《国际商法(双语版)》章节练习题及答案

Chapter1

Exercises

PartITrueorFalseStatements.Decidethefollowingstatementstobetrueorfalseandexplain.

1.Toresolveaninternationalcommercialdispute,thepartiesmustfirstlysubmitittoarbitration.

2.Ifthepartydidnotobtainasatisfactoryawardthroughmediation,he/shemaycontinuetobringthesamedisputetoacourtwithjurisdictionforresolution.

3.AccordingtothelawsofChina,anarbitrationclausetakingtheformofe-mailisdeemedtobeinvalid.

4.Ifthecontract,whichcontainsthearbitrationclause,isinvalidasawholeforareasonunrelatedtothearbitrationclause,thearbitrationclausethenisinvalidandpartiescannotresorttoarbitration.

5.AcourtofChinamayrefusetoenforceaforeignarbitralawardrenderedbyAmericanArbitrationAssociationonthebasisthattheawardcontradictsthepublicpolicyofChina.

6.Anarbitrationagreementmustbemadebeforeadisputearisingbetweentheparties.

7.Arbitrationproceedingsareusuallypubliclyheld.Thepubliccanhaveanaccesstoarbitrationhearing.

8.ChinawillnotapplytheNewYorkConvention(1958)totherecognitionandenforcementofarbitralawardsrenderedintheterritoryofanon-contractingstate.

9.Arbitrationawardsarefinalandbinding.Incasethatanawardisnotvoluntarilyobeyedbythelosingparty,thearbitrationinstitutioncanenforcetheawardbyitself.

10.AcontractingstateofNewYorkConvention(1958)canrefusetorecognizeandenforceaforeignarbitralawardrenderedinanothercontractingstateonthegroundthatthearbitratorstookbribery.

PartIIChapterQuestions.Discussandanswerthefollowingquestionsaccordingtowhatyouhavelearnedinthischapter,andyouareencouragedtouseyourownwords.

1.Howmanymethodsofdisputeresolutionininternationalcommercialtransactions?Givethelist.

2.HowdoyouunderstandtherelationshipbetweenADRandarbitration?

3.Whatistheessentialdifferencebetweenmediationandarbitration?

4.Whataretheadvantagesanddisadvantagesofresolvinginternationalcommercialdisputesbyarbitration?

5.SupposetwopartiestoasalescontractagreetosubmitanydisputearisingfromperformanceofthecontracttoChinaInternationalEconomicandTradeArbitrationCommission.Trytodraftthearbitrationclauseforthem.

6.Howwouldachoiceoflawclauseinthecontracthelptoaddresssomeofaparty’sconcern?

7.InaccordancewiththeNewYorkConvention(1958),whatarethegroundsunderwhichrecognitionandenforcementofforeignarbitralawardsmayberefused?

8.WillaChinesecourtenforceaMexicojudgmentdealingwithaloanagreementonapromissorynoteifthenotecontradictstherelevantprovisionsinNegotiableInstrumentLawofChina?SupposethereisnotreatyinthisaspectbutreciprocitybetweenChinaandMexico.

9.Comparedwithsettlingdomesticbusinessdisputesthroughlitigation,whatlegalproblemsmayarisefromsettlinginternationalbusinessdisputesinsuchaway?

10.Doyouagreewiththestatementthatarbitrationisabettermethodforsettlinginternationalcommercialdisputescomparedwithlitigation?

PartIII.CaseProblems.Analyzethefollowingcasesbyapplyingthelegalrulesyouhavelearnedinthischapter.

YouhavestartedasmallHi-techcompanyinGuangzhou,China.Yourcompetitor,acorporationbasedinNewYorkisusingyourtradesecretsandyourpatentswithoutyourpermissionorpayment,whichhasvaporizedyourgreatfortune.Howwillyouacttostopitandgetcompensation?Explain.

Youareanin-housecounselforalargelypubliclytradedcompanycalledMircrohard.YourcompanybasedinBeijingisnegotiatinganinvestmentcontractwithgovernmentsofBrazilforstartingsomenewplantsmanufacturinghardwarethere.Areyouinterestedinincludinganarbitrationclauseinthecontract?Whataretheplussesandminusesofsuchaclause?

