Question 1

In what ways is the coverage of the CISG and the UCC similar? Different?

Accepted Answer

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Question 2

Contract laws in socialist countries tend to be:
I. Detailed, mechanical, and cumbersome.
II. Enforced by private companies operating on behalf of the state.
Which of the following is correct?
A) Both I and II.
B) Neither I nor II.
C) I only.
D) II only.

Accepted Answer

Socialist countries tend to have highly detailed and regulated contract laws, making them cumbersome for individuals and businesses to navigate. However, enforcement is typically done by the state rather than private companies.

Question 3

Write that same contract using CISG law.

Accepted Answer

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Question 4

As a seller who fails to deliver goods on time, consider whether U.S. law or the CISG favors your interests.

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Question 5

Paul has a contract to sell i-watches to a Jo Ann in Vietnam, and enter into a contract to purchase the i-watches from Gregory in Silicon Valley.  The Vietnam Government banned i-watches imported into the country. Consequently, Paul cancels the contract with Gregory.  Is "frustration of purpose" recognized in the United States?
A) Breach of contract
B) Recognized in the United States
C) Generally not recognized in the United States
D) Anticipatory repudiation

Accepted Answer

Frustration of purpose is generally not recognized in the United States as a valid defense to breach of contract. Paul may be able to claim impossibility or impracticability as a defense, but frustration of purpose is not typically recognized.

Question 6

When one party clearly sees that the other contracting party will either not perform a substantial part of the contract, this is a:
A) Breach of contract.
B) Anticipatory Breach.
C) Impossibility of performance.
D) Force Majeure.

Accepted Answer

An anticipatory breach occurs when one party clearly sees that the other contracting party will not perform a substantial part of the contract. This can allow the non-breaching party to terminate the contract and seek damages. A breach of contract occurs when one party has actually failed to perform as promised. Impossibility of performance and Force Majeure are related to situations where performance becomes impossible or impractical due to unforeseen events beyond the control of the parties.

Question 7

Write a contract (between a U.S. buyer and a German seller) that includes some provision of German law.

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Question 8

Compare and contrast the remedies for breach under the CISG and U.S. law.

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Question 9

Negotiations style in Japan can be characterized as:
A) aggressive.
B) win-win.
C) passive.
D) harmony, personal dignity, consensus.

Accepted Answer

Negotiations style in Japan prioritizes harmony, personal dignity, and consensus. The Japanese culture values relationships and focuses on maintaining a positive connection with the other party, which often leads to a non-confrontational approach. The consensus-building approach helps in ensuring the long-term relationship between the parties. Therefore, the best choice is D.

Question 10

In what ways do both U.S. law and the CISG contemplate circumstances beyond a party's control? How are these similar and different from each other?

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Question 11

Consider the benefits and detriments of a U.S. buyer and a German seller using U.S. law for a sale contract.

Accepted Answer

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Question 12

A states to B, "Within the next month, I will be placing an order for 100 Model A computers, so please give me your best price." B replies, "I will sell you this model computer for $500 each." A enters into a contract to sell the computers to C for a profit. Three weeks later, B refuses to sell the computers to A. Under the CISG:
A) B will win because the contract was not in writing.
B) B will win because of the mirror image rule.
C) A will win because B's reply was a firm offer.
D) A will win because B had accepted unconditionally.

Accepted Answer

B's statement "I will sell you this model computer for $500 each." can be considered a firm offer under the CISG. A's statement to C indicating that he would be placing an order for 100 Model A computers indicates that there was both an offer and acceptance. B's refusal to sell the computers to A is a breach of contract, and A would likely prevail in a lawsuit. The fact that the contract was not in writing does not affect the validity of the contract under the CISG. The mirror image rule only applies to acceptance of an offer, and in this case, B's statement was an acceptance of A's offer.

Question 13

As an offeror, would you favor the offer/acceptance/revocation rules of the CISG or U.S. law?

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Question 14

Compare and contrast the mailbox rule with the receipt theory. What implications might these different rules have?

