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Chapter 1 Course Introduction Quiz 1

1、 问题:Which is the international convention that regulates the negotiation, conclusion and implementation of international sales contract?
选项:
A:UCP600
B:Contract Law of PRC
C:CISG
D:INCOTERMS 2010
答案: 【CISG

2、 问题:Compared with domestic trade, what are the risks that are  special for international trade?
选项:
A:Different language
B:Different culture
C:Different currency
D:Long distance
E:Different legal system
F:Political risk
答案: 【Different language;
Different culture;
Different currency;
Long distance;
Different legal system;
Political risk

3、 问题:International rules, such as UCP, have the same binding effect as laws.
选项:
A:正确
B:错误
答案: 【错误
分析:【International rules have no binding effect unless they are integrated into the contracts.

4、 问题:Domestic laws could be ignored when we conducting business internationally.
选项:
A:正确
B:错误
答案: 【错误
分析:【Domestic laws are one important part of the legal environment of international trade.

5、 问题:There is no difference between domestic trade and international trade.
选项:
A:正确
B:错误
答案: 【错误
分析:【International trade is riskier and more complex than domestic trade.

6、 问题:Import is just an inverse process of export, and no special attention should be paid.
选项:
A:正确
B:错误
答案: 【错误
分析:【Import is not simply an inverse process of export. Special attention should be paid to many details. For example, goods may have to go through stricter inspection in import than in export.

7、 问题:INCOTERMS 2010  regulates the practice of payment by letter of credit.
选项:
A:正确
B:错误
答案: 【错误
分析:【INCOTERMS 2010 includes rules about 11 trade terms.

8、 问题:As most of the trade in the world today refers to the exchange of visible goods rather than invisible goods, many rules, regulation and conventions concerning trade in the world such as Incoterms, United Nations Convention on Contracts for International Sale of Goods (CISG), Uniform Customs and Practice for Documentary Credits (UCP) etc. are all made to deal with visible goods trade.
选项:
A:正确
B:错误
答案: 【正确

9、 问题:Transit trade refers to the transaction involving importing goods from overseas for further processing and then re-exporting the goods abroad.
选项:
A:正确
B:错误
答案: 【错误
分析:【Transit trade过境贸易,which can be further divided into direct transit trade and indirect transit trade, refers to the transaction involving goods which are transported from the producing country to the consuming country via a third country’s border.

10、 问题:Entrepot trade refers to the transaction involving importing goods from overseas for further processing and then re-exporting the goods abroad.
选项:
A:正确
B:错误
答案: 【正确
分析:【entropot trade转口贸易,involves only one party, who is the importer, the processor and at the same time the exporter.

【作业】Chapter Two Business Negotiation Case Study for Business Negotiation in International Trade

1、 问题:    Company B sent us a buying offer, subject to our reply there before July 22.    On July 24, we telexed our acceptance to the offer but received no reply. As the market price kept rising, we unexpectedly received a telex on August 24 from Company B requesting us to make shipment before the end of August as specified in the offer, or they would reserve the right to the claim against us for compensation.    Question: Was the contract between B and us established? Why?
评分规则: 【 No, there is no contract established between B and us.
As per CISG, a late acceptance is nevertheless effective as an acceptance if without delay the offeror orally so informs the offeree or dispatches a notice to that effect.(2 points). In this case, we accepted the offer from B after July 22, so it was a late acceptance.(1points).  However, B didn’t reply, so the acceptance was not effective.(1 points). 
B’s request on August 24 is a new offer, if we didn’t accept it, there should be no contract established. As the market price kept going up, we could either keep silent or decline their request.(The first sentence is necessary for you to get the 3 points here. You don’t necessarily need to include the second sentence.)

