International Business Law
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INTERNATIONAL BUSINESS LAW
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BUSA 391 – SUMMER 2010
Prepared For: Professor Leslie Beck
By: Gabriela Popescu
ID: 260224311
June 17, 2010. Six months ago, Antiques R Us (a Canadian corporation) entered into a contract with Yankee Antiques (an American company) to purchase “a desk used by George Washington himself after his retirement from the Presidency”. The sum of $500,000 was to be paid to Yankee Antiques after 30 days of delivery of the desk.
Upon inspection of the desk however, doubts about its authenticity were raised by a third party client. Yankee Antiques has been informed of the situation and refuses to accept the return of the desk and is demanding payment. A strategy has been devised to deal with the situation at hand with two criteria in mind:
1) Yankee Antiques is a valued supplier; all attempts must be made to maintain good relations.
2) Financial strains require that the situation be prolonged as much as possible.
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STRATEGY
To begin with, it is noted that both Canada (1992) and the United States of America (1988) are party to the United Nations Convention on Contracts for the International Sale of Goods (CISG). Given that there is no mention in the contract of a specific governing law to be applied between the parties, and that both countries are Contracting States of the CISG, the Convention will apply.
Firstly, due to the important relationship held with Yankee Antiques, any strategy set out by Antiques R Us will favour conflict avoidance and dispute prevention. Secondly, the contract made with Yankee Antiques stipulates
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-------------------------------------------------
-------------------------------------------------
INTERNATIONAL BUSINESS LAW
-------------------------------------------------
BUSA 391 – SUMMER 2010
Prepared For: Professor Leslie Beck
By: Gabriela Popescu
ID: 260224311
June 17, 2010. Six months ago, Antiques R Us (a Canadian corporation) entered into a contract with Yankee Antiques (an American company) to purchase “a desk used by George Washington himself after his retirement from the Presidency”. The sum of $500,000 was to be paid to Yankee Antiques after 30 days of delivery of the desk.
Upon inspection of the desk however, doubts about its authenticity were raised by a third party client. Yankee Antiques has been informed of the situation and refuses to accept the return of the desk and is demanding payment. A strategy has been devised to deal with the situation at hand with two criteria in mind:
1) Yankee Antiques is a valued supplier; all attempts must be made to maintain good relations.
2) Financial strains require that the situation be prolonged as much as possible.
-------------------------------------------------
-------------------------------------------------
STRATEGY
To begin with, it is noted that both Canada (1992) and the United States of America (1988) are party to the United Nations Convention on Contracts for the International Sale of Goods (CISG). Given that there is no mention in the contract of a specific governing law to be applied between the parties, and that both countries are Contracting States of the CISG, the Convention will apply.
Firstly, due to the important relationship held with Yankee Antiques, any strategy set out by Antiques R Us will favour conflict avoidance and dispute prevention. Secondly, the contract made with Yankee Antiques stipulates
Cited: PACE Law School CISG Database: Canada, Pace Law School Institute of International Commercial Law, < http://www.cisg.law.pace.edu/cisg/countries/cntries-Canada.html > (Accessed June 2, 2010.) PACE Law School CISG Database: Canada, Pace Law School Institute of International Commercial Law, < http://www.cisg.law.pace.edu/cisg/countries/cntries-United.html > (Accessed June 2, 2010.) United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980, S.Treaty Document Number 98-9 (1984), UN Document Number A/CONF 97/19, 1489 UNTS 3. -------------------------------------------- [ 1 ]. PACE Law School CISG Database: Canada, Pace Law School Institute of International Commercial Law, (Accessed June 2, 2010). [ 2 ]. PACE Law School CISG Database: Canada, Pace Law School Institute of International Commercial Law, (Accessed June 2, 2010). [ 3 ]. United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980, S.Treaty Document Number 98-9 (1984), UN Document Number A/CONF 97/19, 1489 UNTS 3.