...Lecture 4 & 5 - CISG- International Contracts of Sale of Goods Contract * The issues in this case is -- what is the governing law? -- Does CISG apply? -- Is there a breach of contract by (seller) as regards to (a) Delay of delivery (b) quality if wines? -- What are the remedies available to (buyer)? 1. Is there a choice of law clause? * ( Yes – Australian is the governing law ) ( No- where there is no choice of law clause in the sale contract, courts will choose the law of nation which has the ‘ closest and most real link to the contract- The forum of the contract * Currency of payment * Place of performance of contract * Place where contract is concluded * Residency of parties to contract * Subject matter of contract * Contract concluded in Aus, using AUD$, Performance is in Australia therefore, governing law of this contract is Australia. * The governing law is determined following the steps laid down in John Kaldor v Mitchell Kotts . * Under Article 1(a) Vienna Convention 1980, both countries must be signatory of Vienna Convention. In fact, both (China and Australia) is signatory countries, there for VC will apply. * Moreover, under Article 1( b) Vienna Convention 1980, if the governing law of contract and the country is the signatory of VC, VC applied. * Furthermore, incoterm … * Offer and acceptance (Notes) * Under Article 23 of Vienna Convention, contract is concluded upon effective acceptance of...
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...Country Commerce Japan Released September 2011 The Economist Intelligence Unit 750 Third Avenue New York NY 10017 USA Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For 60 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The Economist Intelligence Unit delivers its information in four ways: through its digital portfolio, where the latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising seminars and presentations. The firm is a member of The Economist Group. London Economist Intelligence Unit 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8500 E-mail: london@eiu.com Hong Kong Economist Intelligence Unit 60/F, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com New York Economist Intelligence Unit The Economist Group 750 Third Avenue 5th Floor New York, NY 10017, US Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Geneva Economist Intelligence Unit Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com This report can be accessed electronically as...
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...Law relating to unfair trade practices Definition: An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice. Unfair practices may be categorised as under: 1. FALSE REPRESENTATION The practice of making any oral or written statement or representation which: * Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model; * Falsely suggests that the services are of a particular standard, quantity or grade; * Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods; * Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have; * Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have; * Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; * Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test; * Makes to the public a representation in the form that purports to be- * *# a warranty or guarantee of the goods or services, a promise to replace, maintain or repair the goods until it has achieved a specified result, if such...
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...Anti-Trust Law and Monopoly; Restraint of Trade Anti-trust laws encourage competition by “leveling the playing field”. These laws are intended to prevent large companies who have already established themselves from using their size and leverage to prevent competitors from entering their markets. The Sherman Act addresses unfair strategies in two different ways: Section 1 forbids restraint of trade and Section 2 forbids the misuse of monopoly power. Section 1 requires two or more persons conspiring together for a violation, so the essence of the illegal activity is “the act of joining together”. Section 2 refers to “every person”, so the conduct of a single person can result in a violation of Section 2. Any agreement between firms that results in reduced competition in the marketplace is restraint of trade. When there are very few firms in a market and a firm with an extreme amount of market power can affect the market price of its own product that firm has monopoly power. The Sherman Act applies only to restraints that have a significant impact on interstate commerce; it also extends to U.S. nationals abroad. The Clayton Act deals with specific practices not covered by the Sherman Act that reduce competition or lead to monopoly power. However, they only violate the Act if they are found to substantially lessen competition or create monopoly power. The price discrimination section 2 of the Clayton Act makes it illegal to injure buyers through unfair pricing and services...
