Worksheet 20.3: Contracts for the International Sales of Goods

9. The CISG provides that an offer will be irrevocable if the offeror states ___(1)___ that the offer is irrevocable or if the offeree ___(2)___ relies on the offer as being irrevocable.

(1) orally (2) reasonably

5. Unlike the UCC, the CISG does not apply to consumer sales. a. True b. False

a

2. The United Nations Convention on Contracts for the International Sale of Goods (CISG) was created in ______.

1980

4. The CISG is similar to ______ of the UCC.

Article 2

12. Choice-of-language clause

Choice-of-language clause: A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.,

12. Choice-of-law clause

Choice-of-law clause: A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.

12. Force majeure clause

Force majeure clause: A provision in a contract stipulating that certain unforeseen events, such as war, will excuse a party from liability for nonperformance of contractual obligations.,

7. If an additional term relates to payment, quality, quantity, price, time, and place of delivery, the CISG considers the added terms as material alterations. a. True b. False

a

10. Under the CISG, a writing: a. is required for the sale of goods over $500. b. is not required at all for the sale of goods. c. is only required for the sale of goods if one party is not a merchant.

b

11. Under the CISG, an acceptance is effective on dispatch, similar to the rule under the UCC. a. True b. False

b

3. Only a handful of countries have adopted the CISG. a. True b. False

b. false (More than eighty countries, including the United States, Canada, some Central and South American countries, China, most European countries, Japan, and Mexico, have become signatories.)

1. Sales contracts between parties residing in the United States and foreign countries are typically governed by the: a. World Trade Organization's International Civil Law Convention Code. b. Uniform Sale of Goods Act for International and Worldwide Contracting. c. United Nations Convention on Contracts for the International Sale of Goods (CISG).

c

8. Because of the CISG rules, businesspersons undertaking international sales transactions ______ draft specific forms to suit the needs of the particular transaction.

should

6. Article 19 of the CISG provides that a contract may be formed even though an acceptance contains additional terms, unless ______.

the additional terms materially alter the contract