questions

The CISG does not incorporate the: a. Concept of a warranty made by a seller of goods. b. Parol evidence rule. c. Concept of fundamental breach of contract unless agreed to be the parties in the contract. d. Mirror image rule.

b. Parol evidence rule.

Personal jurisdiction can be obtained by: a. Arbitration under rules of American Arbitration Association. b. Lawful service of process on plaintiff. c. Lawful service of process on defendant. d. Subject matter jurisdiction alone.

c. Lawful service of process on defendant.

Both the UCC and the CISG allow a seller to cure a ____ within a reasonable time. a. Nonconforming shipment. b. Breach of mailbox rule. c. Breach of parol evidence rule. d. Fundamental breach of any kind.

a. Nonconforming shipment

A formal request for service of process through diplomatic channels to be accomplished through a foreign court on a defendant in that foreign jurisdiction is called: a. Application of forum non conveniens doctrine b. Venue c . letter rogatory d. In rem jurisdiction

c . letter rogatory

When one party to a contract fails to perform, the contract does not end automatically but the other party may as a result declare ______ of the contract. a. A right to claim liquidated damages in a "reasonable amount" as a result even if not provided for in contract. b. An immediate right to collect 150% if its lost profits c. An avoidance (tantamount to a termination) of the contract d. An amendment of the contract unilaterally to other terms

c. An avoidance (tantamount to a termination) of the contract

The CISG governs: a. Whether a party to an international contract is legally competent. b. Whether the party to a contract has made a fair deal. c. Whether a party to the contract is guilty of fraud or misrepresentation. d. The formation of an international contract and obligations of the parties under the contract.

d. The formation of an international contract and obligations of the parties under the contract.

ABC Company in the US negotiates a contract with Ajax company (Ajax) located in Finland to sell it tractors. Ajax will sell the tractors through its network of stores in Finland. The parties agree that in the event of a dispute, resolution will be in the courts of Germany located in Berlin. There is a dispute and Ajax files its lawsuit in Berlin. What result is most likely? a. ABC will win the case on its merits. b. Ajax will be allowed by the court in Berlin to pursue its claim. c. ABC will likely terminate the forum selection clause as allowed in the contract. d. ABC will object that the forum chosen has no relation to the transaction, and thus the clause is invalid, and the court will likely agree.

d. ABC will object that the forum chosen has no relation to the transaction, and thus the clause is invalid, and the court will likely agree.

The Foreign Sovereign Immunities Act of 1976 generally prohibits jurisdiction by US courts to hear lawsuits filed against a foreign state unless an exception exists to that principle such as: a. Universal jurisdiction. b. The foreign state defendant allows US companies to be sued in that foreign state. c. Act of state. d. Commercial activity.

d. Commercial activity.

Which statement below is true? a. A mediator makes a final and binding award between the parties. b. An arbitrator makes a final and binding award between the parties. c. An arbitrator helps/facilitates the parties to enter into their own settlement agreement. d. Parties can never agree to both mediate and arbitrate the same dispute.

b. An arbitrator makes a final and binding award between the parties.

In the famous case involving the Union Carbide plant explosion in Bhopal, India the US federal declined to assert continuing jurisdiction to hear many Indian victims' claims for personal injury or death on the basis of: a. Applying the doctrine of forum non conveniens b. Lack of subject matter jurisdiction c. No "minimum contacts" between Union Carbide and the court d. Lack of venue

a. Applying the doctrine of forum non conveniens

The Full Faith and Credit Clause of the US Constitution requires: a. US courts to recognize the public acts, records and judgments of other US states and well as foreign countries. b. US courts to recognize the public acts, records and judgments of other US states. c. Service of process by the enforcing court. d. Universal jurisdiction for the subject claim or dispute.

b. US courts to recognize the public acts, records and judgments of other US states.

John's Used Car Company states on June 1st to its customer Fred that "We will offer you and your family two red jeeps from our inventory for $50,000 and will hold this open until July 1st." What statement below best describes the ability of the parties to terminate this offer as of June 17th? a. John's cannot revoke this offer legally because it is a "firm offer" until July 1 under UCC rules. b. Neither party can terminate or "kill" the offer. c. Fred can revoke the offer. d. Revocation can be made legally by John's Used Cars.

d. Revocation can be made legally by John's Used Cars.

