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business ethics
International Business Law And The Legal Environment 3rd Edition Larry A DiMatteo - Solutions
E-Data Corporation (“E-Data”) is a Utah corporation with a business office in Connecticut. West Stock, a Washington corporation with its principal place of business in Seattle, Washington, licenses stock photography to commercial users. It has no offices in Connecticut, it owns no property and
The defendant in a recent case had put up a web site as a promotion for its upcoming Internet service.The service consisted of assigning users an electronic mailbox and then forwarding advertisements for products and services that matched the users’interests to those electronic mailboxes. The
Marobie released copyrighted clip art for use by the fire service industry. The National Association of Fire Equipment Distributors (NAFED) had a web page on which it placed Marobie’s clip art so that any web user could download it. Marobie sued NAFED and Northwest, the provider of the host
Review the website of the Asia-Pacific Economic Cooperation (APEC) to see the many different working groups, areas, and projects that it undertakes:http://www.apec.org.
Review the U.S. Model Bilateral Investment Treaty available at http://www.state.gov/documents/organization/188371.pdf.
Explain the difference between:a area development agreement b direct franchising c master franchise agreement d subfranchisee
What types of provisions should a franchisor negotiate to protect itself?
What factor should a franchisor consider in determining who, where, and how it should enter a franchise agreement?
What benefits does international franchising provide the franchisor and the franchisee?
How is international franchising different from purely domestic franchising? How is franchising different from licensing?
What are the key issues in establishing and operating an international joint venture?
What is the importance of bilateral investment treaties (BITs) to a party considering FDI?
What legal standards must a host country meet in expropriating (nationalizing) a foreign investment?
In what ways can a company mitigate the risks of FDI?
Have foreign regulations of FDI become more or less restrictive over the last few decades? Why?
What are the differences between the following:a Greenfield investment b merger and acquisition c joint ventures What are the advantages of each of these forms of foreign direct investment? What are the unique concerns and issues for each form?
What role do international institutions play in the protection of FDI?
In what respects is foreign direct investment riskier than the sale of goods (exporting)? What are the different means of minimizing those risks?
Why might a company consider investing abroad?
You own publishing rights to a catalog of popular“do-it-yourself” home and electronic repair manuals. Distributors located in Germany, Italy, and India have approached you. What are your concerns regarding the licensing of the copyrights to these manuals? Develop a due diligence checklist to be
Review the web site of the U.S. Copyright Office to determine the requirements for registering a copyright license: http://www.lcweb.loc.gov.
Review the web site of The Cyberspace Law Institute for information on how the Internet interrelates with intellectual property law: http://www.cli.org.
License Writing and Review Problem: You represent an American manufacturing company whose products are based upon an assortment of patents, copyrights, trademarks, trade secrets, and know-how. The company has a very popular line of electronic products that has only been marketed and sold in the
Your company, a technology company based in the United States, holds a number of patents on Internet-related business applications. It is negotiating a licensing agreement with a major French innovator of Internet technologies. Your company’s standard grant-back clause provides a nonreciprocal
The premier German manufacturer of compact discs decides to export its discs to markets in Eastern Europe. Because of the economic realities of these emerging-economy countries, the manufacturer is forced to sell the discs at a lower price than it sells them in the German market in order to obtain
Your company produces a quality component product that is used in the manufacture of highscale stereo equipment. The component is manufactured through the use of special software developed by your company. The component and associated software are covered under a number of U.S. patents and
“Green River” is the trademark under which Sethness-Greenleaf, Inc., sold to bottlers a soft drink according to a formula that was Sethness-Greenleaf’s trade secret. Sethness-Greenleaf sold the Green River business, including the trademark and the trade secret, to Green River Corp. The
McCoy hired Mitsuboshi to make and supply shrimp knives covered by McCoy’s patent and trademarks. When Mitsuboshi produced the knives, McCoy refused to pay for them. Mitsuboshi resold the knives to Admiral Craft. McCoy sued Mitsuboshi Cutlery, Inc. for patent and trademark infringement in
Review the web sites of the U.S. Patent and Trademark Office (www.uspto.gov), European Patent Office (www.epo.org), and Japanese Patent Office (www.jpo.go.jp). Also through these web sites, research the work of the Trilateral Office. The U.S. PTO, EPO, and JPO established the Trilateral Office to
On May 5, 2000, a Dispute Settlement Panel of the World Trade Organization issued its report in the U.S.–Canada dispute over Canada’s term of patent protection. The Panel essentially agreed with the U.S. that Canada’s 17-year patent protection fails to comply with the WTO Agreement on
Review and compare the texts of the Uniform Trade Secrets Act (www.uniformlaws.org/shared/docs/trade%20secrets/utsa_final_85.pdf)and the Economic Espionage Act of 1996 (www.tscm.com). Scroll down to “U.S. Laws Regarding Electronic Surveillance.” What types of activities do they prohibit? What
Review the 2015 Special 301 Report of the U.S.Trade Representative at www.ustr.gov. What countries are on the Representative’s watch lists?Why are these countries on the lists? Be sure to scroll down to the sections titled “Priority Watch List” and “Watch List.”