PartIV.Furtherreading.ThefollowingisanexcerptofUNCITRALMODELLAWONINTERNATIONALCOMMERCIALLAW(1985).

CHAPTERIII.COMPOSITIONOFARBITRALTRIBUNAL

Article10.Numberofarbitrators

(1)Thepartiesarefreetodeterminethenumberofarbitrators.

(2)Failingsuchdetermination,thenumberofarbitratorsshallbethree.

Article11.Appointmentofarbitrators

(1)Nopersonshallbeprecludedbyreasonofhisnationalityfromactingasanarbitrator,unlessotherwiseagreedbytheparties.

(2)Thepartiesarefreetoagreeonaprocedureofappointingthearbitratororarbitrators,subjecttotheprovisionsofparagraphs(4)and(5)ofthisarticle.

(3)Failingsuchagreement,

(a)inanarbitrationwiththreearbitrators,eachpartyshallappointonearbitrator,andthetwoarbitratorsthusappointedshallappointthethirdarbitrator;ifapartyfailstoappointthearbitratorwithinthirtydaysofreceiptofarequesttodosofromtheotherparty,orifthetwoarbitratorsfailtoagreeonthethirdarbitratorwithinthirtydaysoftheirappointment,theappointmentshallbemade,uponrequestofaparty,bythecourtorotherauthorityspecifiedinarticle6;

(b)inanarbitrationwithasolearbitrator,ifthepartiesareunabletoagreeonthearbitrator,heshallbeappointed,uponrequestofaparty,bythecourtorotherauthorityspecifiedinarticle6.

(4)Where,underanappointmentprocedureagreeduponbytheparties,

(a)apartyfailstoactasrequiredundersuchprocedure,or

(b)theparties,ortwoarbitrators,areunabletoreachanagreementexpectedofthemundersuchprocedure,or

(c)athirdparty,includinganinstitution,failstoperformanyfunctionentrustedtoitundersuchprocedure,

anypartymayrequestthecourtorotherauthorityspecifiedinarticle6totakethenecessarymeasure,unlesstheagreementontheappointmentprocedureprovidesothermeansforsecuringtheappointment.

(5)Adecisiononamatterentrustedbyparagraph(3)or(4)ofthisarticletothecourtorotherauthorityspecifiedinarticle6shallbesubjecttonoappeal.Thecourtorotherauthority,inappointinganarbitrator,shallhavedueregardtoanyqualificationsrequiredofthearbitratorbytheagreementofthepartiesandtosuchconsiderationsasarelikelytosecuretheappointmentofanindependentandimpartialarbitratorand,inthecaseofasoleorthirdarbitrator,shalltakeintoaccountaswelltheadvisabilityofappointinganarbitratorofanationalityotherthanthoseoftheparties.

Article12.Groundsforchallenge

(1)Whenapersonisapproachedinconnectionwithhispossibleappointmentasanarbitrator,heshalldiscloseanycircumstanceslikelytogiverisetojustifiabledoubtsastohisimpartialityorindependence.Anarbitrator,fromthetimeofhisappointmentandthroughoutthearbitralproceedings,shallwithoutdelaydiscloseanysuchcircumstancestothepartiesunlesstheyhavealreadybeeninformedofthembyhim.

(2)Anarbitratormaybechallengedonlyifcircumstancesexistthatgiverisetojustifiabledoubtsastohisimpartialityorindependence,orifhedoesnotpossessqualificationsagreedtobytheparties.Apartymaychallengeanarbitratorappointedbyhim,orinwhoseappointmenthehasparticipated,onlyforreasonsofwhichhebecomesawareaftertheappointmenthasbeenmade.

Article13.Challengeprocedure

(1)Thepartiesarefreetoagreeonaprocedureforchallenginganarbitrator,subjecttotheprovisionsofparagraph(3)ofthisarticle.