Choice of law clauses in international business contracts are often used in conjunction with _____________________. a. Forum selection clauses. b. Service of process clauses. c. Payment clauses. d. Mediation clauses

a. Forum selection clauses.

A clause contained in a commercial contract excusing a party from performance if specified circumstances occur is often included, generally for the benefit of a seller. The clause is called: a. Force majeure clause. b. Supervening illegality clause. c. Anticipatory breach clause. d. Frustration of purpose clause.

a. Force majeure clause.

American Shoe Company (ASC) has a factory in Pakistan. There is an explosion there when a gas line breaks and six Pakistani employees are killed. They file a lawsuit in New York (where the company has its headquarters.) This appears to be a case where the lawyers for the deceased workers are motivated to engage in: a. Forum shipping b. Forum non conveniens c. Using a forum selection clause d. Using diversity of citizenship as a basis for federal court jurisdiction.

a. Forum shipping

On Tuesday Sam says to John "Let me sell you my car for $10,000, a great deal and below "blue book" value of the car. If I don't hear from you by Friday before I go to Chicago, I assume we have a deal." As of the following Saturday, is there a contract between Sam and John? a. No. b. Yes, if Sam made the offer with intent to be bound. c. Yes, if the price was in fact below book value and Sam thus made the statement in good faith. d. Yes, if there was no prior pattern of other cars sold on the same circumstances as described.

a. No.

Many attorneys encourage their clients to exclude application of CISG law in an international contract by: a. Placing a choice of law clause in the contract specifying a national law to be applied. b. Pitting a forum selection clause to be placed into the contract. c. Placing a clause guaranteeing payment in the contract. d. Obtaining a waiver from CISG applicability granted by the UN.

a. Placing a choice of law clause in the contract specifying a national law to be applied.

ABC Company makes furniture. It seeks to protect itself to the greatest extent possible from the expense and time of litigation by injured users of its product. It will likely place alternate dispute resolution clause on the back of each item of furniture that states injured user-purchasers parties must _____ for any claims for personal injury: a. Mediate. b. Arbitrate. c. Assert and prove personal jurisdiction over ABC. d. Negotiate.

b. Arbitrate.

The _______ states that a court may not consider evidence or oral statements made prior to or at the time of contracting that vary or contradict the clear, unambiguous terms in a written contract. a. Mirror image rule b. Parol evidence rule c. Mailbox rule d. "Battle of the Forms"

b. Parol evidence rule

The ______ is the primary body for commercial law covering domestic transactions in the US. a. English sales law b. Uniform Commercial Code (UCC) c. Law merchant d. UNCITRAL

b. Uniform Commercial Code (UCC)

William is a contractor who is asked by Joanne to build her a house. Joanne shows her architect's plan to William and he estimates his total labor and materials costs will be $200,000. He proposed to build the house for a fixed price of $240,000 and a contract is signed. The next day Joanne calls William before he has done anything and tells him she has been transferred to another city and no longer wants the house. William is furious and will likely sue her for: a. $240,000 b. $200,000 c. $40,000 d. Zero, since he had done nothing yet.

c. $40,000

Ellen and Ann are sisters. Ellen lives in Tarrant County, Texas and Ann lives in Mexico. They inherit a 200-acre tract of land located in Smith County, Texas. There is very confusing language in the Will left behind by their father and each of them now claims they are the sole owner of the land. Ellen files a lawsuit in Smith County, Texas court asking the court to determine title to the land and claims it must determine such based on the law that she is its sole owner. The Texas court will likely assert that it has _______: a. No personal jurisdiction over Ellen. b. No personal jurisdiction over Ann who lives in Mexico. c. In rem jurisdiction to hear this dispute. d. No jurisdiction to hear this case since the parties both live outside Smith County.

c. In rem jurisdiction to hear this dispute.

The New York Convention is signed by 150 nations. It relates to: a. A preference for signatory states or parties to international contracts to use mediation prior to use of arbitration. b. Selection of International Chamber of Commerce in Paris rules for arbitration of disputes. c. The recognition and enforcement by courts of foreign arbitration awards. d. The mandatory use of arbitration clauses in contracts involving citizens of a signatory state.

c. The recognition and enforcement by courts of foreign arbitration awards.

