Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by
A) Spanish law.
B) the provisions in the laws of both countries that are similar.
C) the UCC.
D) the United Nations Convention on Contracts for the International Sale of Goods.

Question

Quizplus · Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a treaty that governs contracts for the sale of goods between parties from different countries. Both Spain and the United States are parties to the treaty, and as such, the CISG would govern this contract. The UCC (answer C) only applies to contracts for the sale of goods within the United States, and the provisions in the laws of both countries that are similar (answer B) would be difficult to apply and enforce in practice. Spanish law (answer A) would not apply as the sale is taking place outside of Spain.

Rodeo, SA S.A