CISG Case 2

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Question 1

1. In which way does the exclusion of the CISG application usually take place in
a named cases?
A. By an explicit exclusion (e.g. “This Agreement shall not be governed by the
provisions of the CISG”) within each contract
B. By an explicit exclusion (e.g. “This Agreement shall not be governed by the
provisions of the CISG”) within a boiler plate clause, that is to say by a virtue of standard
contract form
C. Implicitly by choosing the applicable domestic law of a none - Contracting State
D. All the above answers

2. 
Both the U.S. and France have ratified the Convention on Contracts for the Internat
ional Sale of Goods (CISG). A buyer in France and a seller in the U.S. enter into a c
ontract for the sale of widgets. If a dispute arises....
A. The CISG will not apply since the requirement of “legal selection” has not been m
et.
B. CISG will apply since all the requirements have been met
C. The Uniform Commercial Code (UCC) will apply since the seller is a U.S. compa
ny and the UCC is a law governing the commercial transaction in U.S.
D. Neither the UCC nor CISG will apply

Question 2.

Canadian buyers and US sellers signed a contract to buy vacuum insulation systems. In
order to meet agreements that have existed previously with the Canadian Ministry of
Defense on the quality of equipment and the installation of systems at a plant in the
Arctic, buyers have fixed a specific delivery schedule. .
The buyer paid according to the contract price but the seller did not deliver the goods
within the agreed time. The buyer sued the seller to the Ontario Supreme Court of Justice
requesting cancellation of the contract. Sellers disagree, saying that buyers do not have
enough grounds to cancel the contract.

According to you, does the buyer have enough grounds to cancel the contract? Why?

Question 3
Between April and October 2007, Korean sellers and US buyers signed a series of
production and distributed contracts for 500,000 women's clothes to buyers' locations in
the United States. Under the terms of the order, the buyer is obliged to pay the seller
within 15 days after receiving the item. In July and August 2007, the seller sent a part of
the order even though it was not paid by the buyer. During the months of October and
November, after receiving a firm commitment, the buyer would pay for the delivered
shipments, the seller continued to send the rest of the garment shipment. After that, the
seller has agreed to reduce the price for the buyer and permitted buyer to pay for 5 times,
but, the buyer did not comply with the payment according to the committed plan, so the
seller has suspended the delivery and retained a few apparel shipments in Los Angeles.
After protecting the goods and getting some money from their sales, the seller sued the
buyer.

According to you, does the seller have reasonable grounds to sue the buyer? Why?

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