Chapter One Introduction to International Business Law 1
Ⅰ．What is International Business Law? 1
Ⅱ．History of International Business Law 2
Ⅲ．Sources of International Business Law 3
A．National Law 3
B．International Treaties and Conventions 4
C．International Model Law 4
D．International Trade Customs and Usages 6
Ⅳ．International Organizations 7
A．Organizations Affiliated with the United Nations 7
B．Other International Organizations 9
Ⅴ．Comparison of Municipal Legal Systems 10
A．The Roman-Germanic Civil Law System 11
B．The Anglo-American Common Law System 15
Ⅵ．International Business Law and China 17
Chapter Two Forms of International Business 19
Ⅰ．Some International Trade Theories 19
A．Specialization 19
B．Absolute Advantage 20
C．Comparative Advantage 20
D．Opportunity Cost 21
Ⅱ．Exporting 22
A．Direct Exporting 22
B．Indirect Exporting 23
Ⅲ．Government Controls over Trade 24
A．Tariffs 24
B．Nontariff Barriers to Trade 24
C．Export Restrictions 25
Ⅳ．International Licensing Agreement 25
A．Technology Transfer 26
B．International Franchising 27
Chapter Three Legal System of International Business 28
Ⅰ．United Nations Convention on Contracts for the International Sale of Goods(CISG) 28
A．The Development of International Business Law 28
B．The Drafting of the CISG 29
C．Applicability of the CISG 31
D．Interpreting of the CISG 33
Case 3—1 Raffles v.Wichelhaus and Another 36
Ⅱ．UNIDROIT Principles of International Commercial Contracts(PICC) 39
A．Origin and Preparation of the UNIDROIT PICC 39
B．Structure and Scope of the UNIDROIT PICC 42
C．General Principles of the UNIDROIT PICC 43
D．The purposes of the UNIDROIT PICC 49
E．Comparison of the UNIDROIT PICC and CISG 51
Ⅲ．International Rules for the Interpretation of Trade Terms 54
A．Concept and Role of Trade Terms 54
B．Contents of Incoterms 2000 55
C．FOB(free on board)(port of shipment) 57
D．CIF(cost,insurance and freight)(port of destination) 60
E．Modification of Trade Terms 63
Case 3—2 Kumar Corporation v.Nopal Lines,Ltd 64
Chapter Four Contract Law for the International Sale of Goods 68
Ⅰ．Definition and Form of Contract 68
A．Definition of Contract 68
B．Form of Contract 70
Ⅱ．Validity and Formation of International Sale of Contracts 71
A．Invitation Offer 72
B．The Offer 72
C．The Acceptance 75
D．Battle of the Forms 76
Case 4—1 Filanto v.Chilewich International Corporation 80
E．Consideration in Common Law 82
Case 4—2 Hamer v.Sidway 83
Case 4—3 Fiege v.Boehm 89
Ⅲ．Misrepresentation 90
A．Fraudulent Misrepresentation 91
B．Innocent Misrepresentation 91
C．Negligent(innocent)Misrepresentation 92
Ⅳ．Mistakes 92
A．Common Law 92
B．Civil Law 94
C．The UNIDROIT PICC 94
D．China Contract Law 94
Ⅴ．Fraud 95
A．Common Law 96
Case 4—4 Stambovsky v.Ackley 97
B．Civil Law 98
C．The UNIDROIT PICC 98
D．China Contract Law 98
Ⅵ．Duress 98
A．Common Law 98
B．Civil Law 100
C．The UNIDROIT PICC 100
D．China Contract Law 100
Ⅶ．Undue Influence and Unconscionable(unjust)Conduct 101
A．Common Law 101
Case 4—5 Commercial Bank of Australia Ltd.,v.Amadio 103
B．Civil Law 104
C．The UNIDROIT PICC 104
D．China Contract Law 105
Chapter Five Contract Law for the International Sale of Goods(continued) 108
Ⅰ．Remedies for Breach of Contract 108
A．General Principles of Remedies 108
Case 5—1 Prutch v.Ford Motor Company 111
B．Buyer's Remedies 112
C．Seller's Remedies 117
D．Remedies Available to Both Buyers and Sellers 117
Case 5—2 Delchi Carrier,SpA v.Rotorex Corporation 120
Ⅱ．Anticipatory Breach of Contract and Exceptio non Adirnpleti Contractus in Civil Law 123
A．Anticipatory Breach in Common Law 123
B．Exceptio non Adimpleti Contractus in Civil Law 123
