Questions and Answers of International Business Law

Ben Arnold has been an employee of Tom Jefferson for several years. During that time, Jefferson has relied on Arnold to prepare payroll checks, checks to pay suppliers, etc. Unknown to Jefferson,
Ms. V, a wealthy art collector in Country W, is interested in buying a rare painting from Mr. Y in Country Z. Both parties agree that the price is to be determined by an independent appraiser.V
Doug Drawer makes out a check for $9 to Phil Payee. Phil cleverly alters the number 9 to 90 and the written nine to ninety and then cashes the check at a local convenience store. Must Doug (or
John Johnson, who works for a well-known parcel delivery service, delivered a large package to Pete Peterson and had Pete sign what Pete believed was an acknowledgment of delivery. The package
X enters into an agreement with Y whereby X was to deliver some goods to Y. The agreement mentions that Y would provide X with a letter of credit by way of compensation, the amount of which would be
In Question 9, would it make any difference if Rousseau had positive proof that a fraud had been perpetrated? nu6
In Question 9, would it make any difference if Schwartz’s bank had confirmed the letter of credit and paid the promissory note before Rousseau learned of the supposedly defective shipment? nju5
As noted in this chapter, the taking of private property is a controversial issue in international business law. Recent examples include Thailand and Venezuela. In January 2007, the Thai government
The financial crisis in the Eurozone has led to considerable debate about the future of not only the euro but also the EU. What is your prediction regarding the future of the euro? What is your
NAFTA contains provisions regarding the fair treatment of labor and the protection of the environment. Evaluate their potential for success. What labor and environmental issues are addressed in
You are in charge of an American subsidiary company in France that manufactures advanced robotics equipment used in the automobile industry. You have engineering and research facilities in both
Does the export of electric cattle prods require a license? Why? On what legal grounds?
Is it ethical to hold a business person legally responsible if he or she sells controlled technology to a second party that is then diverted to a prohibited end user? What factors will influence your
Fair trade is a worldwide movement based broadly based on the theory that trade between rich and poor should be based on notions of social and economic justice. It also advocates that small farms and
Visit the Website of the Bureau of Customs and Border Protection. What resources does it contain for the trade community? Go to the “Trade” page and link to “Legal Decisions/Publications.”
1. On what basis did the court deny Harriscom’s claim of breach of contract against RF Systems? 2. How much “government interference” should be required to invoke a force majeure clause? 3.
Do you think corporate codes of conduct can have an effect on making firms more socially responsible? Are they a substitute for government regulation or do they complement it? Explain.
1. India gained its independence from Great Britain in 1947. Like many developing countries with agrarian economies, independent India embarked on a long period of socialist and protectionist
State X has accepted the jurisdiction of the ICJ in a unilateral declaration pursuant to Article 36(2) of the ICJ’s statute. The declaration, however, contains the following provision: “This
State A sues State B in the ICJ. The Court hands down a judgment that is adverse to State B. State B refuses to comply with the judgment. What can State A do to get State B to comply?ICSID
State C and State D are both signatories of the Washington Convention that created the International Center for the Settlement of Investment Disputes (ICSID). Both have notified ICSID that they
In the preceding question, assume that Cee Co. obtains an award from the ICSID tribunal. Cee Co. now seeks to enforce the award in a State C court. State D pleads that it is immune from the
State U had a long-standing relationship with N, the president of State P. President N had regularly provided information to State U’s national intelligence agency on activities of the political
Lemon Inc. is a company registered in the U.K. which produces computers and has a call center registered in the Republic of H to address complaints associated with its computer products. The standard
The London Court of Arbitration has granted an arbitral award to Gee Co. The award requires H.R.R., the state-owned railway company in State H, to pay damages to Gee Co., a company headquartered and