Research the activities of the World International Property Organization by reviewing its web site at www.wipo.org.
Search the U.S. Copyright Office web site and report the requirements for filing a copyright registration: www.loc.gov/copyright.
L’Oreal applied for a patent on a sun protection factor (SPF) product in Luxembourg on April 13, 1987. It applied in the U.S. on April 12, 1988.Estee Lauder applied for a patent in the U.S. on the same SPF on December 21, 1987. Assuming that the Paris Convention and Patent Cooperation Treaty
Justice Yates stated more than 200 years ago that:“Ideas are free. But while the author confines them to his study, they are like birds in a cage, which none but he can have a right to let fly: for, till he thinks proper to emancipate them, they are under his dominion.” Millar v. Taylor, 4
Conflicts of law rules play an important role in the application of national intellectual property laws.Courts determine which national lawis to be applied in the case by applying conflicts of law rules. They are applied when the parties are from different countries or the activities at issue
What are the basic differences between the U.S.patent system and the patent systems found in other countries?
What can a U.S. licensor of intellectual property rights do to prevent a gray market problem?
Match the left column with the right column (see answers on the next page):5 Match the contract clause on the left with the definition on the right (see answers on the next page): A Apparent Authority B Trade Secret C Finding a Distributor D Territorial Restrictions E Evergreen Law F Just-in-Time
Explain and give an example of the difference between a formalistic and a contextual interpretation of a contract term.
What are evergreen laws, who do they protect, and what type of protections do they provide?
What are the different characteristics of a foreign representative, consultant, commercial agent, and a distributor? What is the importance of independent contractor status in all these relationships from the perspective of the manufacturer-exporter?
Research some of the following industry organization web sites for information on exporting services in those specific sectors. Management and Public Relations: Public Relations Society of America at http://www.prsa.org; Society for Human Resource Management at http://www.shrm.org. Insurance
The most recognized authority on international labor standards is the International Labour Organization (ILO). Review the ILO web site at http://www.ilo.org and become familiar with its standards and its current activities.
Subcontractors. The Company may from time to time request that the Consultant arrange for the services of third parties. The Company will pay all costs to the Consultant but in no event shall the Consultant employ others without the prior authorization of the Company.IT IS HEREBY AGREED THIS 5th
Confidential Information. The Consultant agrees that any information received from the Company which concerns the personal, financial, or other affairs of the Company will be treated in full confidence and will not be disclosed to any other persons or companies.
Independent Contractor. The Company and Consultant agree that the Consultant is being hired as an independent contractor.Accordingly, the Consultant shall be responsible for payment of all taxes arising out of the Consultant’s activities, including but not limited to income tax, social security
Compensation. The Consultant will be paid at the rate of $125 per hour of work performed.However, the Consultant will be paid a minimum of $15,000 per month regardless of the time actually spent. The Consultant will send an itemized statement, on a monthly basis, setting forth the services and time
Place of Services. The Consultant will perform services at a location ofConsultant’s discretion.
Time Devoted by Consultant. It is anticipated that the Consultant will spend approximately 35 hours per week in fulfilling his obligations under this agreement. The amount of time may vary from week to week. However, the Consultant will devote a minimum of 100 hours per month to its duties in
Term. The agreement shall begin on June 1, 2001, and terminate on May 30, 2004. Either party may cancel this agreement on thirty-day notice to the other party in writing, by certified mail or personal delivery.
Services. The Company employs the Consultant to perform certain consulting services. The Consultant will consult with the officers and employees of the Company concerning matters relating to the selling, marketing, and advertising of Company’s products in the country of France.