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...Global Wine War 1. How were the French able to dominate the worldwide wine trade for centuries? The French were the first to dominate the wine trade and largely due to their time advantage the European Union was able to create laws to assimilate all wine produced from the regions of France and Italy. This absolutely helped shaped the wine industry by having standards and laws; anyone who later produced wine had the structure to produce quality based on the French laws created. Being isolated in the European regions played a huge role in its success. For many years the whole world drank French wine that was grown using strict standards. Their understanding of concentrated retail channels gave the growers an edge in the market place providing a stronghold on the market. Although the France and Italy were reinforced when they produced quantity, if the opposite was rang true France strategically would placed themselves ahead in the wine industry for centuries to come. 2. How should the Australian/ American/ French respond to their situations? Foreign markets attempting to become competitors in a longstanding European dominated market should target their foremost problem; isolation. France is an isolated market with very little variability. Australia, China, and America all have access to the French markets variety in addition to their originating market. They possess the capability to capture even more economic advantage by reducing handling stages, holding less...
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...1. What are the principal features of Outback Steakhouse’s strategy in the US? Why has the strategy been so successful? (The reason as to why the strategy is successful is discussed together with the key features below.) a. Differentiation strategy: Consistently high quality of ingredients and food; generous portions; limitation of items offered to appeal to different taste; relaxed ambience and enjoyable experience for the customers b. Customer satisfaction: restaurants are always fully staffed and employees are well trained to satisfy the needs and preferences of customers to make sure the customers have a fantastic experience. c. Alignment of interest for management and employees: management people of restaurants are given the option to purchase a 10% interest in the restaurant they manage; all the employee are eligible for the stock ownership plan and also health insurance is provided to all employees. So employees and management are motivated to work hard to fulfill every need of their customers. d. Only dinner service: less employee hours and costs required; fresh food made at dinner time, which again ensures the high quality of food. e. Location and Australian theme: lower rental costs for suburbs and residential areas compared to downtown so outback steakhouse can provide more space to create a laidback and relaxed feelings for customers as opposed to being bustle and hustle downtown. f. Rigorous selection of staff:...
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...Culture can be important, not only shaping the opportunities and risks in a country but also for the likelihood that a company can implement its market strategy. (True or False) 5. Microfinance, in its modern version, was introduced by Muhammad Yunus, a Bangladeshi economist. (True or False) 6. The fair trade system attempts to intervene directly on both market and nonmarket issues by coordinating the flow of consumer revenue to participating producers. (True or False) 7. Rule of law can override politics and political ties when doing business in emerging market countries. (True or False) 8. Emerging markets countries have imposed a variety of restrictions on foreign direct investment, foreign exchange transactions, and the repatriation of earnings. (True or False) 9. Media restrictions, ethnic and religious conflicts, political corruption, and political megalomania are some of the risks faced in emerging market countries. (True or False) 10. Emerging market countries face financial restrictions, price controls, and regulatory risks when doing business in developed countries. (True or False) 11. One concern with the fair trade...
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...are different modes through which a company can enter China; the main ones have been briefed below: Representative Office: The simplest way for a company to establish in China is through opening a representative office in China. The representative office acts as a bridge between the foreign company and its business partners in China. It gives the company a platform to conduct market research, make business contacts, manage product promotion and manage other activities for the parent company like making travelling arrangements for its company representatives. Compensation Trade: Manufacturing companies who want to outsource their production usually have a compensation trade agreement with firms in China. Usually a barter system is followed in which the parent company gives machinery to the Chinese and the Chinese produce the product for the company. This type of agreement needs compliance with the Foreign Trade Authority. Due to the rising interest of the Chinese government in attracting the foreign companies towards China, there is an array of ways a foreign company can collaborate with a Chinese company to form a joint-venture. Most widely used joint-venture modes are : Cooperative Joint Venture: Under the CJV type of collaboration both the companies enjoy convenience and the flexibility of making their own terms and regulations. This type of a collaborated firm does not need to be a legal entity. The profit and...
