Ultimate Sports Equipment (USE) is an American-based company that manufactures and distributes equipment related to outdoor winter sports such as skiing and snowboarding. Their newest product, the Sky Board 1000, has resulted in significant growth for the company, and USE's management pursued a strategy to begin to distribute the product in several European countries. Based on their research, they arrange for a meeting with Praha, a European sports equipment retailer headquartered in Prague, Czech Republic. The parties negotiate an oral agreement for production and distribution rights for the Sky Board and a license for use of USE' s trademarks in Central Europe. After the parties meet, one of Praha's executives meets with a USE manager privately and informs her that a payment of a $10,000 "express fee" to the local government officials is known to speed up required government licensing by at least six months.

1. What international commercial laws is the USE-Praha agreement governed by? What makes the parties subject to these particular laws?
2. If a dispute develops, and USE alleges that the contract is not enforceable because it is not in writing, what is the result under CISG?
3. What are the possible consequences for USE if their management decides to pay the $10,000 express fee?