International Sale Of Goods ( Cisg ) Essay - 1070 Words

Introduction: Stylish Corporation is a manufacturing company that produces apparel and is currently located in the United States. The company is interested in expanding the business globally and are considering Mexico as the new location for a factory. The company would like to know the benefits and the obstacles they will encounter in this expansion. Do the benefits outweigh the obstacles? Facts and Laws: Aspects of U.S. laws that will affect the company in dealing with Mexico: 1. North American Free Trade Agreement (NAFTA), was signed in 1994, is a trade agreement between Canada, Mexico, and United States. NAFTA eliminated all trade barriers and created investment opportunity for businesses between these countries. The lower tariff will reduces export cost from the Mexico factory to the U.S. market, causing the company to have a larger profit margin compared to other countries that are not under this agreement. 2. U.N. Convention on Contracts for the International Sale of Goods (CISG), signed in 1988, this provides a uniform rules for the sale of good by the countries who have signed this agreement. The CISG contains rules on the interpretation of contracts, negotiation, and the form of contracts. However, some issues that might arise in a contract are not answered like the validity of the contract. This issue will depend on the country’s national law. The U.S. and Mexico have both signed CISG agreement. 3. The Foreign Corrupt Practices Act (FCPA), enacted in 1977,Show MoreRelatedThe United Nations Convention on Contracts for the International Sale of Goods (CISG)705 Words   |  3 Pagesfor the International Sale of Goods (CISG) The United Nations Convention on Contracts for the International Sale of Goods (CISG) was formed in Vienna in 1980 by the United Nations Commission on International Trade Law (UNCITRAL). The treaty which is commonly referred to as the Vienna Convention came in to force in the year 1988 upon ratification by several countries. Its main purpose is to provide a uniform and fair legislation that governs international contracts involving the sale of goods betweenRead MoreFacts About Blissful Dance Shoes862 Words   |  4 Pagesregime in the contract of international sale of goods between BDS and the foreign country There is no international law applied into the contract of the international sale of goods. Instead, the domestic law of the seller, buyer, or third party could be applied in the contract. Moreover, the parties usually refer to the CISG Convention , but this convention is a model law only. It means that the CISG is just a guideline rule for the parties in the international sale of goods. There is no obligationRead MoreThe United Nations Convention On Contracts867 Words   |  4 PagesUnited Nations Convention on Contracts for the International Sales of goods entered into force January 1 1988. Among the 79 states that have ratified or acceded to the treaty to date are Australia, Canada, the United States, Japan, the Republic of Korea, China, and Singapore. The Vienna Convention, as CISG is also known, was designed to systemise and rationalise international contracts in a particular region, drawing from a common legal framework. The CISG is divided into three substantive parts plusRea d MoreCisg2275 Words   |  10 PagesThe Impact of the CISG International Business Transaction and CISG What is CISG? CISG stands for Contracts on International Sale of Goods and it is a United Nation Convention. It was adopted in 1980 in Vienna convention as an international trade agreement. The main purpose of this convention was to eradicate any uncertainty, which was caused by distinct local laws, which concerned international trade. With the help of this agreement international trade became easy and hassle free. ThisRead MoreTreibacher Industrie, A.G. V Allegheny Technologies, Inc (2006)941 Words   |  4 PagesTreibacher disputed the meaning of the term â€Å"consignment†-the delivery term contained in both contracts.   TDY introduced experts in the metal industry who testified that the term â€Å"consignment,† according to its common usage in the trade, meant that no sale occurred unless and until TDY actually used the TaC.   Treibacher introduced evidence of the parties prior dealings to show that the parties, in their course of dealings (extending over a seven-year period), understood the term â€Å"consignment† to meanRead MoreDefinition Of Good Faith Becomes Binding By Virtue Of Application Of The Un Convention On Contracts3203 Words   |  13 Pagesconcept of good faith becomes binding by virtue of application of The UN Convention on Contracts for the International Sale of Goods, the UNIDROIT Principles of International Commercial Contracts and the European Principles of Contract Law as the most important international instruments on contract law and will be summarize as follows (I) Background. (II) Purpose and Applicability. (III) Similarities and Differences. (IV) Concept of Good faith. (V) Conclusion. (I) Background. International salesRead MoreTransfer Of Risks Of International Sales Of Goods1904 Words   |  8 PagesTransfer of risks in international sales of goods Item 1 Monograph Atiyah P. S, Adams J. N, MacQueen H, The Sale of Goods ( 11th ed, Pearson Education Limited 2005) This book focus on the domestic law of sale of goods. Chapter 20 in this book introduce transfer of risk and frustration of contrast in Sale of Goods Act 1979. Firstly, this chapter give me a well-rounded and clear understanding about the risk in the international sale of goods by comparing the distinction between the doctrines ofRead MoreThe United Nations Convention On Contracts2259 Words   |  10 PagesIntroduction Described as the ‘most succesful international document so far’, CISG has unified international sales law whilst protecting the freedom of contract by allowing Contracting States the option of taking exception to certain specified articles. This flexibility was instrumental in convincing states with disparate legal traditions to suscribes to an otherwise uniform code. A number of countries signed the CISG made delcarations and reservations as to the treaty’s scope, the UK howeverRead MoreSustainable Development and International Business Law Report3868 Words   |  16 PagesSustainable development and international business law 1) Executive summary This scenario involves four countries and four separate business transactions. Further, it involves several main legal issues which will be dealt with in the discussion. * The first issue is which law will govern the transactions between the parties – domestic or international law, and the implications of both. * The scenario raises the issue of the selection of incoterms which will best accommodate the interestRead MoreInternational Business Relations Between Countries And Different Legal Systems1841 Words   |  8 Pagesstate that International Business Transactions is a field which deals with commercial contracts between two or more countries. They can be ranging from the simplest form- trade to the most complicated kind of foreign direct investment. As a layman would understand it simply means an area of law that deals with international business relations between countries having different laws, rules and regulations. So one might think, when there is a contract of sale of goods, services or goods and services