Shared Imaging, a U.S. company, agreed to purchase an MRI machine from Neuromed, a German seller. The onepage contract of sale stated that the delivery terms were "CIF New York Seaport, the buyer will arrange and pay for customs clearance as well as transport to Calumet City." In addition, under "Disclaimer," it stated, "system including all accessories and options remain the property of Neuromed till complete payment has been received." Payment was to be made when the machine was received in Calumet City. The contract also stated that it was to be governed by the laws of Germany. The MRI was loaded aboard the vessel Atlantic Carrier undamaged and in good working order. When it reached its destination of Calumet City, Illinois, it had been damaged and was in need of extensive repair, which led plaintiff to conclude that the MRI had been damaged in transit. Shared Imaging filed its claim for insurance with St. Paul Guardian, who brought an action against Neuromed for damages. Neuromed argued that the case should be dismissed because it was not liable under German law. What law should the court apply in this case? How should the court define the term CIF?