BUS 771: International Business Law

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BUS 771 INTERNATIONAL BUSINESS LAW Professor John T. Robinson, Esq. MIDTERM EXAMINATION November 11, 2013 Question 1 Q: What are the risks associated with arbitration? Why might a company prefer to settle disputes by litigation? What are the advantages of arbitration? Q: What are the risks associated with arbitration? A: The risk of arbitration exists objectively, because it is irregular behavior of arbitration, so the risks of arbitration lead to the arbitration process and eventually leads to the unfair business and interests. Also if parties do not offer evidence, they may have an unfair result. Q: Why might a company prefer to settle disputes by litigation? A: Litigation is the final step to resolve a dispute. Compared…show more content…
Kiffe claimed that the contract had been rendered commercially impracticable and that performance was excused. Do you agree? Why or why not? Was the train wreck foreseeable or unforeseeable? A: I do not agree. I think the contract should be continue. United Nation Convention on Contracts for the International Sale of Goods was ratified by United States in 1988. They made a contract with no force majeure clause. Force majeure clause is stipulated in the contract due to force majeure, such as a party is unable to perform the contract in whole or in part of its obligations, waive all or part of the responsibility. The other party shall not claim damages. Therefore, the force majeure clause is a disclaimer. The train wreck is unforeseeable. Q: b. What could Kiffe have done in negotiating the contract to protect itself from this contingency? A: Kiffe must to add the force majeure clause in their contract to protect itself from this contingency. Because of this accident is unforeseeable. Under force majeure clause, Kiffe had no liable for this contingency. Q: c. If Bende would have incurred an additional $18,815 in freight charges and miscellaneous costs had the breach not occurred, what would be its measure of damages? Is Bende entitled to lost profits? How are damages measured in a case such as…show more content…
COGSA, Section 3(1), 46 U.S.C. § 1303(1), when the ship leave the voyage, the carrier should be check the boat and make the ship seaworthy. COGSA, Section 4(1), 46 U.S.C. § 1304(1), states that neither the carrier nor the ship shall be liable for loss or damage arising or resulting from seaworthiness, unless caused by want of due diligence on the part of the carrier to make the ship seaworthy. In this case, the carrier repairs to the ship were necessary in order to make the ship seaworthy. So the ship delay was not a voluntary decision by carrier. Therefore, there is no liable for carrier for an unseaworthy

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