Noritasia: A Joint Venture Agreement Between Café Nori and Nestasia

Noritasia: A Joint Venture Agreement

Question 1

Paris is known for its extravagant, larger than life fashion, cuisine, living, lifestyle and architecture. They are the ones who are known for their luxury fashion and lifestyle. Considering their culture, tradition, and values even the merchandise chain of famous cafes is too extravagant here. Be it a simple McDonald’s or Starbucks.

Café Nori is a well-established coffee house in Paris and is known for its non- alcoholic beverages, their famous chocolate croissant, insta-gramble interiors, picturesque location, service and well-mannered staff. The CEO of this café is Mr. Lucas Bravo who is also a pastry chef and now he is interested in increasing his business and spread all over Paris, not only that he also wants it to be exclusive in selling his coffee and croissants which eventually became so famous that he has started customizing them. Thus, he stated looking for various and famous designers to design the cups, mugs, plates, and platters in which he shall serve the customized coffee, croissant, and chocolates.

Pernia Wadia a designer in Bombay (India) newly launched her brand ‘Nestasia’ known for premium coffee mugs, ceramic, and glass designs. In an event in Paris where Pernia’s collection was showcased known as Pernia’s Pop -up shop where Nestasia was also showcased. Lucas Bravo’s manager Luc suggested Nestasia for Café Nori’s new launch and exclusive premium custom-made luxury cutleries.

Considering the common interest in luxury, branding and authentic art team Café Nori and team Nestasia came to terms and signed an Equity Joint Venture agreement in Paris and named it as ‘Noritasia’.

Noritasia is a luxury brand and to create luxury both the companies are running out of funds.  A famous luxury brand investor who supports new luxury brands in market Mr. Antoine has invested in this new brand Noritasia.

Your Task is to list down the essential requirements of an agreement between the parties of this joint venture. If dispute arises, what shall be the legal remedy and procedure in a joint venture dispute – mention in one (1) A-4 size (not more than 500 words)                                                                                                        [10 Marks]                         

Question 2

Starkesia is a country rich in natural resources and bound by traditions ruled by various kingdoms across the length and breadth. Starkesia is situated in the Eastern portion of Asia and is surrounded by countries on three sides and has the sea on its southern side. Starkesia has six water systems running across the nation. The rivers provide fertile tracts of land fit for commercial agriculture. In the late 18the century, traders from the West came and set-up their trading posts on the southern tip of Starkesia. Gradually, the traders connived with the local chieftains and succeeded in alienating the sea from the control of Starkesia. As a result, Starkesia had to give in to the demands of paying annual tributes to the “West Traders” in order to have access to the Sea.

As time progressed, the West Traders as part of Imperialist policies expanded their control over Starkesia and there came a time when Starkesian kingdoms were reduced to a mere instrumentality and the real power and control vested with the West Traders. The West Traders controlled the expenditure and maintained an army of its own which it used to cull rebellions and quash dissent. Apart from this the West Traders also imposed heavy taxes on the citizens of Starkesia. The cumulative effect of policies of the West Traders was that Starkesia was transformed into a sterile country as wealth and prosperity flowed to country of West Traders.

Tony Toriyama was deeply affected when he saw his motherland suffering at the hands of foreigners. He decided to free Starkesia from foreign yolk and restore glory to the motherland. With this resolve he organized a movement against the West Traders and their discriminatory policies. Tony Toriyama also formed a party- Restore Glory Party (RGP) to give structure to the movement. He chose his comrade Marty Friedman to keep a close eye on the movement and the developments in the country. With the progress of time, Tony Toriyama and Marty Friedman along with the RGP freed Starkesia of foreign yolk. During the freedom struggle, differences arose between Tony and Marty which the West Traders took advantage of fully.

As West Traders were leaving, they sowed the seeds of separation and Arghland was carved out of Starkesia. Tony Toriyama being the leader of the freedom movement was elected the Prime Minister of Starkesia while Marty Friedman was elected the President of Arghland. Soon after the creation and independence of the two countries there was war in which Starkesia emerged victorious. The relations between the two countries have been sour since.

With the advent of globalization, the economy of Starkesia was opened up and the markets were liberalized. Starkesia, being a more developed country and having liberal policies and well-developed judicial system has great pride in its justice dispensation mechanism. Starkesia has great pride on its manufacturing sector and aims to become the Centre of investment by early 2040s. For this purpose, it needs a model Bilateral Investment Treaty. Before the formation of the model BIT, the Prime Minster of Starkesia wants to know the various standards of protection that must be made available to the investors. Since, Starkesia has had a rough history regarding the foreigners, Mr. Toriyama is apprehensive of giving precedence to investor state over Starkesia. As Starkesia has a well-developed justice dispensation mechanism, Mr. Toriyama believes that local courts should be given preference while determining disputes.