(2)Failingsuchagreement,apartywhointendstochallengeanarbitratorshall,withinfifteendaysafterbecomingawareoftheconstitutionofthearbitraltribunalorafterbecomingawareofanycircumstancereferredtoinarticle12(2),sendawrittenstatementofthereasonsforthechallengetothearbitraltribunal.Unlessthechallengedarbitratorwithdrawsfromhisofficeortheotherpartyagreestothechallenge,thearbitraltribunalshalldecideonthechallenge.

(3)Ifachallengeunderanyprocedureagreeduponbythepartiesorundertheprocedureofparagraph(2)ofthisarticleisnotsuccessful,thechallengingpartymayrequest,withinthirtydaysafterhavingreceivednoticeofthedecisionrejectingthechallenge,thecourtorotherauthorityspecifiedinarticle6todecideonthechallenge,whichdecisionshallbesubjecttonoappeal;whilesucharequestispending,thearbitraltribunal,includingthechallengedarbitrator,maycontinuethearbitralproceedingsandmakeanaward.

Article14.Failureorimpossibilitytoact

(1)Ifanarbitratorbecomesdejureordefactounabletoperformhisfunctionsorforotherreasonsfailstoactwithoutunduedelay,hismandateterminatesifhewithdrawsfromhisofficeorifthepartiesagreeonthetermination.Otherwise,ifacontroversyremainsconcerninganyofthesegrounds,anypartymayrequestthecourtorotherauthorityspecifiedinarticle6todecideontheterminationofthemandate,whichdecisionshallbesubjecttonoappeal.

(2)If,underthisarticleorarticle13(2),anarbitratorwithdrawsfromhisofficeorapartyagreestotheterminationofthemandateofanarbitrator,thisdoesnotimplyacceptanceofthevalidityofanygroundreferredtointhisarticleorarticle12(2).

Article15.Appointmentofsubstitutearbitrator

Wherethemandateofanarbitratorterminatesunderarticle13or14orbecauseofhiswithdrawalfromofficeforanyotherreasonorbecauseoftherevocationofhismandatebyagreementofthepartiesorinanyothercaseofterminationofhismandate,asubstitutearbitratorshallbeappointedaccordingtotherulesthatwereapplicabletotheappointmentofthearbitratorbeingreplaced.

CHAPTERIV.JURISDICTIONOFARBITRALTRIBUNAL

Article16.Competenceofarbitraltribunaltoruleonitsjurisdiction

(1)Thearbitraltribunalmayruleonitsownjurisdiction,includinganyobjectionswithrespecttotheexistenceorvalidityofthearbitrationagreement.Forthatpurpose,anarbitrationclausewhichformspartofacontractshallbetreatedasanagreementindependentoftheothertermsofthecontract.Adecisionbythearbitraltribunalthatthecontractisnullandvoidshallnotentailipsojuretheinvalidityofthearbitrationclause.

(2)Apleathatthearbitraltribunaldoesnothavejurisdictionshallberaisednotlaterthanthesubmissionofthestatementofdefense.Apartyisnotprecludedfromraisingsuchapleabythefactthathehasappointed,orparticipatedintheappointmentof,anarbitrator.Apleathatthearbitraltribunalisexceedingthescopeofitsauthorityshallberaisedassoonasthematterallegedtobebeyondthescopeofitsauthorityisraisedduringthearbitralproceedings.Thearbitraltribunalmay,ineithercase,admitalaterpleaifitconsidersthedelayjustified.

(3)Thearbitraltribunalmayruleonapleareferredtoinparagraph(2)ofthisarticleeitherasapreliminaryquestionorinanawardonthemerits.Ifthearbitraltribunalrulesasapreliminaryquestionthatithasjurisdiction,anypartymayrequest,withinthirtydaysafterhavingreceivednoticeofthatruling,thecourtspecifiedinarticle6todecidethematter,whichdecisionshallbesubjecttonoappeal;whilesucharequestispending,thearbitraltribunalmaycontinuethearbitralproceedingsandmakeanaward.