Ⅲ．Liquidated Damages 125
A．Common Law 125
B．Civil Law 127
C．The UNIDROIT PICC 127
D．China Contract Law 128
Ⅳ．Obligations of the Seller and the Buyer 128
A．Seller's Obligations 128
B．Buyer's Obligations 134
Case 5—3 The Natural Gas Case 135
Ⅴ．Passing of Risk 138
A．Common Law 139
B．The CISG 140
C．China Contract Law 142
Ⅵ．Passing of Property 143
A．Common Law 143
B．The CISG 144
C．China Contract Law 144
Ⅶ．Excuses for Non-performance 145
A．Common Law 145
Case 5—4 Transatlantic Financing Corporation v.United States 149
B．The UNIDROIT PICC 150
C．The CISG 151
D．Force Majeure Clauses 151
Chapter Six Carriage of Goods by Sea and Marine Cargo Insurance 155
Ⅰ．Charterparties 155
A．Voyage Charterparties 155
B．Time Charterparties 156
C．Charterparties by Demise 156
Ⅱ．Bills of Lading 157
A．Laws of Bills of Lading 157
B．Characteristics of the Bills of Lading 159
C．Transfer of Property under A Bill of Lading 161
D．Carrier's Duties under A Bill of Lading 162
E．Carrier's Immunities 165
F．Delayed Bills of Lading 167
G．Frauds on Bills of Lading 168
Ⅲ．Marine Cargo Insurance 169
A．Marine Insurance Policies and Certificates 170
B．Perils and Losses 171
C．Insurance Cover 172
Chapter Seven Finance of International Trade 175
Ⅰ．The Bill of Exchange 175
A．Origin of Bills of Exchange 175
B．The Law Governing Bills of Exchange 176
C．Types of Bills of Exchange 177
D．General Requirements and Rights of the Holder in Due Course 178
E．Common Procedures in Handling Bills of Exchange 181
Ⅱ．Collection of Documentary Bills Through Banks 183
A．Types of Collection 183
B．Advantages of Collection 184
Ⅲ．Letters of Credit(L/C) 184
A．Law Applicable to Letters of Credit 185
B．Types of Letters of Credit 186
C．The Stages of Arranging and Advising A Letter of Credit 188
D．Independence Principles and Rule of Strict Compliance 189
E．Fraud Exception in Letters of Credit Transaction 190
Case 7—1 Sztejn v.Henry Schroeder Banking Corp 192
Ⅳ．International Factoring 195
A．Definition and Historical Development 195
B．Obligations of the Parties 196
C．Advantages of International Factoring for Chinese Merchants 197
Chapter Eight Partnership Law 201
Ⅰ．Definition and Creation of a Partnership 201
A．Definition 201
B．Creation of a Partnership 202
Ⅱ．Property of a Partnership 205
A．Scope of Partnership Property 205
B．Ownership and Possession 205
C．Creditors of Partners 205
Ⅲ．Partners' Rights and Duties 206
A．Right to Compensation 206
B．Duty of Loyalty and Good Faith 206
C．Duty of Care in Partnership Business 207
D．Enforcement of Partnership Rights and Liabilities 208
Ⅳ．Dissolution of the Partnership 208
A．Nonwrongful Dissolution 208
B．Wrongful Dissolution 209
C．Automatic Dissolution 209
D．Dissolution by Court Order 209
Ⅴ．Winding Up 210
A．Powers during Winding up 210
B．Duties of Partners during Winding up 211
C．Compensation for Winding up 211
Chapter Nine The Law of Corporations 213
Ⅰ．History and Nature of Corporations 213
A．History of Corporations 213
B．The Principal Characteristics of the Corporation 216
C．Promoters 217
D．"Piercing the Corporate Veil"and Related Problems 219
Ⅱ．Sources of Corporate Financing 220
A．Common Stock 220
B．Debt Securities 221
Ⅲ．Shareholders' Rights and Liabilities 222
A．Shareholders' Meetings 222
B．Shareholders' Election of Directors 223
C．Fundamental Corporate Changes 223
D．Shareholders' Inspection and Information Rights 224
E．Distribution to Shareholders 224
F．Shareholders' Lawsuits 226
G．Shareholders' Liabilities 227
Ⅳ．Management of Corporations 228
A．The Board of Directors 228
B．Officers of the Corporation 230
C．Directors' and Officer's Duties to the Corporation 231
