MagNet Is a U

question 38

Essay

MagNet is a U.S.company based in Utah.It is negotiating to sell $4 million worth of computer goods to a French company,L'la.MagNet's attorney suggests that payment be by a letter of credit.What is a letter of credit and why does MagNet's attorney recommend payment by letter of credit?

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Definitions:

Defendant

An individual, company, or institution sued or accused in a court of law.

Civil Lawsuit

A legal proceeding initiated by one party against another over a civil matter, such as contracts, torts, or property disputes.

Criminal Prosecution

The process by which a person is charged, tried, and possibly convicted by the judicial system for a crime.

Mediation

A type of dispute resolution where the parties to a lawsuit meet with a neutral third party (the mediator) in an effort to settle the case. The mediator’s job is to listen to the evidence, help the litigants come to understand each other’s viewpoint regarding the controversy, and then facilitate the negotiation of a voluntary resolution to the case. Mediation is not binding on the parties.