Article17.Powerofarbitraltribunaltoorderinterimmeasures

Unlessotherwiseagreedbytheparties,thearbitraltribunalmay,attherequestofaparty,orderanypartytotakesuchinterimmeasureofprotectionasthearbitraltribunalmayconsidernecessaryinrespectofthesubject-matterofthedispute.Thearbitraltribunalmayrequireanypartytoprovideappropriatesecurityinconnectionwithsuchmeasure.

Chapter2

Exercises

PartI.TrueorFalseStatements.Decidewhetherthefollowingstatementsaretrueorfalseandexplainwhy.

1.Internationallawisnotenactedbyanationallegislativebody.Insteaditconsistsofrulesthatcountriesagreetofollow.

2.LexMercatoriaorlawmerchant,formedinmedievalEurope,wasawrittenlawandenforcedbystates.

3.Internationalbusinesscustomsandusagesarenotbindingonpartiesunlessthepartieshaveincorporatedtheminthecontract.

4.UNCITRALModelLawonInternationalCommercialArbitrationisaninternationaltreaty.

5.TheICCandtheUNCITRALarenongovernmentalorganizationswithatasktounifyingthenationallawoninternationalbusinesstransactions.

6.TheWTOisasetofrulesgoverningglobaltrade,aforumformultinationaltradenegotiation,atribunalfordisputesettlementandaninstitutiontoreviewtradepolicies.

7.Theinternationaltreatiesandconventionshaveunifiedtherulesandnormsgoverninginternationalbusiness,thusnationallawplaysalittleroleininternationalbusinesslaw.

8.Internationalbusinesscustomsandusagestaketheformofbeingoralratherthaninwriting

9.WithintheEU,ifthelawofamemberstateisregardedtobeagainsttheECTreaty,theEuropeanCommissionwillinitiatealawsuitintheEuropeanCourtofJusticetoenforcethememberstatetobringitslawintoconformitywiththeECTreaty.

10.TheInternationalCourtofJusticecansettlethedisputesarisingfrominternationalsaleofgoodsbetweentwocompanies.

PartII.ChapterQuestions.Discussandanswerthefollowingquestionsaccordingtowhatyouhavelearnedinthischapter.Youareencouragedtouseyourownwords.

Howdoesinternationallawdifferfromnationallaw?

Whatisinternationalbusinesslaw?Howdoyouunderstanditsuseforinternationalbusiness?

UnliketheotherIGOs,theEUhasasupranationalpower.Howwillyouunderstanditssupranationalnature?CanyoufindanyotherorganizationthatparalleltotheEUinthisaspect?

What’syourunderstandingonthestatementthatIncotermsisnotlawbutimportanttotheinternationalbusiness?

WhatarethefourbasicfunctionsoftheWTO?

Howdoyouunderstand“treaty”?Nameatreatyregulatinginternationalbusinesstractions.

Giveanexampleofinternationalbusinesscustomsandusagesanddiscusshowitdifferfromaninternationaltreaty？

Giveanexampleofinternationalmodellaw,anddiscusstheuseofitforinternationalbusiness.

WhatistheroleoftheInternationalChamberofCommerceinpromotinginternationalbusiness?

BrieflytalkaboutthestructureoftheWTO?

PartIII.Caseproblems

ColoradoFuelsoldcausticsodatoabuyerinBombayunderaninternationalsalescontractinwhichatradetermofCIFisused.Andthecontractcontainsastatement“AllthetradetermsinthiscontractshallbeinterpretedaccordingtotheIncoterms2010.”Thesodawasfullyloadedaboardashipwhenalaborstrikemadeitimpossibleforthevesseltosail.Asaresult,thesodaarrivedinBombay6monthslate.Thebuyersuedforthelateshipment.

WasColoradoFuelliablefordamages?

DoesitmatterthatColoradoFuelhaveknownthatalaborstrikewasimminentwhenloadingthegoods?

