1、chapter four,terms of commodity,seib of gdufs,2,learning objectives,after reading this chapter you should be able to explain the different ways of quality stipulation outline the quantity measurement units and systems describe the approaches to weight calculation understand the functions and feature

2、s of different types of export packaging identify marking on the packing of goods for international sales compose quality, quantity and packing clauses properly,seib of gdufs,3,4.1 name of commodity,significance cisg article 35: the seller must deliver goods which are of the quantity, quality and de

3、scription required by the contract and which are contained or packaged in the manner required by the contract issues concerning stipulating name in sales contract: being clear, specific& precise being practical adopting the widely accepted name (hs code),seib of gdufs,4,4.2 quality,definition: refer

4、s to the intrinsic elements of commodities including the internal properties or ingredients as well as the external appearance.,seib of gdufs,5,4.2 quality: ways of quality stipulation,seib of gdufs,6,4.2 quality stipulation sale by description,specification comprise some important indicators such a

5、s composition, content, purity, length, size, etc. example china sesame seed moisture: 8% max. admixture: 2% max. oil content: 52% basis,seib of gdufs,7,4.2 quality stipulation sale by description,sale by grade be indicated simply by stating its grade, as presumably the seller and the buyer are supp

6、osed to have reached a consensus on the classification implication of grades. to avoid misunderstanding and the subsequent disputes, however, it is recommended to lay down some major specifications,seib of gdufs,8,4.2 quality stipulation sale by description,sale by grade: example fresh hen eggs, she

7、ll light brown and clean, even in size grade aa: 60-65gm per egg grade a: 55-60gm per egg grade b: 50-55gm per egg grade c: 45-50gm per egg,seib of gdufs,9,4.2 quality stipulation sale by description,sale by standard when specifications or grades are laid down and proclaimed in a unified way, they b

8、ecome standards. example tetracycline hcl tablets (sugar coated) 250mg. b. p. 1973 china northeast soybean 2006 new crop, f. a. q: moisture 15% max. admixture 1% max.,seib of gdufs,10,4.2 quality stipulation sale by description,sale by standard: f.a.q. & g.m.q f.a.q.: indicating that the quality of

9、the a product offered is about equal to the average quality level of the same crop within a certain period of time (e.g. a year.) generally suitable for agricultural products. g.m.q.: the quality of the goods offered are sufficiently good to satisfy the purposes for use or consumption which are mutu

10、ally understood by the buyer and the seller used sometimes as the bottom-line of quality requirement.,seib of gdufs,11,4.2 quality stipulation sale by description,sale by brand name or trade mark to define the quality of some products by simply referencing to their brand names or trademarks. example

11、s sony televisions haier refrigerators tigerhead batteries panasonic television, th-42pv65c,seib of gdufs,12,4.2 quality stipulation sale by description,sale by origin to use the name of the place of origin as the indication for quality example west-lake longjing tea, grade 1, zhejiang origin,seib o

12、f gdufs,13,4.2 quality sale by description,sale by descriptions or illustrations specific descriptions, sometimes with illustrations example panasonic television, th-42pv65c, quality and technical data to be strictly in conformity with the instructions attached. haier refrigerator, model xxx ,qualit

13、y and technical data to be strictly in conformity with the descriptions submitted by the seller.,seib of gdufs,14,4.2 quality stipulation sale by sample,sale by sample definition: a sale when the seller and buyer agree that sample is used as the basis of quality and condition of the goods to be deli

14、vered. example teddy bear size 15, quality as per sample x071118a,seib of gdufs,15,4.2 quality stipulation sale by sample,sale by sellers sample made on the basis of the sample provided by the seller sale by buyers sample made on the basis of the sample provided by the buyer sale by counter sample c

15、ounter sample: a replica made by the seller of the sample provided, normally by the buyer counter sample used as the basis for quality to remove the risk of the seller a good substitute to sale by buyers sample,seib of gdufs,16,4.2 quality,issues concerning quality clause in sales contract: adopting

16、 the right way avoiding double standard being clear, practical and reasonable making use of quality latitude or tolerance making price adjustment when necessary inserting sellers protecting clause when necessary,seib of gdufs,17,4.2 quality,quality latitude: definition the permissible range within w

17、hich the quality of the goods delivered by the seller may be flexibly controlled quality tolerance: definition the quality deviation recognized in the trade, which allows the quality of the goods delivered by the seller to have certain differences within a range,seib of gdufs,18,4.2 quality,how to s

18、tipulate quality latitude/tolerance to stipulate a certain scope, e.g. the width of the cotton cloth is 47/48 inches. to stipulate “max” or “min” e.g. moisture: 8% max. admixture: 2% max. to stipulate more or less e.g. ducks down content 18%1%,seib of gdufs,19,4.2 quality,stipulating quality latitude: examples “quality shall be about equal to the sample” “quality is nearly the same as the sample” “the quality of the goods shipped to be about equal to the sample” “shipment shall be similar to the sample.”,seib of gdufs,20,4.2 quality,safeguard clause: examples “it is the buyer rather than