You are an expert in international investment law and the Ministry of Foreign Trade and Investmentof the Government of Starkesia has contacted you for advice. Your task is to prepare brief memo of not more than one (1) A-4 sized page (not exceeding 500 words) containing: –

  • Advice regarding the importance of incorporation of the standards of protection relevant for the drafting of the BIT of Starkesia. Provide this perspective from a comparative lense. [10 Marks]  
  • Advice the Prime Minsters position on taking recourse to the notion that claims of host state supersede the claims of the investor state. Advice the leader of the party regarding the validity of the notion (either for or against). Advice regarding whether claims against investors can be allowed and whether they should be allowed.                                                                                                                        [10 Marks]

Question 3

Suplex city is a third world developing country which gained independence from imperial rule in 1957. After independence, the Suplexian National Cosmopolitan Party (SNCP) established government and attempted to lead the country towards self-reliance.  However, as soon as Suplex city gained independence there was a drought which caused famine which resulted in many deaths. The SNCP, to fulfill the immediate needs of the country, imported food grains from its neighboring countries. As the conditions of famine subsided, agricultural scientists developed new varieties of food grain which made Suplex city secure in terms of food grain. Suplex city being a developing country having large tracts of fertile land and cheap labour laid the foundations of the new economic policy on agriculture and allied industries of seeds and fertilizer.

With the progress of time, the SNCP was unable to keep up with the changed aspirations of the citizens as a result the Citizens Party (CP) was elected to power.  The CP understood the change in the aspirations of the citizens and decided to open up the economy of the country and invited foreign investment from its international allies. Various sectors which were previously owned by the government (oil and natural gas, electricity, transport-road, rail and air, mining etc. were opened up for both foreign investment and for private players to invest in.

In 2005, just one year after the CP was elected to power; the stock markets across the world crashed and resulted in global depression of economies. As a result, Suplex city could not succeed in attracting a lot of investment. The Citizens party realized that for Suplex city to become a trading and investment hub, the manufacturing sector needs to be developed. With this, the economy of Suplex city was oriented towards manufacturing, the guiding principle of which was “import small export big” The idea underlying the policy was that Suplex city will import small or unfinished products and export goods utilizing the small/unfinished/useful components maintaining thereby a balance favoring the exports. This idea was to be implemented especially in the electronics and automotive engine industry. With this policy, Suplex City aims to become the hub of investment and export of the world.

With this, the Citizens Party has great belief in the judiciary of the Suplex City and it requires that the dispute redressal remains with its domestic courts when it comes to state-investor dispute settlement.

You are an expert in international investment law and the Ministry of Foreign Trade and Investmentof the Government of Suplex City has contacted you for advice. Your task is to prepare brief memo of not more than one (1) A-4 sized page (not exceeding 500 words) containing: –

  1. Advice with examples whether jurisdiction can vest with Local Courts when it comes to dispute resolution of International Investment matters with a comparative angle.                    [10 Marks]              
  2. Explanation of Monetary Transfers and the importance determining the exchange rate. Being the expert in International Investment Law you are to mention the circumstances (if any) in which Suplexian property can be expropriated.                                                                                            [10 Marks]

Specific Instructions:

  1. WORD/PAGE LIMIT: This is an individual assessment. Accordingly, on an individual basis, please prepare a brief memorandum (or advisory note) of NOT MORE THAN 2,500 words (excluding endnotes, footnotes, etc.).
  1. Each answer should be drafted in numbered or bulleted paragraph format. You do not need to provide a summary or re-statement of facts, as they are already available to the examiners. Your memo should primarily contain your assessment/analysis of the facts and any appropriate advice to the government of Atlantis.
  1. KEEP your analysis limited to the factual scenario that has already been provided. Do not ‘invent’ new facts or change available facts.
  1. USE ONLY Times New Roman font of 12-point size, with single line spacing.
  • ALL SUBMISSIONS should be in a single MS Word or PDF document.
  • If you are quoting from, or referencing, a case, article, website, book, or other external material (or any part thereof), please ensure that you cite the same appropriately (preferably as footnotes or endnotes).
  • SUBMISSION PORTAL: All submissions must be made via the UMS Portal only. Any submissions by email or by other means WILL NOT BE ACCEPTED. Your submission will be complete only when you have uploaded and submitted your final document on UMS.
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