49. 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:
a. The acceptance by the Italian company cannot be withdrawn under any circumstances.
b. The Italian company can withdraw the acceptance if the withdrawal reaches the U.S. before its acceptance.
c. The acceptance by the Italian company was effective when sent.
d. None of the above is correct.
50. 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:
a. No limitation of implied warranties is allowed.
b. The limitation must be conspicuous and specific.
c. The limitation must be agreed to by the French company.
d. The limitation is valid no matter what the form.
51. All of the following are remedies available under CISG except:
a. Money Damages.
b. Reformation.
c. Avoidance of the Contract.
d. Specific Performance.
52. If a U.S. buyer wants to avoid a sales contract with an Italian seller, the CISG states that the U.S. buyer:
a. Can avoid the contract only if there has been a fundamental breach by the Italian seller.
b. Cannot avoid the sales contract under any circumstances.
c. Can avoid the contract even for minor breaches by the Italian seller.
d. Can avoid if done anytime within 30 days after the goods arrive.
53. In the event that a buyer receives a shipment of seriously defective goods, under the CISG:
a. The buyer may accept the goods and reduce the amount paid to the seller accordingly.
b. The buyer must notify the seller of the defects within a reasonable time.
c. The seller may cure the defect up until the time for performance has expired.
d. The seller may request additional time to perform even though he will be late in so doing.
e. All of the above.
54. In the U.S., the remedy of specific performance is limited to those instances where:
a. Money damages would be sufficient, but the injured party does not want them.
b. The goods are unique.
c. The buyer does not want the goods for which he contracted.
d. The seller wants to force the buyer to take the goods.
55. 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:
a. U.S. Wheat would be liable for breach of contract and have to pay damages.
b. U.S. Wheat will have to get wheat from other sources and specifically perform.
c. U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance.
d. None of the above is correct.
56. 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:
a. The seller will win based on the doctrine of frustration of purpose.
b. The buyer will win since this is just a risk of doing business.
c. The seller will win because of res ipsa loquitur.
d. The buyer will lose because problems with shipment by sea are an excuse for nonperformance.
57. 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:
a. That Eastern won because Gulf should have foreseen this situation.
b. Gulf won due to commercial impracticability.
c. That Eastern lost because a 400 percent increase is too much of a hardship for Gulf.
d. None of the above would be the court’s decision in this situation.
58. Under CISG, all of the following are requirements to excuse nonperformance of a contract except:
a. An impediment is beyond a party‘s control.
b. An impediment was not reasonably foreseeable at the time contract was concluded.
c. Notice of the impediment was given to the other party.
d. The impediment is of such a monetary value as to shock the conscience.
59. 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:
a. Good excuse clause.
b. Out of control clause.
c. Force Majeure clause.
d. Excuse moi clause.
60. All of the following may be raised as reasons for nonperformance of sales contract except:
a. Impossibility.
b. Frustration of Purpose.
c. Commercial Impracticability.
d. Subjective Constraints.
61. The primary body of law in the U.S. dealing with domestic sales contracts is:
a. Uniform Commercial Code (UCC)
b. Convention on the International Sales of Goods (CISG)
c. Uniform Domestic Sales (UDS)
d. Convention on Domestic Contracts (CDC).
62. 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?
a. Both I and II.
b. Neither I nor II.
c. I only.
d. II only.
63. Contract laws in socialist countries tend to be:
I. Detailed, mechanical, and cumbersome.
II. Enforced by private companies operating on behalf of the state.
Which of the following is correct?
a. Both I and II.
b. Neither I nor II.
c. I only.
d. II only.
64. A states to B, “Within the next month, I will be placing an order for 100 Model A computers, so please give me your
best price.” B replies, “I will sell you this model computer for $500 each.” A enters into a contract to sell the
computers to C for a profit. Three weeks later, B refuses to sell the computers to A. Under the CISG:
a. B will win because the contract was not in writing.
b. B will win because of the mirror image rule.
c. A will win because B’s reply was a firm offer.
d. A will win because B had accepted unconditionally.