State R decides to nationalize all property within its territory belonging to nationals of the United States. The United States objects that this violates international law, but State R goes ahead
In relation to the situation discussed in Question 6, assume that Ms.Distressed does not succeed before the London court and decides to sue Lemon Inc’s call center in the courts of the Republic of
Regal Shipping, Ltd., is a publicly traded company incorporated in the United Kingdom. It carries freight between Europe and the United States. Two years ago it lowered its fares to half those of its
Goliath, Inc., a U.S. producer of gem-quality sapphires, set up a subsidiary holding company in the Cayman Islands (Junior, Ltd.) to control all of Goliath’s non-U.S. subsidiaries. Junior then
Could I Company, in the previous question, be charged with violating American anti-trust laws? Discuss. nk65
Assume the same facts as in the preceding question. Does the arrangement between Mighty and Novel violate either Article 81 or 82 of the European Community Treaty? Can the EU Commission take action
In relation to the situation described in the previous question, assume that Brand X is a corporation registered in the U.K. and the relevant legislation is the Bribery Act 2010, instead of the
Overseas Investment Co. (OIC), a multinational enterprise with its headquarters in State W, entered into a joint venture with Investment Promotions Facility, Ltd. (IPF), a state-owned company whose
In Nissan Motor Mfg. Corp., U.S.A. v. United States, a Japanese company was required to pay customs duty in a foreign trade zone established in Tennessee. Does this defeat the purpose of a free trade
The Modern Exploration Co. (MEC), a firm organized in State P, entered into an investment contract with State Q to explore for and harvest magnesium nodules from the seabed of State Q’s continental
Turnip Company, a multinational enterprise headquartered in State T, ordered its subsidiary in State R, the Radish Company, to close and to declare itself bankrupt. The Radish Company didso. However,
Little, Ltd., is a small publicly traded stock company that owns a valuable patent. Little has approximately 1,000 shareholders and about 100,000 shares authorized and outstanding. Big Company would
The Harvester Company entered into a contract with Country R to harvest lumber on government land in Country R for a period of 20 years. The contract provided that if there were any disputes, the
Several years ago, a multilateral treaty came into effect among some 45 countries, including most of the major developed countries of the world. The treaty, known as the Outer Space Treaty, forbids
Tvern, a governor of the Republic of X, broke into the house of Mr. Different. Tvern tortured him and seized his property for complaining about the state of the economy. Mr. Different illegally
General Felix Raj is currently being prosecuted by the International Criminal Court (ICC) for various crimes against humanity committed in the Republic of A. General Raj has argued that he has merely
A river runs through State A and State B. State A is comparatively economically underdeveloped and has laws that its chemical industries have to process sewage before discharging the wastes into the
X in State A and Y in State B plan to enter into a contract. What can they do to avoid the impact of a fluctuation in the value of their money of account?Exchange Contracts and Exchange Control
The Widget Company has just imported 10,000 widgets into State A. Describe how the Customs Service of State A, a signatory of the Customs Valuation Code, will go about determining the value of these
State R, a country with a centrally planned economy, uses prison labor to manufacture export goods at very low cost. When State S learns this, it imposes an import embargo on these goods. Both
State C is a major exporter of lumber products (especially plywood) to State U. State C’s lumber companies are able to manufacture and sell their products in State U inexpensively because(unlike
The Snicker Company, the largest manufacturer of Snickerdoodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture
State Z’s automobile manufacturing industry is one of the largest and most highly regarded in the world. The industry is concerned that it may lose some of its domestic market share to
Mari and Juana are both members of the WTO. Mari supplies special herbs to Juana, which processes and sells them as medicinal herbs. However, it was discovered that Mari entered into an agreement
State C is a WTO member state and a party to NAFTA. It has made no specific agreements under either GATS or NAFTA as to its road transport sector. Now, two freight companies, one from State D(a WTO