2、 问题:China’s Company A made an offer to American Company B on October 2 for 500 dozen Men’s Shirts, 100% Cotton, at USD 84.50 per dozen CIF New York, subject to B’s reply reaching before October 15.A received a reply from B on October 10, “Your price is on the high side. We can accept your offer at USD 80 per dozen.”A received another email from B on October 13, “We accept your offer of October 2. The relevant L/C has been established.”A didn’t made any response or delivery for the price was increasing. Later, B insisted A broke the contract and claimed for compensation.Question: Do you agree with B? Why?
评分规则: 【 No, I don’t agree with B. There was no contract concluded.
(2)Company A made an irrevocable firm offer to Company B, for it was sufficiently definite with a validity. Within validity, B replied but changed price. Thus, it was a counteroffer, for it contained material alteration. But A didn’t reply.
(3)The counteroffer terminates A’s offer, so B’s email on October 13 was a new offer instead of acceptance. A didn’t reply. As per CISG, silence and inactivity are not acceptance. Without A’s acceptance, there was no contract.

3、 问题:       On June 1st, A Swiss buyer delivered the following to the Chinese seller "please rush price quotation for the following goods if you don’t hear from me within three days after I received your quotation, consider your offer as accepted."      The seller delivered the quotation to the buyer on June 3, and the buyer did not respond until June 10.      Later the buyer rejected the contract that the seller believed has been concluded.     Question: Contract concluded?
评分规则: 【 The contract is concluded.(1)Both Switzerland and China are the member states in the CISG. Since the two parties has not ruled out the CISG, so this case should be restricted by the CISG;
As the offeree(the buyer) is voluntarily willing to be legally bound by the contract if he does not respond to the seller within 3 days after receiving the quotation(offer)–"please rush price quotation for the following goods if you don’t hear from me within three days after I received your quotation, consider your offer as accepted."
A silence acceptance can become effective when it is written clearly beforehand in the relevant offer or inquiry.

4、 问题:Our company imports from abroad a batch of agricultural products and resells them to an American company. Our company makes an offer to the American company. The next day the American company accepts our offer completely. And they request us to offer the certificate of origin. Two weeks later, the American businessman opens an L/C to us When we are prepared to dispatch the goods, we receive the advice from the Commodity Inspection Bureau that the certificate of origin should not be issued because the goods are not produced by Chinese company. Then we inform the American businessman to cancel the clause which required to offer the certificate of origin, AMERICAN BUSINESSMEN REJECTED. Then we put forward that we never agree to provide the certificate of origin, so it is not our duty to offer it. However, they believe that it is our duty to offer. Please try to make arbitration on this case according to the CISG.
评分规则: 【 We breached the contract and shall be liable for compensation.
(1)The USA and China are the member states in the CISG. Since the both parties don’t eliminate and reserve for the application of the CISG, this case shall be settled according to the CISG.
(2)When we received the additional condition acceptance for the offer from the American businessman, we did not raise objection. So the acceptance is regarded to be valid. It is our duty to offer the certificates of origin.
(3)The American businessman has opened an L/C according to the acceptance. When we received the L/C, we did not raise objection and were prepared to dispatch the goods according to the L/C, which means that we  agree to provide the certificate of origin.
(4)That the Commodity Inspection Bureau refused to issue the certificates of origin to us is none of business of the American businessman, and it is we who breached the contract.

5、 问题:As an exporter, we cable an American businessman to export agricultural products. Beside the necessary items stated in the offer, the clause "Packing in Sound–bags” is also added in. During the validity of the offer, the American businessman replies "Refer to your telex first accepted, Packing in new bags". When we receive the above reply, we are ready for shipment. The international market price for the agricultural products tumbled a few days ago. The American businessman replies that the contract was not established because we did not confirm when they changed the packing condition. We insists that the contract has been established. So the parties occur this argument. How to handle this case?
评分规则: 【 The contract has been established. 
In this case the American businessman’s packing change belongs to a substantial change(2分). It constitutes the effective acceptance.(2分)
 So the contract is established(1分). And the conditions on the contract are subject to the conditions on the offer and to the changes on the acceptance.(2分)