PartIV.FurtherReading

Thelegalframeworkofinternationalbusinesslawconsistsoflawsandpoliciesfromallcountriesengagedininternationalcommercialactivity.Earlytradecustomscenteredaroundthelawoftheseaandprovided,amongotherthings,forrightsofshippinginforeignports,salvagerights,andfreedomofpassage.DuringtheMiddleAges,internationalprinciplesembodiedinthelexmercatoria(lawmerchant)governedcommercialtransactionsthroughoutEurope.Althoughlawsgoverninginternationaltransactionsweremoreextensiveinsomecountriesthanothers,thecustomsandcodesofconductcreatedaworkablelegalstructurefortheprotectionandencouragementofinternationaltransactions.

Theothermainsourcesofinternationalcommerciallawarethelawsofindividualcountries,thelawsembodiedintradeagreementsbetweenoramongcountries,andtherulesenactedbyaworldwideorregionalorganization—suchastheUnitedNationsortheEuropeanUnion.Countriesimproveeconomicrelationsthroughtradeagreementsthatcoveravarietyofpotentialcommercialproblems.Thishelpstheinvestmentandtradeclimatesamongcountries.Forexample,theNorthAmericanFreeTradeAgreement(NAFTA)isatreatythatwasratifiedbythelegislaturesinCanada,Mexico,andtheU.S.andwentintoeffectin1994.Itreducesoreliminatestariffsandtradebarriersamongthosenations.Althoughsometariffswereeliminatedimmediately,manyarephasedoutthroughtheyear2009.Theindustriesmostaffectedincludeagriculturalproducts,automobiles,pharmaceuticals,andtextiles.NAFTAincludesavarietyofissuesnotusuallyfoundintradeagreements,suchasprotectionofintellectualpropertyandtheenvironment,andthecreationofspecialpanelstoresolvedisputesinvolvingunfairtradepractices,investmentrestrictions,andenvironmentalissues.

Thereisnointernationalregulatoryagencyorsystemofcourtsuniversallyacceptedforcontrollinginternationalbusinessbehaviororresolvinginternationalconflictsamongbusinessesorcountries.Internationallawcanbeenforcedtosomedegreethrough(1)internationalarbitration,(2)thecourtsofanindividualcountry,or(3)theInternationalCourtofJustice.CertaindisputesmaybetakentotheInternationalCourtofJustice(ICJ)forresolution.TheICJisheadquarteredatTheHague,Netherlands,andisapartoftheUnitedNations.OnlycountrieshavestandingtogobeforetheCourt;individualsandbusinesseshavenostandingtoinitiateasuit.Thecountriesdecidewhethertopursueclaimsonbehalfoftheircitizens.ICJdecisionsprovidingmonetaryjudgmentsorinjunctivereliefmaybereferredtotheUnitedNationsSecurityCouncilforenforcement.However,thedecisionsoftheabovetribunalsinresolvinginternationalbusinessdisputescanbeenforcedonlyifthecountriesinvolvedagreetobeboundbythem.

Chapter3

Exercises

PartI.TrueorFalseStatements:DecidewhetherthefollowingstatementsareTrueorFalseandexplainwhy.

1.Commonlawandcivillawsystemssharenosimilarityandtotallydifferfromeachother.

2.Civillawsystemischaracterizedbytheuseofdetailedlegalcodesanddecisionsmadebythejudgesarenottreatedasprecedents.

3.Nowadayscommonlawconsistsofcaselawandstatutes,andincaseofdiscrepancybetweencaselawandstatutes,theformerwillprevail.

4.Internationaltreatiesarethemostimportantsourceofinternationalbusinesslawandnationallawplaysalittleroleinregulatinginternationalbusinesstransactions.

5.UndertheContractLawofChina,acontractmustbemadeinwrittenform,otherwiseitwillbenotvalid.

6.SincetheUnitedStateshasbeenacontractingstatetoCISGsince1988,formanyinternationalsalesinvolvingU.S.companies,theUCChasbeensubstitutedbytheCISG.

7.ThelegalsystemofChinabelongstocivillawsystemandcommonlawsystemhasnoinfluenceonChina.

8.Incommonlawcountries,judgesindecidingcasesmustfollowtheprecedents.

