Question 1

If,in a contract under the CISG,a response to an offer contains material terms that are different,then the offer is held to be rejected and there is no contract.

Accepted Answer

This is known as the "mirror image" rule, which is a fundamental principle of the CISG. If the response to an offer contains different material terms, it is considered a counter-offer and the original offer is rejected. Therefore, there is no contract until the counter-offer is accepted.

Question 2

If,in a contract under the CISG,a seller delivers goods that the buyer believes do not conform to the terms of the contract,the buyer must notify the seller and give a chance to perform properly.

Accepted Answer

This is known as the buyer's obligation to give notice of non-conformity under Article 39 of the CISG. The buyer must notify the seller within a reasonable time after discovering the non-conformity and give the seller a chance to remedy the situation. Failure to give notice may result in the buyer losing the right to rely on the non-conformity as a basis for avoiding the contract or claiming damages.

Question 3

Services are excluded from the CISG.

Accepted Answer

The CISG only applies to the sale of goods and does not apply to services or immovable property.

Question 4

In Treibacher Industrie v.Allegheny Technologies,involving a dispute over the sale of powered metal from Treibacher of Austria to Allegheny of the U.S. ,Allegheny suddenly cancelled its order,forcing Treibacher to suffer a loss.It sued under the CISG.The appeals court held that the matter would be resolved under the UCC because that was the relevant law to this transaction.

Accepted Answer

The question states that the dispute involved the sale of powered metal from Treibacher of Austria to Allegheny of the U.S., and that Treibacher sued under the CISG. Therefore, it is more likely that the matter would be resolved under the CISG, which is the relevant law to international sales contracts, rather than the UCC, which is the relevant law to domestic sales contracts in the U.S.

Question 5

If some term in a contract is unclear or in dispute,the courts are instructed by the CISG to look to industry or trade practices for guidance.

Accepted Answer

The CISG (United Nations Convention on Contracts for the International Sale of Goods) does provide guidance to courts to look to industry or trade practices if a term in the contract is unclear or in dispute. This is stated in Article 9 of the CISG.

Question 6

In Treibacher Industrie v.Allegheny Technologies,involving a dispute over the sale of metal from Treibacher of Austria to Allegheny of the U.S. ,Allegheny cancelled its order,forcing Treibacher to suffer a loss.It sued under the CISG.The appeals court held that the court would look to prior dealings of the parties to determine how they intended their relationship to work,not the words in their contract.

Accepted Answer

The appeals court held that the court would look to prior dealings of the parties to determine how they intended their relationship to work, not the words in their contract.

Question 7

In Treibacher Industrie v.Allegheny Technologies,involving a dispute over the sale of powered metal from Treibacher of Austria to Allegheny of the U.S. ,Allegheny suddenly cancelled its order,forcing Treibacher to suffer a loss.It sued under the CISG.The appeals court held that the CISG did not apply to the sale of metal,so either Austrian law or the UCC would govern.

Accepted Answer

The appeals court in Treibacher Industrie v. Allegheny Technologies held that the CISG did apply to the sale of metal, as it is a contract for the sale of goods between parties in different countries that are signatories to the CISG.

Question 8

Under the CISG both oral and written contracts can be enforced;the judge looks to the past dealings of the parties when there is confusion.

Accepted Answer

The CISG allows for both oral and written contracts to be enforced, and in cases of confusion, the judge will look to the past dealings of the parties to interpret the contract.

Question 9

Because of the extra complexities in international sales,the CISG requires a formal written and signed contract.

Accepted Answer

The CISG does not require a formal written and signed contract, it can be a contract formed through any means, including orally or through the behavior of the parties. However, it is recommended to have a written contract in order to avoid disputes and clarify the terms of the agreement.

Question 10

In Treibacher Industrie v.Allegheny Technologies,involving a dispute over the sale of powered metal from Treibacher of Austria to Allegheny of the U.S. ,Allegheny suddenly cancelled its order,forcing Treibacher to suffer a loss.It sued under the CISG.The appeals court held that under the CISG the court requires the parties to follow the written words of the contract;since they covered this matter,Allegheny had the right to cancel without penalty.

Accepted Answer

The CISG generally requires parties to adhere to the terms of the contract, but it also considers the intent and practices of the parties, as well as trade usages. The appeals court would not automatically allow cancellation without penalty if it contradicts the contract's terms or established practices.

Question 11

The U.N. ,which sponsored the CISG,discourages the use of arbitration of disputes that occur under the CISG.The parties must choose the courts of one of the parties to the contract.

Accepted Answer

The CISG does not discourage the use of arbitration for disputes that occur under the contract. However, it allows the parties to choose courts or arbitration as a means of resolving their disputes.

Question 12

Modern international commercial law is now dominated by a set of rules agreed upon by merchants around the world and by private resolution of most disputes.

Accepted Answer

The development of international commercial law has resulted in the adoption of a set of commonly agreed-upon rules by merchants around the world, known as the lex mercatoria or the law merchant. Additionally, many commercial disputes are now resolved through private arbitration or mediation rather than through traditional court systems.

Quiz 11: Domestic and International Sales