Olivetone Inc., a Florida corporation, manufactures and sells suntan products. Through its website Olivetone sells its products in bulk to a company in Finland, which then distributes and sells the Olivetone products to Swedish companies for retail sale to Swedish consumers. Both Finland and Sweden are in the European Union, but the United States is not. Should a dispute arise and Olivetone is sued, whose law will apply?

Question

Social Studies

Colt Gay

5 September, 14:09

Olivetone Inc., a Florida corporation, manufactures and sells suntan products. Through its website Olivetone sells its products in bulk to a company in Finland, which then distributes and sells the Olivetone products to Swedish companies for retail sale to Swedish consumers. Both Finland and Sweden are in the European Union, but the United States is not. Should a dispute arise and Olivetone is sued, whose law will apply?

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Answers (1)

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Paul Christensen · Answer 1

The U. S law will apply

Explanation:

In international trade like this, business operate under the country of Origin rules. This rules dictates that when dispute arises between two companies with different country of origin regarding a product or service, the law that will apply will be the law from where the product or service is originated.

Take a look at this sentence from the excerpt:

Olivetone Inc., a Florida corporation, manufactures and sells suntan product

Since we know that Olivetone is the one that manufacture the product, the product or service is originated from United States. This mean that their dispute will be regulated under the U. S law.