9.TheEconomicContractLaw,ForeignEconomicContractLaw,andTechnologyContractLawarethelawsgoverningsaleofgoodsinChina.

10.ContractLawofP.R.C.hasdrawnonacceptedlegalconceptsandprinciplesfrombothcivillawandcommonlawlegalsystems.

PartII.ChapterQuestions:Discussandanswerthefollowingquestionsaccordingtowhatyouhavelearnedinthischapter.Youareencouragedtouseyourownwords.

1.Whatarethedifferencesandsimilaritiesbetweencivillawandcommonlawsystems?

2.Inyouropinion,whichlegalsystemisbetter----thecommonlawsystemorthecivillawsystem?Giveyourreason.

3.Whatistheroleofnationallawingoverninginternationalbusinesstransactions?

4.HowdoyoucommentonthecharacteristicsofChina’slegalsystem?

5.ComparetheformrequirementsforcontractsbetweenContractLawofP.R.C.andSaleofGoodsActoftheU.K.

PartIII.CaseProblem

TheSternsenteredintoasurrogacyagreementwithMaryBethWhiteheadinwhichsheagreedtobearthechildofMr.Stern(throughartificialinsemination)inexchangeforcostsplus$10000andtoterminateherrightsasamotherevenbeforethebabywasconceived.Uponthebirthofthebaby(Melissa)andthesubsequenthandovertotheSternsasagreed,Mrs.Whitehead“becamedeeplydisturbed,disconsolate,strickenwithunbearablesadness.”ShepersuadedtheSternstogiveheronelastweekwiththechildbytellingthemthatshewassuicidal.SotheSternshandedtheirchildovertothesuicidalwoman.Itturnedoutthatthesuicidalwoman(MaryBethWhitehead)fledtoFloridawithherhusbandandthebaby.There,theytookevasivemanuverstoavoiddetectionbeforebeingorderedtoturnoverthechild.TheSternsfiledsuit,seekingpossessionandultimatecustodyofthechildandenforcementofthesurrogacycontractinwhichthechildwouldbeplacedpermanentlyintheircustodyandMrs.Whitehead’sparentalrightswouldbepermanentlyterminated.Afteralengthytrial,thecourtorderedthatMrs.Whitehead’sparentalrightsbeterminatedandthatsolecustodyofthechildbegrantedtoMr.Stern.ThecourtalsoenteredanorderallowingtheadoptionofMelissabyMrs.Stern,allinaccordancewiththesurrogacycontract.Mrs.Whiteheadappealed.

Isthesurrogacyagreementavalidcontract?DecidethecaseunderthelawofChinaandgiveyourreason.

Howwillthiscasebeaddressedbycourtsinacountrywhereitslawpermitssurrogacy?

PartIV.FurtherReading

Conflictoflawsisasetofrulesofprocedurallawwhichdeterminethelegalsystemandthelawofjurisdictionapplyingtoagivenlegaldispute.Incivillaw,lawyersandlegalscholarsrefertoconflictoflawsasprivateinternationallaw.Theytypicallyapplywhenalegaldisputehasa“foreign”element.

