BL chapter 46

Letter of credit

bank's promise to pay the seller, provided certain conditions are met; used to manage the payment risks in international trade

International contracts have differences in language, customs, legal systems and currency that can cause confusion. Also, the laws applicable are different. For international contracts for the sale of goods (not consumer goods) what law applies and do you get perfect tender? ______________________________.

(CISG)- Convention on Contracts for International Sale of Goods

Two examples of these Regional Trade Communities are _________________ and _____________________.

(EU)- European Union (NAFTA)- North American Free Trade Agreement

The law that prohibits U.S. companies from paying or offering to pay bribes to foreign government officials, political party officials, agents or relatives to induce them to misuse their official position, such as to obtain new business or maintain an existing business is the _________________________________________.

(FCPA)- Foreign Corrupt Practices Act

What law applies for the purchase of goods in the U.S.? ________________________

(UCC)- Uniform Commercial Code

The most important multilateral trade treaty is the ________________________ and the organization that was created due to this treaty is called the __________________________.

- (GATT)- General Agreement of Tariffs and Trade - (WTO)- World Trade Organization

The foreign exporter (seller) may not have done business with you before. He can greatly increase the likelihood of getting paid for the goods if he obtains an irrevocable ________________________ which means the exporter/seller will actually receive the payment of funds from __________________________________.

- Letter of Credit - the buyers bank

The legal doctrine that prohibits the courts of one country to sit in judgment of the acts of another government done within its own territory is called ___________________________.

Act of State Doctrine

Foreign agent

Agency relationships are often used by companies that won't limited involvement in the international market

Madrid protocol

An agreement allowing US trademark owners to file for registration in over 65 member countries by filing a single application in English and paying a single fee

If you do not specify a particular law, and both the US and the foreign country have adopted the CISG, then which law would apply, the UCC or the CISG?___________________

CISG

Presume you are purchasing goods from a foreign exporter. What clause can you put in your contract that specifies which law you want to apply to the transaction? ________________

Choice of Law Clause

If the property is seized but no payment is made, this is called ________________________.

Confiscation

Does not apply

Do the US intellectual property protection laws apply in foreign countries?

Per the World Trade Organization (WTO), If a foreign producer of goods exports to another country, but sells those goods at a price that is lower than the cost to produce them, or less than the cost normally sold in their own country, this is call __________________ and is illegal.

Dumping

15 judges, no two of who may be from the same sovereign state

How many judges are in the internal court of justice

force majeure

Klaus apportioning the liabilities and duties of the parties in the event of an Unforeseeable occurrence: under the international contracts

If you are in compliance with US laws for patents, trademarks and copyrights, will you intellectual property also be protected internationally? ______________________.

No

If a payment is made to expedite a routine governmental action, such as an 'extra' payment to obtain a building permit more quickly, is this a violation of this law? ________________

No- Expediting Payment Exception

CACM, CARICOM, ASEAN, ANCOM, ECOWAS

Other important regional trade communities

Sovereign immunity

foreign country's freedom from a host country's laws

Many countries have entered into agreements to facilitate trade within certain regions of the world.

Regional Trade Communities

World Intellectual Property Organization (WIPO)

Seeks to promote protection of intellectual property throughout the world. Administers 21 international treaties dealing with intellectual property protection includes more than 175 nation as a member states

What goods are NOT included in the above contract law? ___________________

Ships, aircraft, electricity, and consumer goods

A duty or tax paid on imports and which has the effect of being a barrier to international trade and protecting domestic (ie US) markets is called a _____________________________.

Tariff

2/3 of the senators present concur

The US Constitution authorizes the president to enter into treaties with advice and consent of the Senate providing...

Direct export sales

The seller contracts directly with the buyer in the other country. This is the simplest at least evolved form of multinational enterprise

A commercial activity carried in the US by the foreign state, and I performed in the US in connection with the commercial activity of the foreign state carried on elsewhere, or a commercial activity of a foreign state carried on outside the US that causes a direct effect in the US

The sovereign immunity act specifically provides that a foreign state shall not be immune from the jurisdiction of quarts of the US or of the states if the suit is based upon:

Employment discrimination

Title seven, the Americans with disabilities act, and the age discrimination in employment act apply to US citizens employed abroad by US employers for or by foreign companies controlled by US employers, unless compliance violates laws of the country in which the workplace is located

A sovereign may waive its right to raise the act of state defense and the doctrine may be in applicable to commercial activities of a foreign sovereign

Two exceptions of the act of state doctrine include:

Distributorships

Unlike an agent, a distributor takes title to merchandise it receives. This commonly use form is deceptable to anti-trust violations

Valid passports and visas

What are two things required for the flow of labor

Language, law that governs any breach, how to settle disputes, current season payments, a force majeure clause apportion and liabilities and responsibilities in the event of any Unforeseen occurrences

What item should be specified in a contract involving the sale of goods between a celer in the United States and the buyer in a foreign country

Does the above law apply if the payment is made outside of the U.S.? _______________

Yes

Generally, do Title VII, the ADA, and ADEA apply to U.S. citizens working abroad? ________.

Yes

International treaties

agreements between or among independent nations, such as the General Agreement on Tariffs and Trade (GATT), now called the World Trade Organization (WTO), and the United Nations Convention on the Law of the Sea (UNCLOS)

Multinational enterprise

any business that engages in transactions involving the movement of goods, information, money, people, or services across national borders

Wholly owned subsidiary

can offer numerous advantages, including the opportunity to retain authority and control all phases of operation and the ability to safeguard technology

Tariff

duty or tax imposed on goods moving into or out of a country

In the U.S., the taking of property by the government for a public purpose and with just (ie fair) compensation is called ___________________________.

eminent domain

Internationally, _________________ or _______________ refers to the government seizure of foreign-owned property for a public purpose and the owner is paid 'just' compensation.

expropriation nationalization

Expropriation

governmental taking of foreign-owned property for a public purpose and with payment of just compensation

Confiscation

governmental taking of foreign-owned property without payment (or for a highly inadequate payment) or for a nonpublic purpose

International law

includes law that deals with the conduct and relations of nation-states and international organizations as well as some of their relations with persons; such law is enforceable by the courts of a nation that has adopted the international law as domestic law

Treaty

is an agreement between or among independent nations

Licensing

multinational enterprise sells a foreign company the right to use technology or information

Act of state doctrine

rule that a court should not question the validity of actions taken by a foreign government in its own country