State A has not ratified either the ILO Convention Concerning Freedom of Association or the ILO Convention Concerning the Application of the Principles of the Right to Organize and Bargain
Armstrong worked for a United Nations specialized agency in Geneva for seven years. As part of his job, he tracked the civil rights activities of the agency’s member states. One state did not
Barton works as a freelance reporter covering stories in State F, a member state of the EU. Her revealing stories, which she sells to a variety of progressive independent newspapers throughout the
Caruso, a national of State G, is licensed as a lawyer in that state.Caruso, however, wants to work as a courtroom advocate in State H. May Caruso do so, despite the fact that under State H law, only
Dickens is a dual national of the United States and Ireland. The United States has a prohibition on travel and employment of U.S.nationals in Cuba. If Dickens goes to work in Cuba using his Irish
The faculty of Public University (PU), located in State I, has invited Karl Engels, a “revolutionary Marxist” from State J, and Bishop Biggott, an advocate of apartheid from State K, to
Americana, Inc., a large multinational corporation with its headquarters in the United States, has a subsidiary in Tokyo. It refuses to appoint any Japanese nationals to the senior executive posts of
Alvin, Bob, Calvin, Don, and Edgar are friends who enroll in a university course to study international business law. The textbook required for the course costs $50, which the five friends agree is
Elvira is an abstract painter with incredible talent but little fame. One of her paintings, entitled Blue Lady 13, is a work of intense power and sensuality. In 1990, she sold it to Mega Company for
The First-to-Market Computer Software Company owns the copyright to a highly successful spreadsheet program—Blossom 3-2-1—which has dominated the worldwide market for several years. Recently,
The Whopper Co. is a manufacturer of gumballs. The technology and know-how to do this are well known in the scientific and engineering community in Whopper’s home country, where gumballs have been
Jacques Pierre manufactures and sells a line of perfume—Le Peux—in distinctively shaped containers that are instantly recognizable. May Jacques Pierre register the shape of the containers as a
Barley Beer Co. owns the trademark “Super Suds” for use on bottled and canned beer in Country X. Barley has not used the mark in Country X for six years. Hops Beer Co. would like to use the mark,
“Preventing the importation of gray goods legitimately manufactured outside the country is, in reality, injurious to consumers and contrary to basic principles of unfair competition laws.”
The world’s seven principal manufacturers of widgets have entered into an agreement to exchange with each other for a period of seven years all of their patents, petty patents, and know-how, and to
Buyer and Seller are citizens of the United States and France respectively. Both countries have adopted the CISG. However, as the performance of the contract is going to take place in the United
On January 1, Seller sent a letter to Buyer offering to sell to Buyer 5,000 widgets for $25 apiece. The letter also stated: “This offer is binding and irrevocable until February 1.” On January 5,
I have decided to withdraw the offer contained in it.” On January 7, after listening to her answering machine and reading the letter that arrived that same day, Buyer sent Seller the following
On December 1, Seller sent Buyer an offer to sell 5,000 widgets to Buyer for $25 apiece. The offer stated: “The offer will remain open until December 31.” On December 10, Buyer answered:“The
Buyer received a letter in her mail on January 1 offering to sell Buyer 5,000 widgets for $20 apiece. Seller’s letter closed with the following statement: “I know that this offer is so attractive
Seller and Buyer entered into a written contract for the manufacture by Seller of 10,000 widgets of a design specified by Buyer and set out in the contract. The contract also provided: “This
Buyer and Seller entered into a contract governed by the CISG for Seller to deliver a sophisticated computer to Buyer by January? mk6
Seller was late in delivering the machine, so Buyer wired Seller on January 2: “Anxious to take delivery of the computer.Hope that it arrives by February 1.” Seller delivers the computer on
Buyer and Seller are located in different countries that have adopted the CISG. Buyer purchases a software package online that immediately downloads and renders a particular hardware operational (but
Seller agreed to deliver three software programs to Buyer that are specially designed for Buyer’s business. The first was to be delivered in January, the second in February, and the third in March.
