Law 407
Midterm Study Guide
I am providing this study guide to help you with your studies. These will be the areas of concentration, but I will not commit to this study guide being exclusive. I look for understanding of the big picture, as opposed to the ability to memorize a bunch of picky rules.
Chapter 1: Introduction to International Business
Economic interdependence and globalization
Trends and government controls of trade
Intellectual property issues
Forms of doing business in foreign countries
Risks and opportunities in developing countries
Trends
in
Managing risk in international business (see book for list) (this is very important, understanding what can go wrong will help you understand how the law developed the way it did)
Chapter 2: International Law and Organizations
Sources of international law
Tradition
(
Treaties and their interpretation
Extradition and jurisdiction
International Court of Justice
Who can use it?
What is it good at? What are its limitations?
UN Role
Private international law
Different legal systems
Constitutional limitations on enforcement of foreign judgments
International organizations
Know the main ones in book
Where did they come from? What do they do?
Ethics issues that arise in international biz
If it’s legal over there, is it ethically OK to do?
Chapter 3: Resolving International Business Disputes
Be able to explain why it is expensive and risky to get into an international business dispute
Avoiding disputes
Various forms of dispute resolution
Choice of law and choice of forum clauses
Jurisdiction and venue when parties are from different countries
Conflicts of law (generally, how does a court pick which law to apply)
Enforcement of foreign money judgments
Chapter 4: Sales Contracts and Excuses for Non-Performance
UCC and CISG (why are they needed, how did they develop)
Impact of CISG on state law
Illegal contracts
What are the terms of the contract? (battle of the forms)
Warranty claims (how does CISG differ from UCC)
Fundamental breach and avoidance
CISG and situations beyond control
Chapter 5:
Documentary
Be able to explain the chart showing how the buyer, seller, banks and carrier eliminate some risks and define who bears the risks in various situations. The material in chapters 5-7 all fit together.
Document of title, BL, who owns the cargo?
Delivery obligations
Seller’s obligations (provide the docs as required by LC)
Types of BL (clean, on board, negotiable, straight)
“received for shipment in apparent good order and condition”
Other carriage contracts (AWB, forwarder or NVOCC BL
Terms of shipment
CIF, C&F, FOB (what is included in the price, when does risk of loss and title pass)
Who buys the insurance?
Chapter 6: Carriage of Goods and Liability of Air and Sea Carriers
Misdelivery (original BL required)
Air carriage
Preemption of state law claims (why?)
Limitation of liability (SDRs)
Liability for death or bodily injury (limitation of liability)
Liability for cargo and luggage damage
Sea carriage
COGSA
Limitation of liability ($500/pkg) (what’s a pkg? what if BL not clear which is pkg?)
Prima facie case, excepted cause of loss (peril of the sea, fault of shipper), unseaworthy condition
Forum selection clauses
Shipper’s liability for hazardous cargo
Prima facie case, good order, bad order, damage
False negotiable BL and estoppel
Ocean transport intermediaries
NVOCCs, Freight forwarders (what do they do? What liability do they have?)
Marine Cargo Insurance
What is the purpose?
Who owns the rights to policy?
All risk policy, war risk policy?
General average (what is it?)
Chapter 7: Bank Collections, Trade Finance, LCs
Bill of exchange, draft
Letter of credit
Define it
Principle of independence
Fraud
in the transaction exception (note UCC and
Bank’s obligations if docs are problematic
Holder in due course (what is it, what rights?)
Rule of strict compliance (how strict is strict?)
Standby LC
What is it used for?
Bank’s
preference to honor LC (