65. A German plaintiff had sold equipment to an American firm on open account. On the date the amounts were due,
the American firm owed the plaintiff 60,000 marks. At that time, the dollar was worth 2.5 marks. Three years later,
the plaintiff took a judgment against the American firm in the courts of New York. At the time of judgment, the
dollar was worth only 1.5 marks. The New York court may do which of the following:
a. Award judgment to the plaintiff in $24,000 of U.S. currency.
b. Award judgment to the plaintiff in $40,000 of U.S. currency.
c. Award judgment to the plaintiff in 60,000 D.M., German currency.
d. Dismiss the case. U.S. courts cannot hear cases involving foreign currencies.
66. If a merchant receives goods unsolicited with a note, “If I don’t hear from you, I assume you will keep them and pay
for them”, failure to respond to the sender is an acceptance
a. Unless a rejection is sent within three (3) days upon receipt
b. Silence is an acceptance
c. No acceptance
d. Must return the goods within three (3) days.
67. When one party clearly sees that the other contracting party will either not perform a substantial part of the contract,
this is a
a. Breach of contract
b. Anticipatory Breach
c. Impossibility of performance
d. Force Majeure
68. Negotiations style in Japan can be characterized as
a. Aggressive
b. Win–Win
c. Passive
d. Harmony, personal dignity, consensus
69. Paul has a contract to sell i-watches to a Jo Ann in Vietnam, and enter into a contract to purchase the i-watches
from Gregory in Silicon Valley. The Vietnam Government banned i-watches imported into the country.
Consequently, Paul cancels the contract with Gregory. Is “frustration of purpose”, and recognized in the United
States?
a. Breach of contract
b. Recognized in the United States
c. Generally not recognized in the United States
d. Anticipatory repudiation
70. Compare and contrast the mailbox rule with the receipt theory. What implications might these different rules have?
71. Compare and contrast the remedies for breach under both U.S. law and the CISG.
72. In what ways is the coverage of the CISG and the UCC similar? Different?
73. In what ways do both U.S. law and the CISG contemplate circumstances beyond a party’s control? How are these
similar and different from each other?
74. Identify at least 10 similarities between the CISG and the UCC and/or U.S. common law.
75. Identify at least 10 dissimilarities between the CISG and the UCC and/or U.S. common law.
76. Consider the benefits and detriments of a U.S. buyer and a German seller using U.S. law for a sale contract.
77. Consider the benefits and detriments of a U.S. buyer and a German seller using CISG law for a sales contract.
78. As a seller who fails to deliver goods on time, consider whether U.S. law or the CISG favors your interests.
79. Compare and contrast the remedies for breach under the CISG and U.S. law.
80. As an offeror, would you favor the offer/acceptance/revocation rules of the CISG or U.S. law?
81. Write a contract (between a U.S. buyer and a German seller) that includes some provision of German law.
82. Write that same contract using CISG law.
83. Re-write that contract using U.S. law.
84. Draft a CISG article that addresses the interpretation of “bi-lingual” contracts.
85. Draft a model statute regarding international e-contracts (perhaps considering rules for offer, acceptance, and
revocation).
Essay
Who will prevail in the following scenarios applying the CISG? Would your answer change if the parties
selected the UCC pursuant to a choice of law clause? Please provide a short explanation for each of your
answers.
86. Scenario
An attempt by an American buyer to introduce evidence of preliminary negotiations in order to interpret a written
contract in a breach of contract case against an Italian seller.
87. Scenario
A claim by a German buyer against an American seller alleging the seller’s failure to perform an oral agreement
relating to a sale of goods valued at U.S. $10,000.
88. Scenario
A claim of formation of a contract based upon a purported acceptance of an offer mailed by a Chinese offeree but
never received by the American offeror.
89. Scenario
An attempt by an American buyer to avoid paying a French seller for goods after ignoring the French seller’s request
for additional time to perform the contract, which goods were delivered six days after the date provided in the
contract.
90. Scenario
An attempt by an American buyer to avoid payment for goods received from a French seller based upon a letter
providing that the goods were “deficient in quality.”
91. Scenario
An attempt by an American consumer to sue a Chinese manufacturer for product defects which resulted in his
personal injury.