Ch 4 The Formation and Performance of Contracts for the Sale of Goods Quiz

If the price term is not fixed under CISG, there is no way to have a valid sales contract.

False

The Convention on Contracts for the International Sale of Goods (CISG) was developed to give U.S. business an advantage in international sales contracts

False

The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is:

Force Majeure clause.

The following are all problems faced by developing countries in their business contract relationships with wealthier nations except:

Lack of natural resources to use as collateral for credit.

The following elements are all considered to be key elements materially altering the terms of an offer when included with an acceptance under the CISG except:

Specification of the ship to be used for carriage.

All of the following may be raised as reasons for nonperformance of sales contract except:

Subjective Constraints.

Both the U.S. and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a contract for the sale of widgets. If a dispute arises:

The CISG will apply since all the requirements have been met.

A U.S. company sends a purchase order to an Italian shoe company. The Italian shoe company sends a letter confirming the purchase order. The CISG provides:

The Italian company can withdraw the acceptance if the withdrawal reaches the U.S. before its acceptance.

In the U.S., the remedy of specific performance is limited to those instances where:

The goods are unique

Under CISG, all of the following are requirements to excuse nonperformance of a contract except:

The impediment is of such of monetary value as to shock the conscience.

Contract negotiations in Japan are characterized by all of the following except:

The presence of lawyers during the negotiations to insure that their clients' legal interests are protected.

"Conflict of Laws" in an international setting refers to which nation's laws apply to when a court hears a case.

True

Despite the fact that many countries permit foreign currency judgments, the CISG does not authorize them

True

In certain cases, a court excuses nonperformance of a contract where an unexpected event occurs that frustrates the purpose of the contract.

True

The CISG says that the remedy of specific performance is allowed where the domestic laws of a country allow such a remedy.

True

The Uniform Commercial Code has provisions applicable to international business allowing substituted performance.

True

Under a device known as nachfrist notice, the CISG allows either party -- buyer or seller -- to fix an additional period of time, beyond the date called for in the contract, for the other to perform.

True

The primary body of law in the U.S. dealing with domestic sales contracts is:

Uniform Commercial Code (UCC)

If a question arises over a trade usage, the CISG provides that:

a. no reference to trade usage is allowed by a court .b. a court can look at those trade usages that the parties knew or ought to have known and are regularly used in the industry. c. a court can look at those trade usages to which the parties agree to be bound. d. both a court can look at those trade usages that the parties knew or ought to have known and are regularly used in the industry and a court can look at those trade usages to which the parties agree to be bound. Answer: Both b and c

Price reduction is not available as a buyer's remedy for the seller's breach under the CISG if:

a. the seller has already delivered conforming substitute goods. b. the buyer has refused to accept the seller's attempt to cure the breach. c. the buyer has avoided the contract and refused delivery. d. all of these are correct. Answer: All of the above