Company A has its place of business in China and Company B has its place of business in Japan. ...

The first problem is that the oral contract is invalid and Company B can reject the goods.

As the competent court of CISG, China has expressed reservations about article 1, paragraph 1 (b), article 1 1 and articles related to article1CISG. Therefore, the establishment of an oral contract is not recognized.

The second problem is that Company B should collect the goods, pay the price and compensate for the losses caused by the rejection.

The CISG does not apply. China is governed by the law of the place where the court is located, that is, the law of China. Apply the Contract Law of People's Republic of China (PRC) to recognize the validity of oral contracts.