6、 问题:A Chinese intentional engineering contracting company asks an Italian supplier to make an offer for us to sell a batch of steel on May 3 by telex. In our telex statement, we require that this offer is to calculate the specialist of a building and determine whether or not to participate in bidding. We must tender the tenderer on May 15 and the bid opening date is on May 31. The Italian supplier cables us the offer on May S for the above mentioned steel. We calculate the price on his offer and submit the tender to the tenderer on May 15. The Italian supplier sends a telex to revoke his May 5 offer On May 20, because of the rising price of the steel market. We immediately reply to them that we don’t agree to revoke the offer. So, both sides make a dispute on the revocation of the offer. Then on May 31, we bid successfully. We immediately telex the Italian supplier to accept the May 5 offer. But the Italian supplier insists that they have canceled the offer on May 20. The contract is not established However, we believe that the contract is established. Both sides argue. Hence both sides agree to submit it to arbitration. Question: If you are an arbitrator how to make an arbitration? Explain the reasons.
评分规则: 【 The contract is established. (1分)The reasons are as follows:(1)Both Italy and China are the member states in the CISG. The telex exchanged by the two parties has not ruled out the CISG, so this case should be restricted by the CISG;(1分)
(2)The Italian supplier’s offer is irrevocable; (1分)1)We have definitely notified the Italian supplier the intentions why we invite this offer in our inquiry;(2分)2)The Italian supplier is aware of our intention and makes an offer for us. We have the reason to believe that the offer is irrevocable, and participate in the bid with the trust;(2分)3)Though the offer has not stipulated the validity, it should be regarded that the time is reasonable and effective. In this case the reasonable time should be regarded as several days after the opening date;(2分)
(3)The Italian supplier cabled to revoke the offer on May 20, we made an immediate rejection, so the revocation cannot be established. According to the regulations of the CISG, the offeree has the reasons to trust that the offer is irrevocable and acts in the trust, the offer can not be revoke;
When we bid successfully, we advise the Italian supplier immediately that the acceptance is effective. The contract comes into effect.

7、 问题:A Britain businessman (Businessman A) made an offer to a federal Germany businessman(businessman B) on May 3 to sell a certain batch of goods. Businessman B was in the receipt of this offer the next day(May 6). Businessman B made a complete answer to accept the offer on the morning of May 6. After Businessman A sent the offer, he found the commodity prices upward, hence he cabled Businessman B to withdraw the offer on the afternoon of May 7. It was on the morning of May 8 that Businessman A received the acceptance from Businessman B. Question: (1) According to the Britain law, is it legal for businessman A to withdraw the offer? (2) If the case is applied to the CISG, do both sides have contract relationship?
评分规则: 【 (1)According to the Britain law, it is illegal for Businessman A to withdraw the offer. (1分)According to the British law, an acceptance, once sent out, is effective immediately, (1分)and in this case Businessman B makes a promise on the morning of May 6, the contract between them has come into effect.(1分)
(2)According to the CISG, between the both parties exists the contract relationship. (1分) According to the CISG, an offer can be withdrawn before the offeree advises the commitment. However, in this case, Businessman B has made a commitment before Businessman A makes the withdrawal advice. So Businessman A cannot withdraw. (2分) The commitment made by Businessman B has come into effect when it reaches Businessman A on the afternoon of May 8. The contract is formed.(2分) 

8、 问题:One morning, a French businessman paid a visit to one of our exporters to purchase a certain batch of goods. We made an oral offer and he did not answer. The French businessman visited again that afternoon and accepted the morning’s offer unconditionally. At that time, we had also learned that there was an upward tendency in the international market. So how to handle this situation, why?
评分规则: 【 France and China are the member states in the CISG. Both parties shall be  bound to the CISG.
According to the CISG on oral offer, the contract can be established on the condition that it shall be immediately accepted.
When we offered that morning, the French businessman did not reply or put forward any requirement, the contract will not be established. 
Accordingly, we can refuse (1分)or raise the price(1分) to make a new quotation according to the upward price.

