PRACTICE QUESTION:

TRUE OR FALSE? The 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG) do not apply to transactions originating in the United States because the U.S. Constitution is always the highest law in the land.

Please read both tutors answer. Which tutor is correct?

Answer 1:FALSE. Even though the Constitution of the United States of America is the country's supreme law, the Uniform Commercial Code (CISG) applies to every transaction that begins or ends in the United States.

• At least one participant in a CISG-ratified transaction must be domiciled in one of those countries. In the United States, there is no one law that controls transactions involving parties from different states; hence, if one party is from Texas and the other from Alaska, or both from California or New York, the same law applies. If there is no domestic precedent, courts in some states may be reluctant to apply foreign statutes or case law.
• A U.S. corporation that enters into a contract with an overseas counterpart will be controlled by both U.S. federal law and the CISG, as well as any other treaties that are applicable to the transaction (such as a treaty between two countries ratified by it).

Or...

Answer 2:

True.

The 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG) do not apply to transactions originating in the United States because the U.S. Constitution is always the highest law in the land.