Suppose, in Question 1, the contract had been FAS Tacoma. Would Seller be liable? mlo6
Seller agreed to deliver 1,000 air conditioners to Buyer DES Port Moresby. The air conditioners were transported by ship to Port Moresby, where they were off-loaded to the customs shed for
Seller in Sydney, Australia, agreed to ship goods on or before December 31 under a CIF Sydney contract to Buyer in Honolulu. The seller was unable to assemble the goods for delivery in time to reach
Seller did load the goods aboard railway cars in Sydney on December 29 and received a bill of lading from the railway company on that date. Seller later obtained a bill of lading from the ship, and
Seller in San Francisco agreed to ship goods to Buyer in London under a CIF San Francisco contract. After the goods were loaded aboard the ship, but before it departed from San Francisco, Seller
Seller sells 4,000 diamonds to Buyer under Incoterms 2010 and loads them onto the HMS Bounty, a ship that is designated by the Buyer. Seller’s agent replaces 10 of those diamonds with fake ones and
Captain Ishmael has the misfortune of shipping porcelain vases and sandstone statues for two different English buyers across the Malacca Straits on the Hispaniola. He packs the two commodities
In the preceding question, assume that Country K decides not to assert any claims on behalf of either Big Co. or Little Co. May Country M do so? Discuss.Creeping Expropriation
A Crocodonian business firm chartered an airplane owned by the Republic of Crocodonia to fly cargo to Country U. The cargo was a load of crocodile skins that are legal to own and sell in Crocodonia
1. Would the Nelsons have had a claim in U.S. courts if the employment contract Mr. Nelson had signed in the United States had expressly agreed not to detain him in the absence of criminal activity?
Beginning in 1995, both Presidents Clinton and Bush issued several executive orders under IEEPA declaring a national emergency in dealing with terrorism. The Department of the Treasury issued
U.S. antitrust law reflects U.S. economic policy. If U.S. antitrust law resolves an economic dispute among British companies, has U.S. economic policy been extended to Britain? What are the
In Alcoa, Judge Hand points out that even agreements to restrict trade only in Europe and South America would have anticompetitive repercussions in the United States. What additional element did he
Your employer, Ortiz-Hartman Steel Limited, is a specialty U.S. steel manufacturer. Over the past several years, OrtizHartman has been underpriced in its specialty steel submarket by a manufacturer
Despite the Montreal Protocol, the nation of Livy continues to produce CFC-emitting refrigerators and to export them to nations throughout the world. A number of governments object to Livy’s
1. Why did the EEOC file a complaint against NCGA for a position Reyes-Gaona was applying for in Mexico? 2. Could American firms avoid the ADEA by conducting the hiring process in
Your firm, Flyboy, Inc., is a successful U.S. manufacturer of aircraft. Flyboy would like to expand its market to Pamonia, a small, oil-rich kingdom that was once an Italian colony. The principal
1. How important are the following two representations made by the Requestors to the DOJ’s decision? (a) The Requestors will not give any money directly to the foreign officials but will pay
1. What is the “special character” of Law 194/93, and how is its purpose achieved? 2. How does the court justify not implicating the social order of Paraguay? The Paraguayan government
You intend to obtain a saw blade produced in England and then ship it to China to be assembled with a handle that is manufactured in China. The finished saw is then packaged in China for export. What
1. When a court reviews a classification ruling, is the court free to disregard the position of Customs and consider all the evidence anew? Must the court give complete deference to Customs’
1. What purposes do FTZs serve? Why did Congress establish them? 2. What were the advantages to Nissan by assembling automobiles in an FTZ? How many can you list? 3. Why could Nissan not
What makes an import practice “unfair”? What remedies are available under U.S. law to protect domestic industries from unfair import competition?
Why does the U.S. Congress subsidize agriculture? What is the economic impact of subsidies on worldwide agricultural prices? Why are subsidies a subject of dispute between the United States, Europe,
A country enacts a law that denies import privileges for five years to any firm that “dumps” products for sale in its markets at less than normal value. Do the WTO antidumping agreements permit

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