Legal Question in International Law in Brazil

Liability of international manufacturers for defective product.

I work for a company that imports furniter from other countries, current problem is with companies in Brazil. We placed an order for a customer of ours with a few companies in Brazil. These companies made the product and shipped it to our customer. We paid for the product, they would not ship unless we paid them. Our customer received the product and rejected it due to quality issues (cracks in wood, discoloration, etc.) Our customer of course did not pay us due to quality of the product. Now the Brazil companies are refusing to make good on the product, either financialy or replacing the product. Do we have any legal ability to force them to do something? Do they have any liability?


Asked on 8/08/03, 10:21 am

2 Answers from Attorneys

Denis Borges Barbosa Borges, Beildeck & Medina

Re: Liability of international manufacturers for defective product.

Dear Sirs,

In response to your question regarding Brazilian Law we must inform you that you are granted protection but more information and the agreements related must be analyzed. We may advance you the following information:

1. If the final customer will be demanding the values, the Customer Defense Code will apply and as so: (i) the customer that buys without seeing the final product has seven days from the receiving to complain; (ii) he may complain about any vices of the product requiring either substitution of the product, devolution with eventual losses and damages. Nevertheless there is certain date issues that must be analyzed in order to verify if the term is still valid for any possible legal suits.

2. If only your firm will be demanding possible reimbursement, there is another term where the demand is valid (30 days) and the civil code will apply.

At your entire disposition,

Sincerely,

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Answered on 8/18/03, 3:34 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Liability of international manufacturers for defective product.

You could retain a Brazilian lawyer to sue them in a Brazilian court or, if the companies have sufficient contacts with the Commonwealth of Virginia, you could initiate such suit here, and, hopefully, obtain a judgment against them.

That judgment could then be used to attach any assets which the companies may have in the United States. If they have none, and their only assets are in Brazil, there is, probably, only a slim possibilty that the Virginia judgment would be recognized as enforceable through Brazilian judicial process.

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Answered on 8/09/03, 11:34 am


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