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...place, but rather an economic activity in which merchandise and/or services are bought and sold illegally. Also called the “underground market,” this market gets its name from the activity it conducts out of sight and often outside the sight of law enforcement. The black market or buying and selling of products and services take place often in plain sight. A black economy is a highly organized and a vast market where the regular taxation rules and norms of trade are not adhered to. The variety of goods traded in the black market is enormous and the most commonly traded black market items are weapons, drugs and alcohol at the least. Many factors can make a transaction illegal, thus qualifying it as a black market transaction. The good or service itself may be illegal, such as human trafficking, alcohol, illicit drugs, weapons, or prostitution. One prime example of an illegal market created because of an illegal product was the result of prohibition. After alcohol was outlawed in the U.S. in 1919, it was smuggled into the country and sold at speakeasies and private bars. The result was an era of organized crime and an estimated 500 million US dollars (USD) in lost tax revenues annually. When the demand is strong and gains from trade can be had, markets will develop and exchanges will occur in spite of the restrictions (pg.77). The price of certain goods sold in a black market could be lower than the legal market price. This is usually because the goods may be stolen. ...
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...Early Civilization IV: Civilizations At War (Simulation for MS 3313: US Military History) Early Civilization III is a Turn based simulation designed to teach team building and coordinating skills. This is a revamping and expansion of the original Early Civilization rules. I. Set Up The group is divided into Teams of between 6 and 8 players each. The Instructor graphically displays the six (6) beginning cities of each team by the name of each team, along with each team's Treasury and Granary. The Instructor also designates which player in each team is the Team Leader. The Team Leader's decision is final. II. The Turn 1. The Turn Sheet Students are encouraged to accomplish most of the coordination with their teammates outside of class. Then the Team Leader turns in the Turn Sheet within the first ten minutes of class. This Turn Sheet shows the Team name, lists the Team Members, and was written to be quite self-explanatory. There will usually be one Turn per week. Each Team starts the game with 6 Cities. Each City produces 1 Food and 1 Gold per Turn, and can support 1 Unit. Now Divide the Units between Offense and Defense. You may assign 6 Units to Defense and 0 to Offense, or 0 to Defense and 6 to Offense, and anything in between. It is through the Turn Sheet that you learn the result of any Disasters or attacks upon you from other Teams (Civilizations). You also use the Sheet to plan your attacks against other Civilizations (if any) and to...
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...personal wealth and the wealth and prosperity of a society or country depend. To understand why some countries are wealthier, or more peaceful, or more enterprising than others, look at the nature of their business commerce, occupations, and organizations. Look also, at the legal and ethical rules that govern how business is to be conducted in a society. The chapter has made the following main points: 1. Business has three main components, business as commerce, as an occupation, and an organization. Together these three components make up the business system. 2. The four main productive factors are land, labor, capital and enterprise. A company utilizes these resources to produce goods and services. 3. Business commerce involves the trade or barter of products (goods and services) to create profit. The forces of supply and demand determine a product’s market price. In turn, supply and demand are the result of peoples’ personal judgments about the utility, or satisfaction, they will get from supplying or buying a product. 4. A company’s business model describes the way it intends to use its productive resources to create profitable goods and services. 5. A company’s profitability is a measure of how well it has used its productive resources to create valuable goods and services as compared to other companies. 6. It is important to recognize that while all business activity is self-interested and competitive, this competition benefits society because it directs resources...
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...of the troika: what to produce, how to produce it, and for whom to produce it. This troika will serve the analysis of both international and domestic trade, which Wheelan addresses further along in the text. Why is the troika a problem? Scarcity: a condition that exists when current resources are inadequate to provide for all the people’s wants. It is in the context of scarcity that these three questions become urgent. The market is the arbiter and answerer. There are competing theories of markets (pun intended) that answer the what, how, and for whom. Charles Wheelan, in this opening chapter/salvo, discusses the reasonableness of a price system, whereby price—the neon billboard—“dictates” the movements of goods and services. Price is a summary of market conditions. It informs both producers and consumers. Without this information, estimates of cost, of expected returns, of distribution, of budget, etc. are distorted. Allocation by price is contrasted against cronyism and a first-come-first-serve breadline. In the former, inefficiency is guaranteed (or your money kept). In the latter, inefficiency is also guaranteed. Inefficiency, as it is used here, is a euphemism for deprivation. Yes, the troika is a cruel mistress when mismanaged. A price allocative system, according to Wheelan, reaches nearest Pareto Efficiency. The Law of Supply and Demand is covered with an example; in this case, the offending example is a fish—a tuna fish. How is it that the amount and availability...