The Convention on Contracts for the International Sale of Goods (CISG) general applies: a. To only written agreements for the international sale of goods. b. To contracts for the international sale of any goods, including consumer items. c. To contracts for the international sale of goods (excluding consumer items). d. To contracts for the international sale of goods and services.

c. To contracts for the international sale of goods (excluding consumer items).

Rules determining the geographic location of a court of competent jurisdiction to hear a case are called ____________________. a. Conflicts of law rules. b. Subject matter jurisdiction principles. c. Venue. d. Forum selection clause.

c. Venue

John is in New York. On June 1, he transmits an offer via email to Susan in Boston stating he will sell her his red car for $15,000. She reads it on the 1st and places a letter and check in the mailbox on June 3 accepting his offer. On June 4 he emails her that he has changed his mind. On June 7 he receives in the mail her letter with the check. Is there a contract in effect between them? a. No, since John's revocation of his offer was made before he knew of Susan's acceptance of his offer on the 7th. b. No, because John cannot make a valid offer via email. c. Yes, because the mailbox rule means Susan's acceptance occurred when her letter was placed in the mail on the 4th. d. Yes, because John's offer was made with an intent to be bound

c. Yes, because the mailbox rule means Susan's acceptance occurred when her letter was placed in the mail on the 4th.

ABC Company has a contract dispute with DEF Company. There was an arbitration clause in their contract. ABC arbitrates their claim, but DEF wins. ABC is very angry, and wants to know if they have to pay the award. Generally speaking, they must do so unless: a. ABC could have appealed the award if it was a decision by a state court. b. DEF introduced evidence at the arbitration hearing that would not have been allowed in a state court proceeding. c. DEF had better lawyers than ABC did. d. ABC can prove misconduct or fraud by the arbitrator.

d. ABC can prove misconduct or fraud by the arbitrator.

The CISG permits recovery by an injured party of a monetary amount called: a. Specific performance. b. Liquidated damages whether provided in the contract or not. c. Nachfrist. d. Consequential damages if proved to be "reasonably foreseeable" as a consequence of the breach.

d. Consequential damages if proved to be "reasonably foreseeable" as a consequence of the breach.

Maine Jeans of Joy, Inc. (MJJ) is in Portland and manufactures blue jeans with its special logo on the jeans and sells them nationwide. It fills an order which is placed on its Internet website by an Idaho company (ZUMA) that is for 50,000 pair of jeans. The jeans are shipped to ZUMA's facility in Boise but are of inferior quality. ZUMA uses local legal counsel to sue MJJ in Idaho State civil court for contract breach. What is the best and most common jurisdictional defense in a typical case like this that MJJ can assert? a. ZUMA has no business presence in Maine and thus no "minimum contacts" there, there must be reciprocity before Idaho court asserts jurisdiction. b. Universal jurisdiction is appropriate. c. The court lacks subject matter jurisdiction over this case. d. MJJ has no "minimum contacts" with Idaho and thus there is no personal jurisdiction by the Idaho court over it.

d. MJJ has no "minimum contacts" with Idaho and thus there is no personal jurisdiction by the Idaho court over it.

A plaintiff in a lawsuit in a state court must prove that an individual or corporate defendant sued in the lawsuit has ______ in order to obtain personal jurisdiction over that defendant. a. Derives at least $100,000 or more in revenues (or another amount set by state law) from operating in that state. b. Owns property in that state. c. An intent to do business in the forum. d. Minimum contacts with the forum state.

d. Minimum contacts with the forum state.

Raul signs a written lease with ABC Apartments to pay "$1,000 per month" for occupancy. He pays $800 rent the first month of occupancy; ABC sues to collect its $200 in rent. Raul testifies in court that he and the leasing agent has a "gentleman's understanding" that all months were for only $800 in rent. ABC's lawyer objects that this testimony cannot be admitted into evidence and consideration by the jury because of: a. Mirror image rule. b. A supervening illegality had occurred to make such testimony illegal. c. Force majeure clause was in lease. d. Parol evidence rule.

d. Parol evidence rule.