Open Question: need help for insurance case?

Alex O’Reilly is an employee of Harrolds Inc., a British company that produces toys and is established in Munich in Germany. O’Reilly has the obligation, stated in his employment contract, to provide insurance for the company’s new trucks. The company has recently bought 20 new trucks, that the company will use to transport their goods to their customers all over Europe. As any other employee of the company, O’Reilly has the authority to reach agreements on behalf of the company, that will cost a maximum of € 10,000.- per year. Any contract that will cost the company more than that, has to be approved by the general manager before the contract is signed. O’ Reilly reaches an insurance contract with an insurance company in Spain, called Alliance Martinez. The insured sum they have agreed on is € 750,000,-. The value of the 20 trucks is € 1,000,000,- (20 x € 50,000,-). The total costs of the insurance contract for the company are € 20,000.- per year. O’Reilly forgets to ask the general manager for approval of the contract. Before the contract is signed, Alliance Martinez contacts Eric Wilson, a member of the board of directors of Harrolds Inc. Wilson informs Alliance Martinez that “all their employees are authorized to act on behalf of the company”. The next day the contract of insurance is signed by Alliance Martinez and O’Reilly, acting on behalf of Harrolds Inc. a. Has a legal agreement been reached between Harrolds Inc. and Alliance Martinez? Assume a legal agreement has been reached between Harrolds Inc. and Alliance Martinez. One day, the garage next to the office building of Harrolds Inc. is struck by lightening and cathes fire. Unfortunately all 20 new trucks were parked in that garage. As a result of the devastating fire, half of the trucks (10 in total) are completely detroyed. By some miracle, the other trucks don’t suffer any damage at all. Harrolds Inc. asks for compensation from Alliance Martinez for the trucks that were destroyed in the fire. b. How much money will Alliance Martinez have to pay to Harrolds Inc. based upon the contract of insurance? One day, Harrolds Inc. reaches an agreement with Toys ‘4U‘, a company established in Athens (Greece), about the sale of toys from Harrolds Inc. to Toys ‘4U’, which have to be delivered to a warehouse in Bucharest. Parties agree that the incoterm CPT (CPT Bucharest, incoterms 2000) will apply to their contract of sale. As a result of the devastating fire (mentioned above), Harrolds Inc. can’t transport the toys -bought by Toys ‘4U’- to Bucharest itself. Harrolds Inc. therefore reaches a contract of carriage with Raffaello Carriage, a carrier established in Napels, in Italy. Raffaello Carriage will transport the toys by truck from Munich (in Germany) to Bucharest (in Romania) and receive € 3000,- for its services. The boxes of toys are loaded into the truck and properly secured. During transport the truck driver transporting the toys, stops at a rest stop and inspects the boxes in his truck. When he discovers the boxes contain valuable toys, he comes up with a brilliant plan. He delivers a few of the boxes of toys to one of his friends, living in Romania, who runs a shabby shop. When the truck driver arrives at his destination in Bucharest the next day, he reports to the police that his truck was broken into and that a few of the boxes were stolen. Unfortunately for the truck driver, the Romanian police soon discovers that the story told by the truck driver doesn’t add up, since there are no signs of burglary. The truck driver confesses his sins to the police. However, he’s not worried that his boss (Raffaello Carriage) will now be held liable for the ‘ loss’ of the boxes of toys, because Raffaello has exluded all liability for all acts imaginable. The United Kingdom, Greece, Germany and Italy are all contracting states of the CMR Convention. Romania is not. c.does the CMR Convention apply to this contract of carriage? d.is the carrier (Raffaello Carriage) liable for the loss of the toys, knowing that the carrier has excluded all liability? e.To whom is Raffaello Carriage liable (in other words, to whom does he have to pay compensation for the loss of the boxes of toys)? Suppose Harrolds Inc. (the seller) and Toys ‘4U’ (the buyer) had agreed that payment would be made by way of a Letter of Credit. Toys ‘4U’ instructs his bank (Hapoalim Shin Bet in Jerusalem in Israel) to open a Letter of Credit. After opening the Letter of Credit, Hapoalim Shin Bet informs the bank of Harrolds Inc. in Munich (‘Münchener Sparkasse”) that a Letter of Credit has been opened with Harrolds Inc. as the beneficiary. The Münchener Sparkasse confirms the Letter of Credit and informs Harrolds Inc. that a Letter of Credit has been opened for the company. Unfortunately Toys ‘4U’ is struct hard by the recent economic crisis and goes bankrupt, before it has had the chance of paying for the toys delivered by Harrolds Inc. Hapoalim Shin Bet also suffers