On The Right To Refuse To Accept The Goods

With the drawing near of the date of China's entry to WTO, China's export and import volume has been substantially increased for the past year and it will keep increasing in the foreseeable future. China will also play a more and more important role in international economy. Therefore, it is of great importance to exercise the right of " rejection" properly to both Chinese importers and exporters . Moreover, a large number of cases showing that lots of Chinese goods were rejected at abroad in the past years and hence a lot of losses has been suffered. Based on the past five years international trade practicing experience , by comparing the relevant stipulations on "rejection" of British law, American law and "United Nations Convention on Contracts for the International Sale of Goods(Viena, 1980)(1980's Convention for short), combining the practices of international sales, the author offers his comments and solutions on the difficult situations which Chinese importers and exporters faced in the past years, and also gives his suggestion on China's legislation.In first part of the essay the author introduced the relevant descriptions of "rejection" of British Law, American law and "1980's Convention".It is clearly stipulated in "Sales of Goods Act 1979" that the buyer has the right of "Partial rejection"(Art. 35A). However, British contract law mainly distinguishes the contract terms "Condition" from "Warranty" in general. The point of the distinguishing is, should the seller breach the "Condition", the buyer has the right to terminate the contract and claim damages. Should the seller breach the "warranty" only, the buyer can only claim damages and can not reject the goods. The British law has its own rules in telling what is conditions from what is warranties.The American law is by far the most detailed law on stipulations of "rejection". UCC not only stipulates the objective standard to exercise the right of rejection, but also covers the procedures to exercise such right and the obligations the parties bearing in the case of rejection. UCC also distinguishes the right of rejection from the right of revocation of acceptance. The buyer who exercises the right of revocation of acceptance enjoys the same position as the buyer who exercise the right of rejection from the point of view of legal results.There is not a concept or term called "rejection" in "1980's Conventions". Instead, it stipulates that the party has the right to avoid the contract should the other party fundamentally breach the contract. Apparently such stipulations are the compromised results of British-American legal system and continental legal system.The author introduced how buyers can exercise the right of rejection properly and the situations where the buyer may lose the right of rejection in the second part of the essay.Although the right of rejection is a very important legal right of buyers and in fact it could help the buyers to avoid some troubles and even can help the buyers to speculate sometimes. Should the buyers are not able to exercise the right properly, the buyers risks greatly in losing such right. By summarizing the general principles from the British and American precedent cases. The author pointed that the proper way of exercising the right of rejection as well as the situations under which the buyers may lose their right of rejection in international trade practices. According to the general principles, in order to exercise the right of rejection properly, the buyers should make their decision to reject within reasonable time after they know or they should know they are entitled to do so. Such intention of rejection should be clearly and unequivocally intimated to the seller and the goods should be put at the disposal of the seller at the same time. On the contrary, should the buyer can not meet such three requirements, the buyer may lose the right of rejection.The effects of rejection on the buyers and sellers and the countermeasures to be taken are introduced in the third part of...