Summary of the course – EMBA-BS Y3

1. Incoterms – DDP

1

Selling a product DDP (Delivered Duty Paid):

Refers to a maritime commercial transaction in which the agreed price includes the costs incurred by the goods until they are loaded onto the vessel designated by the purchaser.
Means that the seller bears all the costs and risks involved in bringing the goods to the buyer’s premises.

2. International agreement – Form

1

Which statement is correct?

A writing is always needed for the validity of an international agreement.
Generally, an international agreement may be oral.

3. Which elements constitute the normative framework of international trade?

1

North Atlantic Treaty Organization (NATO)
Legal systems of States
Rules proposed by intergovernmental organisations
International treaties
Private rules proposed by private international organisations

4. Incoterms – Ex Works

1

Selling a product Ex Works means:

That the seller bears all the costs and risks involved in bringing the goods to the buyer’s premises.
That the seller will place the goods at the disposal of the buyer at the seller’s premises or at another named place, and will not bear any cost nor perform any formality after that.

5. Distribution agreement – Guarantees

1

In a distribution agreement, if the seller is not paid upon delivery of his products to the buyer:

The seller cannot limit his risks, except if he asks the buyer to provide a bank guarantee.
The seller may easily limit his risks, at no cost for him nor for the buyer, by stipulating a clause under which he will retain ownership of the products until they are fully paid-up.

6. What is applicable law?

1

Applicable law is a conflict rule.
The set of rules and principles that apply to a case (and that a court or arbitrator should apply to a particular case to decide the rights and obligations of the parties involved).
Applicable law is a substantive law.

7. What is the significance of dispute resolution clauses in contracts with international implications?

1

They prevent international disputes by providing for mediation.
They define the substantive laws applicable to international cases.
They establish the competent forum—either a national court or an arbitral tribunal—for resolving any future dispute.

8. Private international law

1

Which statements are correct?

Private international law deals mainly with the relationships between private parties.
Private international law deals mainly with the relationships between States.
Private international law is a coherent body of transnational rules, controlled by transnational courts, which govern private transnational relationships.
There exists an international court, which is competent to judge any international business case.
Private international law is not an integrated legal system; instead, several legal systems address international matters.

9. What is the role of a mediator in international disputes?

1

To facilitate a negotiation process
To impose a decision on the conflicting parties
To represent one of the conflicting parties

10. What is an arbitration agreement?

1

Legal document for court litigation
Contract between parties to resolve disputes through arbitration
Mutual understanding between parties aiming at settling a dispute

11. IP – Patent – Assets

1

Which assets can you protect with a patent?

Technical process
Any code of software
Commercial name
Idea, concept
Domain name
Company name
Design, shape of products

12. What is the main purpose of private international law?

1

Enforcing international contracts
Adjudicating international disputes
Determining which rules apply to international cases and which courts are competent to adjudicate international disputes

13. Incoterms – Definition

1

What are the Incoterms?

A governing law.
International commercial terms dealing with delivery terms, transportation costs, export and import formalities, transfer of ownership, transfer of risks.
Private terms proposed by the International Chamber of Commerce (ICC).

14. International dispute – State courts vs arbitral tribunals

1

What are the fundamental differences between State courts and arbitral tribunals?

Arbitral tribunals are competent only if the parties agree.
Arbitral tribunals are involved in resolving disputes falling under their jurisdiction, while state courts provide ”private justice”.
State courts embody the sovereignty of states, while arbitral tribunals embody “private justice”.

15. EU law – Applicable law and jurisdiction

1

How can we determine the applicable law and the competent courts in the European Union (EU)?

By applying EU regulations
By applying an international convention (a treaty)
By applying the European civil code
By applying the laws of the Member States

16. European Union law – Law applicable to contracts

1

In case of litigation relating to a contract entered into between parties residing in different Member States of the European Union, if the parties did not choose the governing law, the applicable law shall be determined by:

An international convention (a treaty)
A regulation of the European Union (an EU regulation)
The laws of the Member States

17. International agreement – Jurisdiction

1

Parties to an international agreement may decide that any litigation arising out in connection with the contract shall be:

Submitted to the jurisdiction of the courts of a neutral State
Finally settled by a mediator, whose decision will be binding on the parties
Submitted to the exclusive jurisdiction of the courts of the State of one party
Settled by arbitrators
Submitted to the non-exclusive jurisdiction of the courts of the State of one party

18. IP – Trademark – Assets

1

Which assets can you protect with a trademark?

Idea
Slogan
Code of software
A distinctive music or sound identifying products or services
Logo
Commercial name
Domain name
Concept
Company name
Brand
Data
Images, patterns, shapes, packagings of goods, in each case identifying goods or services and distinguishing them from others
Technical process
Long texts

19. International agreement – Governing law

1

The parties to an international agreement may decide that it will be governed by:

European law
Incoterms
The laws of the European Union
Its own terms and conditions (= the agreement shall not be governed by the laws of any State)
The laws of the State of one party
International law
The laws of a neutral State
Unidroit principles of international commercial contracts (2016)
A treaty providing for a legal regime of contracts, although this treaty would not be applicable if the parties did not choose said treaty as a governing law

20. Contract – Receivership

1

What happens if the co-contractor is in receivership?