9、 问题:One of our exporters makes an offer to an Italian businessman, the offer is subject to the reply reaching here on 10th of this month. Then the Italian businessman cables to inform us of accepting this offer on 9th. Because of the delay of the Telegraph Office, we receive his acceptance notice on the morning of the 11th of this month. However, we get the message that the market price is upward. So what shall we do?
评分规则: 【 (1)Italy and China are the member states in the CISG. During the negotiation the two parties did not exclude or make any reservations, therefore, both parties shall be bound to the CISG. 
(2)According to the CISG, the late acceptance can be accepted if there is some late acceptance letter or written documents stating that the acceptance was sent in time and in the normal transport to the offeror. The late acceptance is invalid unless the offeror informs the offeree in oral or written ways without delay.
According to the CISG, the acceptance cable which we receive from the Italian businessman on the 11th of this month is caused by the transport delay. Therefore, if we don’t agree on this deal, we shall inform them by cable as soon as possible that the offer is invalid. (2分)If we are willing to conclude this deal and make a contract on the basis of the offer for some reasons, we can reply to the Italian businessman to confirm. If we don’t reply, we will be default.(2分)

10、 问题:One of our foreign trade companies received an offer from the D company which is in Paris, France on July 16, 2009: "500 MERTICTON TINPLATE USDOLLARS540 CFR CHINA PORT AUGUST SHIPMENT SIGHT L/C SUBJECT TO YOUR REPLY REACHING US BY JULY 20. " We replied on July 17 stating that “we can accept the offer if the unit price is USD 500.00 CFR CHINA PORT; if there are some disputes, arbitration in China”. The D company replied by cable on July 18, “as the market is firm, the price can not be reduced;the arbitration can be accepted, and reply as soon as possible”. There is an upward tendency in the tinplate’s price at the same time. So we replied by cable “we accept your offer of 16th. The L/C has been established through the Bank of China, please confirm”. However the French businessman did not confirm and returned the L/C. Question: Is the contract established? Do we make any mistakes? Explain the reasons
评分规则: 【 The contract is not established.
The reason is that the D company made an offer on July 16th, and we made a counter-offer on July 17th, then the offer of July 16 was invalid. 
We have two mistakes: (1) We should not accept the D company’s offer of July 16". We had better accept the offer of July 18th. (2)When we make acceptance, we shall not use the wording or the sentences such as "please confirm”.

11、 问题:According to a French businessman’s inquiry. one of our exporters makes an offer to sell a kind of goods, subject to reply reaching us by 5th of this month. The French businessman cables to accept the offer on 4th of this month. Because of delay of the Telegraph Office, we receive his cable on the morning of the 6th of this month. A the same time, we cable to refuse the offer since the market price increases. However, the French businessman believes that it is not his duty to make the delay of the acceptance notice and insists that the contract has been established. We don’t agree on it. Therefore we prosecute to the court. What do you think the judge’s judgement is? If we don’t refuse upon receiving the offer, how to make a judgment? Explain the reasons
评分规则: 【 (1)Both French and China are the member states in the CISG.
(2)According to the CISG, the mailed late acceptance has the accept effect, unless the offeror informs the offeree with the oral or written notice without delay that the offer is invalid. 
Since we refuse by cable as soon as possible upon we receive the late acceptance, the contract is not established.
(4)If we don’ t refuse the offer once we receive the cable, it should be regarded that the contract is established.

12、 问题:A Beijing company made an offer to a Paris company, stating that the offer is firm until March 10. This offer was sent by EMS on March 1. Then the Beijing company found there was something wrong on the offer and decided to inform the Paris company to withdraw this offer by cable. Can this offer be withdrawn? What are the reasons?
评分规则: 【 Yes, this offer can be withdrawn, the reasons are as follows: 
(1)China and France are both the member states in the CISG. They both use the CISG.  
(2)According to the provisions of the CISG, an offer, even an irrevocable offer, also can be withdrawn. The offer can be withdrawn on the condition that the withdrawal notification reaches the offeree on or before the time.
(3)The above offer belongs to a kind of “irrevocable offer” in the CISG. It can be withdrawn on the condition that it doesn’t reach the offeree. The EMS of March 1st cannot reach the Paris company on March 2nd . So the cable of the withdrawal notice which is sent on March 2nd can reach the offeree earlier than the time when the offer reaches the offeree.

Chapter Two Business Negotiation Test for Business Negotiation in International Trade

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