent Defective and the Failure Rate (불량률과 고장률을 통합한 마모공정의 보전모형)

  • Lee, Dou-Kyung
    • Journal of Korean Society for Quality Management
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    • v.24 no.2
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    • pp.44-53
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    • 1996
  • This paper deals with the problem of selecting optimal wear limit and initial process mean in a wear-out process. Consider a material removal processing machinery where 1)there are deffective items by linear shift in the mean of the diameter of to be processed with varing process variance and 2)there can be any failure in the machine tools or to be processed. In the previous studies, the one is analyzed by 'Model of Producing Goods' in quality control area and the other, any failure, is analyzed by 'Model of Producing Services' in reliability area. We propose a new integrated maintenance model, considering the percent defective and the failure rate. A numerical example for the model is given.

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Six Sigma Campaign of Samsung Display Device (삼성전관의 6시그마 추진사례)

  • 김학수
    • Journal of Korean Society for Quality Management
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    • v.27 no.1
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    • pp.211-222
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    • 1999
  • 6 Sigma is defined as the state of "defect free quality" with only 3.4 defective, goods out of 1 million. Samsung Display Device(SDD) was quick to embark on a new way of quality innovation. The goals of 6 Sigma campaign are established on the foundation of customer satisfaction such as quality, cost and service. Production field of SDD has a special 6 Sigma campaign, SQM(Standard Quality Management). Quality qualification system is introduced and implemented with strong reinforcement. C-S-I(Chart-Solve-Implement) model which was made by Dr. Bajaria(1991) is adopted for the project. All the workers of company will be encouraged to participate in the drive.

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Data analysis of 4M data in small and medium enterprises (빅데이터 도입을 위한 중소제조공정 4M 데이터 분석)

  • Kim, Jae Sung;Cho, Wan Sup
    • Journal of the Korean Data and Information Science Society
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    • v.26 no.5
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    • pp.1117-1128
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    • 2015
  • In order to secure an important competitive advantage in manufacturing business, an automation and information system from manufacturing process has been introduced; however, small and medium enterprises have not met the power of information in the manufacturing fields. They have been managing the manufacturing process that is depending on the operator's experience and data written by hand, which has limits to reveal cause of defective goods clearly, in the case of happening of low-grade goods. In this study, we analyze critical factors which affect the quality of some manufacturing process in terms of 4M. We also studied the automobile parts processing of the small and medium manufacturing enterprises controlled with data written by hand so as to collect the data written by hand and to utilize sensor data in the future. Analysis results show that there is no deference in defective quantity in machines, while raw materials, production quality and task tracking have significant deference.