The co-contractor in receivership is prohibited from paying debts due prior to the judgment opening the procedure.
The co-contractor in receivership is required to pay immediately all debts.
The co-contractor in receivership is required to pay all debts subsequent to the judgment opening the procedure.

21. International sale of goods – CISG

1

The parties to a contract for the international sale of goods have not specified the applicable law. The Vienna Convention on Contracts for the International Sale of Goods (CISG) shall apply automatically if the parties have their places of business in different contracting States that are parties to this convention.

Wrong
Right

22. What is conflict of laws?

1

Also known as private international law, conflict of laws addresses situations where a legal issue transcends the borders of a single jurisdiction
A benchmarking of laws
A competition between laws

23. International agreement – Legal regime

1

Which statements are correct?

The parties to an international agreement can exclude the application of overriding mandatory rules (imperative rules / rules of international public policy) of the State concerned by the litigation.
Contractual freedom is more important for international agreements than for internal agreements.
In any case, a judge will always apply the laws of his country that are of international public policy (mandatory laws).
The parties to an internal agreement (a contract which is not international) may freely choose the governing law (they may decide that the internal contract will be governed by a foreign law).
The parties to an international business agreement may generally choose freely the governing laws and the courts having jurisdiction.
The parties to an international business agreement may decide that their agreement will not be governed by any laws.
In order to secure their contract, the parties should always specify the governing law and the jurisdiction in case of litigation.

24. What does private international law focus on?

1

Five answers are correct.

Relationships between private parties
Determining the courts competent to judge an international dispute between states
Legal issues in cross-border transactions involving private parties
Relationships between states
Determining the law applicable to an international contract between private parties
Recognition and enforcement of foreign judgments
Sovereignty and territorial boundaries
Determining the courts competent to judge an international dispute between private parties

25. International arbitration – Definition

1

International arbitration can be defined as a private justice. The award of the arbitrators may have the same effects as the decision of a court thanks to the procedure of exequatur.

Wrong
Right

26. What is a potential disadvantage of international arbitration?

1

Flexibility and customisation
Cultural sensitivity
Costs
Secrecy

27. International agreement – Definition

1

What is the definition of an international contract?

The contract has effects in several States and/or concerns operations in several States.
The contract is governed by international law.
The contract has effects exclusively in one Sate and/or concerns operations within the same State.

28. Incoterms – Practical case

1

A company has two factories in Germany: one in Stuttgart and the other in Munich. This company wants to make its products available to the buyer at its factory in Stuttgart and not have to bear any costs or perform formalities. Which of the following clauses are appropriate?

The products are sold DDP (Delivered Duty Paid).
The products are sold Ex Works.
The products are sold FOB at the factory located in Stuttgart.
The products are sold FOB (Free on Board).
The products are sold Ex Works (Stuttgart).
The products are sold FOB (Stuttgart).
The products are sold Ex Works at the factory located in Stuttgart.

29. International agreement – Criterion

1

The main criterion for qualifying a contract as international is:

The place of residence of the parties
The language of the contract
The nationality of the parties
The place where the contract is signed
The subject matter of the agreement

30. What are conflict rules used for?

1

To try as much as possible to ensure predictability and uniformity in the determination of applicable rules, specifically in the case of uniform conflict rules provided by a treaty.
To determine which jurisdiction’s laws should apply to a legal dispute.
To define the rights, duties, and obligations of individuals and entities, since conflict rules are the rules directly applied to a case.

31. What is private international law also known as?

1

Public international law
Conflict of laws
Constitutional law

32. Which multilateral treaty provides substantive rules applying to contracts for the international sale of goods?

1

The United Nations Convention on Contracts for the International Sale of Goods (CISG)
The UNIDROIT Principles of international commercial contracts (2016)
The European Union (EU) regulations

33. What is international arbitration?

1

International justice system
A private tribunal for resolving international disputes, requiring the agreement of all the parties
State court litigation process designed for international disputes

34. EU law – Legal system

1

Which statements are correct concerning European Union (EU) law?

Conflicts of laws and jurisdiction may be quite easily solved in the European Union thanks to EU Regulations.
European Union law is a coherent legal system, similar to that of a federal State.
There exists a European legal regime of contracts: an EU Regulation providing for the legal regime applicable to contracts. This Regulation is a substantive law.
In the European Union, a Regulation determines the law applicable to contracts. This Regulation is a conflict rule, that is to say a method to determine the applicable law, and not a substantive law.
In international cases outside the European Union, where the parties did not expressly agree on the governing law and the jurisdiction, conflicts of laws and jurisdiction may be difficult to solve.
In the European Union, the legal regime of contracts is defined by the laws of each Member State.

International business law: EMBA-BS Y3 2023-24

Summary of the course – EMBA-BS Y3 Quiz