Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 4

Lynn is an author living in Nevada. She contracted with a company in China, which promised to print her custom children's books. After receiving Lynn's payment, the company disappeared without performing. Lynn wants to sue for fraud, but the contract does not say anything about which country's law will be used to resolve disputes. Both China and the United States are signatories of the CISG. Will the CISG apply in this case? (a) Yes, because both countries are signatories.
(b) Yes, because the parties did not opt out of the CISG.
(c) No, because the contract does not involve goods.
(d) No, because the CISG does not establish rules for fraud.