Forthelawsapplicabletocontracts,Noelementofthelawismoreconfusingthanthatundertheconflictoflawsandtheconflictbetweentheplacesofmakingandperformanceofacontractwheresuchplacesarenotthesame.Toresolvetheissue,courtshaveestablishedtherules.1.Choice-of-LawClauses.Achoiceoflawclauseisaprovisioninacontractinwhichthepartiesstipulatethatanydisputebetweenthemarisingfromthecontractwillbedeterminedinaccordancewiththelawofaparticularjurisdiction.Manycontractsandotherformsoflegallybindingagreementincludesuchaclause.Then,ifthedisputeislitigated,theclauseisnormallyhonoredbythecourthearingthelawsuit.2.TheSignificantRelationshipRule.Thesignificantrelationshipruleprovidesthattherulesregardingtherightsanddutiesofthepartieswithrespecttoanissueincontractaredeterminedbythelocallawofthestatewhichhasthemostsignificantrelationshiptothetransactionandtheparties.Inadditiontobeingreferredtoasthe“significantrelationship”rule,thisisalsoreferredtoasthecenter-of-gravitytheory,theinterestweighingorchoice-influencingtheory,thegroupingofcontactstheory.Accordingtothisrule,courtsapplythelawofthestatewiththemostsignificantorsubstantialcontactswiththepartiesandthetransactionunderlyingthelawsuitintheabsenceofavalidcontractualchoiceoflaw.Ratherthanmechanicallyapplythelawoftheplaceofcontractingortheplaceofperformance,courtsapplythelawofthestatewiththemostsignificantorsubstantialcontactswiththepartiesandthetransactionunderlyingthelawsuit.Themainintentionbehindtheapplicationofthesignificantrelationshipruleistoidentifythestatemostsignificantlyrelatedtotheparticularissueandtoapplyitslawtoresolvethesame.Thefollowingfactualcontactshastobeconsideredapplyingthesignificantrelationshipruletodeterminethelawapplicabletoanissue:theplaceofcontracting;theplaceofnegotiationofthecontract;theplaceofperformance;thelocationofthesubjectmatterofthecontract;andthedomicile,residence,nationality,placeofincorporation,andplaceofbusinessoftheparties.

Chapter4

Exercises

PARTI.TrueorFalseStatements:DecidewhetherthefollowingstatementsareTrueorFalseandexplainwhy.

1.TheUNConventiononContractsfortheInternationalSaleofGoods(CISG)istheprincipallawgoverninginternationalsaleofgoods.Here“international”meansthenationalitiesofthepartiesaredifferent.

2.Intheinternationalsalestransactions,theselleralwayshastocarryoutthecustomsformalitiesforexport.

3.Intheinternationalsalestransactions,thebuyeralwayshastocarryoutthecustomsformalitiesforimport.

4.Cargoinsuranceonlycoversagainstlossordamageduringseatransportation.

5.LetterofCreditisakindofpaymentinstrument.

PARTII.ChapterQuestions:Discussandanswerthefollowingquestionsaccordingtowhatyouhavelearnedinthischapter.Youareencouragedtouseyourownwords.

1.Beforesalesnegotiation,whatpreparationsshouldbemadebytheparties?

2.Whatarethemainstepsinvolvedinthenegotiationofsalescontract?

3.Whatshouldthebuyerdoaftertakingdeliveryofthegoodsfromthecarrier?

4.Whenanydisputearises,whatmethodscanbeusedtosettleit?

5.Ininternationalsales,whichtransportationmethodofgoodsisusedmostfrequently?

PARTIII.CaseProblem

AnAustrianbuyerandaChinesesellermadeacontractforthe

purchasefromSofscaffoldfittings.ThebuyerconductedpartofthenegotiationsinChina,wherethesellerwaslocated,andthebuyer'sliaisonofficeinChinahasbeeninvolvedinthenegotiatingprocess.

DoestheCISGapply?

Chapter5

Exercises

PARTI.TrueorFalseStatements:DecidewhetherthefollowingstatementsareTrueorFalseandexplainwhy.

1.Contractisawrittenagreementbetweentwoormorepartieswhichisenforceableinthelaw.

2.UndertheContractLawofPRC,acontractshallnotbemadethroughtheexchangeofe-mails.

3.UndertheContractLawofPRC,contractsconcludedbyapersonwithlimitedlegalcapacitysuchasaminorarevoid.

4.Ifapartyinducestheothertoenterintoacontractbyfraud,thecontractwillbedeemedtobevoidundertheContractLawofPRC.

5.Thelawofcontractindifferentlegalsystemssharemoresimilaritiesthandifferences.Theelementsforavalidcontractrequiredbycommonlawarethesameasthoseundercivillaw.

6.TheUCCisamodellawpublishedbyAmericanLawInstitute,thusitisnotbindingonanystateoftheU.S.

7.PrivatepartiesincontractingstatesofCISGcannotchooseanotherlawratherthanCISGtogoverntheircontractforinternation