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International Business Law

International business law refers to those regulations, which govern and deal with the legal interactions between countries, their governments, businesses and organizations to specify their rights, claims and responsibilities in their business dealings. These international laws are governed and enforced by the immense international bodies such as the United Nations and various conventions (Frick, 2009, p.15).

Problem one: international commercial dispute resolution

The possible outcome of the judgement will be guided by the principles of legal environment of international business. The possible outcome is that the Court of Appeal in the United States of America is likely to dismiss the case because the judgement is not valid in their jurisdiction. The court in France should have obtained jurisdiction for a company located in thye United States through lawful service of attorney (Frick, 2009, p.57). If the French court attempts to enforce their judgement on the company, it will argue that the method of service of process upon it was not satisfactory under the laws of the United States. If the Court of Appeal passes such a judgement, the plaintiff’s judgement is useless as the assets of the defendant are located in the United Sates (Schaffer& Agusti, 2009, p.34). The lawyers in France should have consulted an attorney in the United States and followed the requirements of both the United States and France to the letter. The process of making service of process upon a foreign defendant is addressed in the Hague Convention on the service abroad of judicial and extra-judicial documents in Civil and Commercial Matters (Schaffer &Augusti, 2009, p.50). The US Supreme Court in the UnitedState cannot handle the case as it lacks the power authority because the corporation belongs to other state and the pollution also took place outside the UnitedState. This case can be handled by the international court tasked with environment issues and its relation to the citizen of that republic.

Problem two: international contracting

International transacting aims at producing uniform rules of trade by having parties from different countries governed by the same contracts. This transaction is governed by CISG as it took place in the United States. Under the Convention of International Sale of Goods (CISG), the contract governs the sale of goods between parties in the United States and party whose place of business is another country (Kritzer, 2009, p.76). The convention is formed through the following ways. There are three issues in the formation of contract under CISG: the firm offers, the mailbox, and the battles of the form. The power and authority under CISG are limited to contractual issues and only govern issues pertaining the formation of the contract which are the rights and obligations of the parties in sale transaction. For Bill to pay the freight cost, Sam arranges for the facility called FCA (Free carrier) where Sam arranges for all for transportation but will be acting at the risk and the expense of Bill. The following are the universal liabilities under CISG, prevention of frauds between the parties in trade, warranty disclaimer, and battle of forms (Kritzer, 2009, p.88).

Problem 3: International movements of goods

Incoterms are the set of recognised terms which govern the international movements of goods; under this the responsibility of different stakeholders are defined. Sam is transacting with Bill on FOB (Free On Board) terms. Sam will arrange for the movement of the books up to the port of departure, but Bill will cater for the port changes (Frick, 2009,p 97). Sam is assured that Bill will pay because of the term of the contract and he will deliver the goods to Bill’s forwarder at the port; under FOB terms, Bill will pay for the insurance (Frick, 2009, p.111). Insurance for the goods on transit is quite a basic thing to protect against the loses and damages, but with this term of FOB, the insurance obligation rests with Bill; the two consignment are being exported on different conditions of FOB and CIF (Cost, Insurance and Freight) and cannot have one bill of landing, because in the later, the cost will be borne by Sam and is governed by the United Kingdom’s terms; from the means used, Howard is the only person who can inspect goods before payment because his responsibility starts when the books land at the destination port; non-negotiable bill of landing is drawn to a specific person and is not transferable in regards to the quantity or conditions of the goods, non-negotiable bill of landing is drawn to the order, who will be Howard (Kritzer, 2009, p.89). Sam should accept the bill stamped that way because there are the terms agreed on with the shipping company that do not involve inspection (Kritzer, 2009, p.92). The limit of the liability is equal to the value of $ 500.

International trade is an expensive affair and the good takes time to be delivered to the buyer thus all the payment cannot be made at once (Frick, 2009, p.100). To facilitate the trade and minimise hurdles, the use of letter of credit is fundamental. The letter of credit being a security documents should tally with other accompanying documents for it to be valid in all the above four transactions; these documents are not admissible as they do not tally and cannot be accepted. Little under this agreement will only pay for the goods once he receives and inspects them. The fact that they are accompanied by manufacturers warranty means that he can sue the company if they are defective and withhold payments (Schaffer and Agusti, 2009, p.201). In case the bank fell bankrupt before Little receives the consignment, the manufacture can recall the goods as they are still under his shipping agent till the moment they are received by Little. If the bank paid the money and the goods delivered were defective, the two parties can enter into arbitration to settle that the legal process governing the two states may not be applicable in one state (Frick, 2009, p.102).

No country in the world can survive without trading with other. In the process of the trade, there arise conflicts, which are dealt with by arbitration, jurisdiction and covered under different conventions. Hence countries have to adhere to them for smooth trade.

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