Assignment Task :

Continental Trade Ltd

Continental Trade Ltd (CT) is a French organic food producer of a delicious and healthy veggie-burger and distributor of quality fruits and vegetables to all EU countries. The veggie-burger is sold in large quantities in France packaged as `all organic`. CT would like to import their burgers into Germany. Germany has recently banned the import of all non-meat-based burgers after a health scare in which ten children contracted salmonella from eating vegetable-based burgers. The German producers have been required to include warnings on their products emphasizing that the burgers must be fully heated through before eating. Additionally, German rules require that organic products must not contain artificial preservatives. Veggie- burgers manufactured by CT do not contain any artificial preservatives. According to German standards organic products may only be sold as organic in licensed organic- shops. These shops tend to be small and mainly sell locally-produced products. In recent months the German government also imposed a higher tax on grapes and all grapes-based products. There was no justification given for this increase. Subsequently, CT’s sells of grapes to Germany dropped by 50%.

The management of CT are considering the possibility of opening up an additional distribution centre in a European country. In the medium to long-term, this objective would enable them to consolidate and build upon any increase in exports.  Before this rather ambitious business objective can be realized, CT is thinking about entering a business agreement with a distributor in Latvia who is looking to expand its fruit distribution. CT is proposing to send a group of key employees to Latvia to meet the Latvian distributor and establish a working relationship. The aim is to swap business knowledge and for CT to become familiar with Latvian business practices. Ultimately, CT would like to open their own distribution centre in Latvia.

CT’s legal advisers have been in contact with the Latvian company but there seems to be some confusion about the relevant legal principles and whether CT can actually send a group of employees to work in Latvia. A number of CT’s employees have family and children of school age. At least one is married to a non-European national.

In recent months it has been brought to the attention of the management of the CT that WAX 10 which is used for spraying fruits and vegetables is highly toxic and has caused respiratory problems for many employees in the UK distribution centre in St Albans. CT did not supply their employees with any information concerning the hazards of this wax. The management of CT are convinced that there is no legal requirement under the UK law to provide their workers with the detail information on this particular type wax or issue them with the protective equipment. It seems that there is a directive adopted by the Council of the European Union that required Member States to take measures before 20 September 2015 to ensure that employers provide employees who handle specific hazardous substances with sufficient information to enable them or their representatives to decide if they wish to work with these substances at all.  WAX 10 is one of the substances mentioned in the directive. The UK government has not taken any steps to implement the directive.

London Brewery plc (a subsidiary of CT) is an English company that markets itself as brewing ‘real ale’ from only the finest, natural ‘organic’ ingredients. So far, its market has been a somewhat limited, specialist and very small one in the UK, although the quality of their product is recognized as being available from very few other British brewers. It is now seeking to exploit a recent fashion on the continent for all things British by expanding its outlets to France and Germany.

As a consequence, it is negotiating a distribution agreement with two other equally small continental companies: De Grande SA and Walt GmbH, a French company and a German company respectively. The negotiations have produced a draft agreement that contains a list of terms to which all parties are prepared to agree. The agreed terms include that London Brewery plc will not appoint any other  business to sell their beer in France and Germany, it will not sell beer to French or German customers respectively, De Grande SA and Walt GmbH will not sell to any customers outside France and Germany, will not advertise for business outside Germany and France and will sell beer at the prices fixed by London Brewery plc.

As the newly appointed legal advisor, you have been asked to give your legal advice on the issues addressed in the case study and to advise some of the parties.

You are reminded that you must refer to relevant legislation and case law (EU) in your answers and to reference sources used.

Section A: You are required to answer ONE question.

Question 1

Analyse the relevant law and advise Continental Trade Ltd whether European law will enable them to import their goods into the German market and compete effectively with German producers.

Question 2

Explain the relevant law and advise Continental Trade Ltd on the legal position with regard to its employees moving to Latvia to work.

Question 3

Examine the relevant principle of EU law and advise Continental Trade Ltd as to whether their employees have any remedies under European law in relation to the hazards posed by WAX 10.

Question 4

Explain on the relevant law and advise London Brewery plc (subsidiary of Continental Trade Ltd) on whether the concluded agreement with De Grande SA and Walt GmbH complies with European law.

 

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  • Posted on : July 02nd, 2019

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