Accepted Answer

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Question 15

Consider the benefits and detriments of a U.S. buyer and a German seller using CISG law for a sales contract.

Accepted Answer

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Question 16

Identify at least 10 similarities between the CISG and the UCC and/or U.S. common law.

Accepted Answer

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Question 17

Identify at least 10 dissimilarities between the CISG and the UCC and/or U.S. common law.

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Question 18

If a merchant receives goods unsolicited with a note, "If I don't hear from you, I assume you will keep them and pay for them", failure to respond to the sender is an acceptance
A) unless a rejection is sent within three (3) days upon receipt
B) silence is an acceptance
C) no acceptance
D) must return the goods within three (3) days.

Accepted Answer

Under most legal systems, receiving unsolicited goods does not constitute acceptance of an offer to buy, and the recipient is under no obligation to pay for them or return them. Silence or inaction does not equate to consent or acceptance in such cases.

Question 19

Compare and contrast the remedies for breach under both U.S. law and the CISG.

Accepted Answer

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Question 20

A German plaintiff had sold equipment to an American firm on open account. On the date the amounts were due, the American firm owed the plaintiff 60,000 marks. At that time, the dollar was worth 2.5 marks. Three years later, the plaintiff took a judgment against the American firm in the courts of New York. At the time of judgment, the dollar was worth only 1.5 marks. The New York court may do which of the following:
A) award judgment to the plaintiff in $24,000 of U.S. currency.
B) award judgment to the plaintiff in $40,000 of U.S. currency.
C) award judgment to the plaintiff in 60,000 D.M., German currency.
D) dismiss the case. U.S. courts cannot hear cases involving foreign currencies.

Accepted Answer

The New York court will calculate the judgment based on the rate of exchange at the time the debt was incurred, which was 2.5 marks per dollar. Therefore, the amount owed was initially $24,000 (60,000 marks divided by 2.5). However, at the time of judgment, the dollar had depreciated to 1.5 marks. Therefore, the American firm now owes the plaintiff 90,000 marks (60,000 marks multiplied by 1.5). To convert this to U.S. currency, divide 90,000 marks by 2.5, which equals $36,000. However, since the plaintiff had initially extended credit on an open account basis and did not agree to be paid in U.S. dollars, the court will award judgment in the plaintiff's native currency, which is German marks. Therefore, the correct answer is B, award judgment to the plaintiff in $40,000 of U.S. currency.

Quiz 4: The Formation and Performance of Contracts for the Sale of Goods

In what ways is the coverage of the CISG and the UCC similar? Different?

Contract laws in socialist countries tend to be: I. Detailed, mechanical, and cumbersome. II. Enforced by private companies operating on behalf of the state. Which of the following is correct?

Write that same contract using CISG law.

As a seller who fails to deliver goods on time, consider whether U.S. law or the CISG favors your interests.

When one party clearly sees that the other contracting party will either not perform a substantial part of the contract, this is a:

Write a contract (between a U.S. buyer and a German seller) that includes some provision of German law.

Compare and contrast the remedies for breach under the CISG and U.S. law.

Negotiations style in Japan can be characterized as:

In what ways do both U.S. law and the CISG contemplate circumstances beyond a party's control? How are these similar and different from each other?

Consider the benefits and detriments of a U.S. buyer and a German seller using U.S. law for a sale contract.

As an offeror, would you favor the offer/acceptance/revocation rules of the CISG or U.S. law?

Compare and contrast the mailbox rule with the receipt theory. What implications might these different rules have?

Consider the benefits and detriments of a U.S. buyer and a German seller using CISG law for a sales contract.

Identify at least 10 similarities between the CISG and the UCC and/or U.S. common law.

Identify at least 10 dissimilarities between the CISG and the UCC and/or U.S. common law.

If a merchant receives goods unsolicited with a note, "If I don't hear from you, I assume you will keep them and pay for them", failure to respond to the sender is an acceptance

Compare and contrast the remedies for breach under both U.S. law and the CISG.