FH JoanneumInternational Business LawRE-EXAM

Satu pitkänenJune 2015

Name and student number______

There are threequestions in the exam. You can use the CISG (United Nations Convention on Contracts for the International Sale of Goods 1980).The scale is as follows: 15-14 points = 5, 13-11 points = 4, 10-8 points = 3, 7-6 points = 2, 5-4 points = 1, under 4 points = 0. Give clear answers and answer only the question.

1.

Cosmopolitan AG received a letter in their mail on January 15 offering to sell them 16,000 widgets for € 90 apiece. Seller’s letter closed with the following statement: ”As you realize this offer is an extraordinary bargain and I will assume that you accept it unless I hear otherwise by February 10." Cosmopolitan AG did not reply. Seller shipped the components on February 11. What are the responsibilities of Cosmopolitan AG under the CISG? Remember to reason your answer.

2.

In international business contracts a common problem is conflicts of laws. Tell about the choice of law and the principles according to which the applicable law is determined.

3.

There is only one correct option in each argument, choose the one and circleit.

Circle the letter indicating the only correct choice in each question:

4.1. Entire Agreement (Parol Evidence Rule)

a.Means that evidence is needed in contracts

b.Means that what is not stated in the contract can’t be referred to

c.Is an important principle of the CISG

d.Is a principle always applied in international business trade

4.2. Under the CISG, a contract is concluded when

a.Acceptance is dispatched (sent) by the offeree

b.Acceptance is received by the offeror

c.Offeree has received the offer

d.Validity period of the offer has expired

4.3. Under the CISG,

  1. The offeree may not make alterations to the offer

b. Inactivity can constitute acceptance

c. The parties are free to agree on how to allocate risk of loss among themselves

d. Force majeure means that the seller can withdraw from the contract

4.4. Under the CISG, if the goods are defective

a.Buyer can always avoid the contract

b.Seller has always the right to repair the goods

c.Seller can usually repair the goods or deliver substitute goods

d.Buyer can always refuse delivery

4.5. Under the CISG, fundamental breach of the contract

a.Can only be committed by the seller

b.Means that the other party does not get what he reasonably expected under

the contract

c.Is a breach caused by force majeure

d.Is assumed if the party in breach doesn’t perform after an additional period of

time

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