Quiz 23: International Law in a Global Economy
U.C.C.(Uniform Commecial Code) In general, the rule is that whenever a conflict arises between a common law contract rule and the state statutory law based on the U.C.C., the U.C.C. controls. The provisions under the U.C.C. were created in order to protect parties to a contract that are limited in resources, information and bargaining power from becoming victims of unconscionable contract terms in the sale and lease of goods. Goods and services combined was created to provide warranties to goods that are provided by a service in order to protect consumers. Open price term helps parties to a contract by setting guidelines for determining a reasonable price at the time of delivery, or if the price is determined by either the buyer or the seller, the price is to be fixed in good faith. Open payment term helps parties to a contract have not agreed on a payment term, payment is due at the time and place at which the buyer is to receive the goods. If the seller demands payment in cash, the buyer must be given a reasonable time to obtain it. This is important when considering the definite and final time for performance. Open delivery term helps parties determine the delivery of goods when not specifically stated in the contract. Both parties are protected by providing guidelines for a reasonable time for performance. Duration of an ongoing contract assists contracting parties in creating a reasonable termination without injury to either party. Options and cooperation with regard to performance gives sellers the right to make shipping arrangements in good faith and the buyer to specify non-stated assortment varieties. Acceptance in contracts is based on what a reasonable person would expect according to the terms presented in the contracts. It further protects against counteroffers as being accepted and establishes legally enforceable contracts. Nonconforming goods clarification provides sellers and buyers with a remedy that both constitutes an acceptance and a breach of contract that may be acceptable depending upon the remedy. That saves parties to a contract from pursuing legal remedies through the court system of the nonconforming goods satisfy the buyer. Rules for non-merchants are more stringent than with contracts between merchants because non-merchants are not in the bargaining position that merchants enjoy. New consideration is not required to bind parties in a contract modification. This provision provides a way to keep the integrity of the contract with an equitable modification that both parties can agree upon. Parol evidence is a document under the Statute of Frauds that shows the nature and terms of a contract between parties. Contracts that must be in writing are required in order to maintain the integrity of the details so that both parties can be satisfied with the outcome and there are no surprises. Void and voidable titles allow for good title to pass to good faith purchasers under certain circumstances. This exception provides consumers the confidence with which they may make purchases with the knowledge that the goods will not be forfeited after payment. Defining when title passes ensures when risk is assumed. This provides parties with the knowledge of when to secure insurance if necessary before the completion of a contract. Breach of contract outlines what constitutes a breach and the remedies so that neither party assumes a surprise burden if the contract is litigated, further protecting the art of the deal. Specifying what constitutes performance further clears the understanding of when a contract has been executed and when a claim may be filed to include quality of goods and acceptable remedies for nonconforming goods. Further clarification of the duties and responsibilities of the seller and the buyer serve to protect both parties from risk and injury resulting from ambiguous terms. Title, risk and insurable interests establish the right of ownership and thereby the obligations and remedies of the parties to a sales contract. In short, the U.C.C. provisions are in essence in place to protect the contract and parties thereto from seeking litigation for remedial issues that may be settled amicably between the parties. The goal is to simplify and to streamline commercial transactions. Simplification allows parties to form sales and lease contracts without observing the same degree of formality used in forming other types of contracts.
Finding the ramifications for the defendants of the ruling in given case: • When the case was initially dismissed, the defendants did not have to worry about a suit. • In fact, when the district court said there was not subject matter jurisdiction, it meant that the case could not be heard at all. • However, now that the appeals court has ruled that there is subject matter jurisdiction, the defendants must prepare a defense against the serious allegation of a human rights violation.
Finding the problems for U.S. businesspersons due to France law: • If an American wishes to do business in France, they should probably expand their budget. First, these businesspeople have the option to form contracts in France. • If they choose to do so, then they must follow the rules of that country. • These businesspersons may get problems like, language problem and conversion of their business transactions. • If a suit is brought against an American businessperson for violation of a regulation in France and he is found to be violation of the regulation, the United States will most likely enforce the judgment as long as the decision is in line with U.S. law and policy.