Chapter 8 - Shawnae Cristobal Legal Aspects of the Business...

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Shawnae Cristobal Legal Aspects of the Business Process Professor Schulz March 4, 2010 Chapter 8: International Law (3,4,6,8,10) 3. It is unethical. Hector should not make a firm commitment, requiring the Italian exporter to tie up 30,000 parkas, if he does not plan to honor it. Not only is this unethical, it is dumb. An oral contract for the sale of goods worth more than $500 is generally not binding in the United States under the Uniform Commercial Code, but the UCC may not control. Rather, this contract may be governed by the Convention on Contracts for the Sale of Goods which does not require such contracts to be written. Where sales of goods are between merchants whose places of business are in different countries and those countries are signatories to the CISG, the CISG will control. Because the question does not inform us whether these businesses or parties are of different countries or whether the Italian ski parkas are sold by an Italian business or a business in Italy, we cannot be certain of the application of the CISG. 4. In this case I believe that Allied Fidelity Insurance Company should win because they upheld their end and can provide the documentation of compliance with the agreement. The beneficiary is entitled to payment as long as he can provide the documentary evidence required by the letter of credit. The letter of credit is a distinct and separate transaction from the
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This note was uploaded on 04/13/2010 for the course BUSINESS 15643 taught by Professor Schilz during the Spring '10 term at École Normale Supérieure.

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Chapter 8 - Shawnae Cristobal Legal Aspects of the Business...

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