Ⅴ．Termination of Corporations 233
A．Dissolution by Agreement 233
B．Involuntary Dissolution 234
Chapter Ten Law of Foreign Investment Enterprises of China 236
Ⅰ．China's Fundamental Policies for Encouraging Foreign Investments 237
A．Sources of Foreign Investment Law of China 237
B．More Sectors Opened 238
C．Categories of Investment Projects 239
D．Government Guarantees 241
Ⅱ．Law of the People's Republic of China on Chinese Foreign Equity Joint Ventures 244
A．Definition and Legal Characteristics 245
B．Establishment and Registration 245
C．Sources of Investment 246
D．Administrative Management 247
E．Liquidation 248
Ⅲ．Law of the People's Republic of China on Chinese Foreign Contractual Joint Ventures 249
A．Definition and Legal Characteristics 249
B．Establishment of China Contractual Joint Ventures 250
C．Administrative Management 250
D．Distribution of Earnings and Recovery of Investments 251
Ⅳ．Law of the People's Republic of China on Foreign Capital Enterprises 251
A．Establishment of China Foreign Capital Enterprises 252
B．Business Form and Registered Capital 253
C．Methods of Investment Contribution 253
Chapter Eleven Intellectual Property Right Law 255
Ⅰ．The Creation of Intellectual Property Rights 255
A．Copyrights 255
B．Patents 258
C．Trademarks 261
D．Know-how 264
Ⅱ．International Provisions 264
A．Comprehensive Agreements 265
B．Artistic Property Agreements 265
C．Industrial Property Agreements 267
Ⅲ．International Licensing Agreements 272
A．Characteristics of International Licensing Agreements 273
B．Major Issues in International Licensing Agreements 273
Chapter Twelve GATT and WTO Law 279
Ⅰ．The Founding of GATT 279
A．Trade Barriers 279
B．Trade Liberalization Through Cooperation 280
C．Scope and Coverage of GATT 1947 and GATT 1994 281
Ⅱ．Major Principles of GATT 1994 282
A．Multilateral Trade Negotiations 282
B．Most-favored-nation Treatment 283
C．National Treatment 284
D．Tariff-based Import Restriction 285
Ⅲ．The World Trade Organization(WTO) 285
A．The WTO and the Economic Globalization 286
B．Legal Structure of the WTO 287
C．WTO Antidumping Agreement 287
Ⅳ．WTO Dispute Settlement Procedures 292
A．Deficiencies in the GATT 1947 Dispute Process 293
B．WTO Dispute Settlement Procedures 293
Chapter Thirteen The Law of Agency 297
Ⅰ．Creation of Agency 297
A．Formation 297
B．Capacity 298
C．Nondelegable Duties 298
Ⅱ．Duties of Agent and Principal 298
A．Duties of Agent to Principal 298
B．Duties of Principal to Agent 301
Case 13—1 Willis v.Champlain Cable Corp 302
Ⅲ．Termination of an Agency 304
A．Act of the Parties 304
B．Operation of Law 305
C．Post-Termination Relationship 306
Ⅳ．Third Party Relations of the Principal and the Agent 306
A．Contract Liability of the Principal 306
B．Contract Liability of the Agent 309
Chapter Fourteen International Commercial Dispute Settlement 314
Ⅰ．Settlement of Disputes through Municipal Courts 314
A．Jurisdiction and Venue 314
Case 14—1 In Re Union Carbide Corporation Gas Plant Disaster at Bhopal 317
B．Enforcement of Foreign Judgment 321
Ⅱ．International Tribunals 323
A．International Court of Justice 323
B．International Center for the Settlement of Investment Disputes 324
Ⅲ．Alternative Dispute Resolution 325
A．Negotiation 325
B．Mediation 325
C．Mini-trial 326
Ⅳ．Commercial Arbitration 327
A．Definition and Special Features 328
B．The Applicable Procedure Law 329
C．The Applicable Substantive Law 331
D．Arbitration Agreement and Arbitration Clauses 336
E．Recognition and Enforcement of Awards 340
F．Enforcement of Foreign Arbitral Awards in the People's Republic of China 343
Bibliography 346