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...Law, Ethics, and Corporate Governance – LEG 500 Section 001003 Adam Smith’s Wealth of Nations Reviewed Strayer University Alexandria Campus Touraj Behmand SID:1121701137 Professor Glen A. Trimper March 02, 2011 Table of Contents Abstract 3 Book I: Of the division of labour 4 Book I: Of the origin and use of money 5 Book I: Of the natural and market price of commodities 6 Book II: Of the Division of stock 7 Bibliography 10 Abstract Adam Smith was born in Kirkcaldy in 1723. He entered Glasgow University at the early age of fourteen. He studied logic, metaphysics, math and later Newtonian physics and moral philosophy under some of the leading scholars of his day. He is famous for his theory that nations achieve their wealth and function best where individuals are free to use their skills and capital in their own self-interest, at their own good judgment and risk. But isn’t that the same as entrepreneurship? In today’s capitalism society each individual is seeking prosperity by risking his or her own capital to gain self-interest. The availability of such option for individuals is what Smith calls freedom. Is that why Smith is also known as ‘the father of capitalism’? Smith taught that prices and wages will automatically reach optimal levels when such freedom is permitted. For instance, jobs that require special training will result in fewer people making that investment and, therefore, ultimate higher wages. This explains why engineers make more money than...
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...exceptional advertising tool, and many employers choose to issue workwear to their staff as a marketing strategy. Working clothing is gaining popularity worldwide, and the INDIA market, being one of the fast-evolving markets, is likely to witness a huge opportunity to increase the penetration. It is very well likely to reflect the future of the workwear market throughout the world. This research identifies major trends and challenges within the INDIA workwear market and details market size and segmentation from 2005 to 2015. This workwear and uniforms research is separated into three main market segments. First is “General Workwear,” which is further broken down into blue and white workwear. Blue workwear is made up of clothes worn by trades people and workers in heavy industry and manufacturing. Generally, these clothes include coveralls, shirts, jackets, boiler suits, aprons, warehouse coats or overalls. White workwear is made up of clothes worn by employees in the healthcare and hospitality industries. Medical uniforms and chef’s white uniforms are the examples for this type. The second market segment is the “Corporate Workwear/Imagewear,” which includes career wear and casual workwear. Career wear is made up of workwear used for office-based jobs and customer-facing airline workers. It’s also known as business clothing / business wear / corporate clothing. For men, the business wear includes shirts, trousers, jackets and blazers. For women, it ranges from skirts, trousers...
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...both in text and pictures. According to Gary (2011), between 1997 and 2000, more than 12,000 Internet-related businesses were started with more than $100 billion of investors. This shows the sheer growth in size and volume of EC is a very short span of time. Role of E-Commerce in Modern Business EC has made a huge impact on the way modern business is done. Porous geographic boundaries- EC has blurred the lines of international boundaries. Companies headquartered in USA, manufacture in China, Sell in Europe, process the transactions in India and thrive globally Internet allows business to be conducted 24/7. There are no overtime costs or other costs to be paid. Network Effects have been felt by both businesses and consumers (Gary 2011). Law of diminishing return does not apply to EC. In fact the reverse is true. As the number of participants increase, customers get more value from bigger product portfolio, additional INTERNATIONAL BARRIERS TO EC 3 competition among businesses etc. Businesses gain from a larger customer base, wider variety of tastes and hence a bigger space for different products and categories EC has helped...
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