Question 1

Under the CISG,a communication between the parties would be considered an offer when:

Accepted Answer

Under the CISG, an offer must be sufficiently definite and indicate an intention to be bound. An advertisement is generally not considered an offer, and leaving essential terms like quantity or price open would not make it sufficiently definite.

Question 2

All of the following may be raised as reasons for nonperformance of sales contract except:

Accepted Answer

Subjective Constraints are not a recognized reason for nonperformance of a sales contract. The other options (impossibility, frustration of purpose, and commercial impracticability) are recognized legal doctrines that may excuse performance of a sales contract under certain circumstances.

Question 3

All of the following are remedies available under CISG except:

Accepted Answer

Reformation is not a remedy available under the United Nations Convention on Contracts for the International Sale of Goods (CISG). The remedies available under CISG are money damages, avoidance of the contract, and specific performance. Reformation involves making changes to the terms of a contract to reflect the actual agreement of the parties, which is not a remedy provided for under CISG.

Question 4

Both the U.S.and France have ratified the Convention on Contracts for the International Sale of Goods (CISG).A buyer in France and a seller in the U.S.enter into a contract for the sale of widgets.If a dispute arises:

Accepted Answer

Both the U.S. and France have ratified the CISG, and the sale of widgets is an international sale. Therefore, the CISG applies as long as the parties did not exclude its application in the contract.

Question 5

If a U.S.company wants to limit its implied warranties in connection with a sale of goods to a French company,the CISG provides that:

Accepted Answer

The answer of If a U.S.company wants to limit its...

Question 6

International Sales Law:
I. Is not uniform because of vast political, cultural, and historical differences.
II. Is embodied in the Convention on the International Sale of Goods.
Which of the following is correct?

Accepted Answer

The answer of International Sales Law:
I. Is not uniform because...

Question 7

Under CISG,all of the following are requirements to excuse nonperformance of a contract except:

Accepted Answer

The monetary value of the impediment is not a requirement for excusing nonperformance under CISG. The other three requirements include the impediment being beyond a party's control, not reasonably foreseeable at the time of the contract, and notice of the impediment being given to the other party.

Question 8

A seller in France has a disagreement over a sales contract with a U.S.buyer.The case could be heard in either country.If the French seller starts looking for the best or most favorable court to have his case heard,it is known as:

Accepted Answer

Forum shopping refers to the practice of looking for the most favorable jurisdiction or court to have a legal dispute heard in, and it is often done to gain an advantage over the other party. In this case, the French seller is looking for the best court to have their case heard, which falls under the definition of forum shopping.

Question 9

U.S.Wheat Sales,Inc.has a contract with Zambia to supply 1,000,000 bushels of wheat.Before shipment,the U.S.government put an embargo on the sale of wheat to Zambia.U.S.Wheat cannot ship.In a legal action:

Accepted Answer

The doctrine of impossibility of performance applies when an unforeseen event prevents a party from fulfilling their obligations under a contract. In this case, the U.S. government's embargo on the sale of wheat to Zambia is an unforeseen event and makes it impossible for U.S. Wheat to ship the wheat. Therefore, U.S. Wheat will be excused from performance and will not be liable for breach of contract.

Question 10

Eastern Airlines contracted with Gulf Oil for a supply of jet fuel.An oil embargo resulted in a 400 percent increase in the price of oil.Gulf demanded a price increase from Eastern.Eastern sued to ensure its supply of oil at the contract price.The result in court was:

Accepted Answer

The answer of Eastern Airlines contracted with Gulf Oil for...

Question 11

The name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control makes performance more difficult than expected is:

Accepted Answer

The Force Majeure clause is the name of the clause put into international sales contracts to limit the liability of the parties in the event of an intervening and disruptive force beyond a party's control. The other choices are not commonly used terms for this clause.

Question 12

Buyers and sellers entered into a contract for the sale of nuts.The usual route used the Suez Canal.Prior to shipment,a war closed the canal.Because the freight charges would be so high by another route,the seller refused to ship.The buyer had to buy at a higher price elsewhere and sued the seller.At trial:

Accepted Answer

The buyer will win since the closure of the Suez Canal is a foreseeable risk in international shipping, and the seller is typically expected to bear such risks unless otherwise specified in the contract.

Question 13

If a question arises over a trade usage,the CISG provides that:

Accepted Answer

The CISG allows a court to consider trade usages if they are known or should have been known by the parties and are regularly used in the industry (Option B) or if the parties have explicitly agreed to be bound by those trade usages (Option C). Therefore, both options B and C are correct. Option A is incorrect, as the CISG allows for the consideration of trade usages under certain circumstances.

Question 14

A U.S.company sends a purchase order to an Italian shoe company.The Italian shoe company sends a letter confirming the purchase order.The CISG provides:

Accepted Answer

Under the CISG, an acceptance can be withdrawn if the withdrawal reaches the offeror before or at the same time as the acceptance.

Question 15

The primary body of law in the U.S.dealing with domestic sales contracts is:

Accepted Answer

The Uniform Commercial Code (UCC) is the primary body of law in the U.S. dealing with domestic sales contracts.

Question 16

If a U.S.buyer wants to avoid a sales contract with an Italian seller,the CISG states that the U.S.buyer:

Accepted Answer

According to Article 49 of the CISG, the U.S. buyer can avoid the contract if there has been a fundamental breach by the Italian seller. The CISG defines a fundamental breach as a breach that results in the buyer's loss of interest in the contract. Therefore, the U.S. buyer cannot avoid the contract for minor breaches or if the goods arrive and are found to be acceptable.

Question 17

In the event that a buyer receives a shipment of seriously defective goods,under the CISG:

Accepted Answer

Under the CISG, if a buyer receives a shipment of seriously defective goods, the buyer may accept the goods and reduce the amount paid to the seller accordingly (Choice A). However, the buyer must notify the seller of the defects within a reasonable time (Choice B). The seller may cure the defect up until the time for performance has expired (Choice C). The seller may not request additional time to perform even though he will be late in doing so (Choice D). Therefore, all the options mentioned in the question are correct, and the correct answer is E.

Question 18

In the U.S.,the remedy of specific performance is limited to those instances where:

Accepted Answer

Specific performance is a remedy typically used in cases where the subject matter of the contract is unique, and money damages would not be sufficient to compensate the plaintiff. This remedy is often used in cases involving real estate or artwork, for example. Therefore, the correct choice is B. None of the other options accurately reflect the circumstances in which specific performance would be appropriate.

Question 19

The following elements are all considered to be key elements materially altering the terms of an offer when included with an acceptance under the CISG except:

Accepted Answer

The specification of the ship to be used for carriage is not considered a key element materially altering the terms of an offer under the CISG. The other choices listed (price, place and time of delivery, settlement of disputes) are all considered key elements that materially alter the terms of an offer.

Question 20

The following are all problems faced by developing countries in their business contract relationships with wealthier nations except:

Accepted Answer

Lack of natural resources to use as collateral for credit is not a problem faced by developing countries in their business contract relationships with wealthier nations. The other options listed are all valid problems that developing countries may encounter in such relationships.

Quiz 4: Sales Contracts and Excuses for Nonperformance