The U.S. Eximbank is America’s largest export financing agency. Explore www.exim.gov to see how its programs benefit U.S. exporters.1 Review the following consulting agreement. What are the purposes of the different clauses? Would these clauses be enforceable in the United States and in the
Take a self-guided tour from a Canadian perspective of an international trade transaction at www.royalbank.com/trade.
Research the availability and requirements of the Small Business Administration’s Trade Finance Program.
Test your knowledge of trade finance terminology.Match the term with its definition (see answers on the next page).
A letter of credit is issued with the following terms and conditions: “(1) The beneficiary partymust present a full set of clean-on-board bills of lading evidencing shipment from Port A to Port B and (2)documents must arrive at the offices of the issuing bank before arrival of the ship at Port
The terms and conditions of a letter of credit state that the beneficiary party (seller) is to provide a certificate of origin listing the goods as originating from “NAFTA Countries.” The certificate of origin did state “NAFTA Countries,” but the commercial invoice stated only
A company engaging in the manufacture and sale of telecommunications equipment entered into an agreement with the “Imperial Government of Carpathia” to install and maintain certain telecommunications equipment. As a condition of the contract and to secure the advance payment, the company was
Should the parties to a documentary credit include a dispute resolution clause in their letters of credit or allow disputes to be resolved through litigation?Are there any alternatives to arbitration that could be used to minimize the time and cost of litigation or arbitration?
One topic of great interest at a recent global banking conference was dealing with letters of credit in China. As those who use Chinese letters of credit know, the Chinese will reject a letter of credit on the minutest of discrepancies. Several participants now report that in certain instances the
Check the services and types of e-documents provided through the Bolero Project at www.bolero.net.
Select a country and research the documentary requirements for the importation of goods into that country. Such information can be obtained from the following sources: (1) U.S. Department of Commerce, (2) foreign government web sites, especially consulate sites, (3) Bureau of National Affairs
You are unsure of what trade term to use in negotiating an export contract. You are willing to be responsible for the loading and shipping costs to the port of destination, along with the cost of unloading, but do not want to be responsible for import and customs clearance. What INCOTERM would best
Write out the words for the INCOTERMS acronyms:EXW ______________________________ FCA ______________________________ FOB ______________________________ FAS ______________________________ CIF ______________________________ CFR ______________________________ CIP ______________________________ CPT
What right of inspection does a buyer have under the CIF INCOTERMS?
What INCOTERMS are only used for ocean transport?
What are the main differences between the FOB, CIF, and DDP INCOTERMS?
What is the legal status of INCOTERMS? Is it a law?
A foreign buyer negotiates with a foreign exporter for goods to be shipped out of a foreign port. To protect itself from fraud in the transaction, the buyer requires that the exporter provide an inspection certificate as one of the documents to be presented for payment. When the documents were
An export contract required that the seller provide:“a full set of three original clean on board bills of lading.” Instead, the seller presented a full set of three clean on-board bills of lading but only one was marked “Original.” The other two bills of lading were marked “Duplicate”
You are a manufacturer of precision industrial tools and parts based in Ithaca, New York. You have been contacted by a manufacturer in Budapest, Hungary, to begin supplying it with an assortment of your products. Using INCOTERMS, prepare a pro forma invoice with three different shipping options.
You are the purchasing agent for a U.S. luggage manufacturer. You are asked to outsource some of the components, including steel strips used in the fabrication of the structural frames of the larger pieces of luggage. Your company’s manufacturing plant is located in Peoria, Illinois. Your
A buyer and seller entered into a contract for the sale of widgets, “CIF Omaha.” A further provision stated that delivery was to be at a “factory in Omaha, Tulsa, or Kansas City, to be designated by the buyer.” The widgets were lost in transit.The buyer refused to pay on the presentation of
Your company has just entered into an export contract with a company in Chile. It is your job to arrange transport from the Port of Miami to Santiago, Chile. Check the shipping schedules to determine the best and fastest transit routes.
Research the status of the BOLERO Project in the development of electronic documentation relating to the shipment of goods at www.bolero.net.
Review the web site of the International Maritime Bureau: www.iccwbo.org/ccs/menu_imb_bureau.asp. What types of services does this organization provide to international shippers?
The plaintiffs are Dutch importers of commodities that included industrial leather gloves. Four shipments of gloves were made in 1982 and 1983. The insurance contract contained the following clause:“This insurance shall in no case be deemed to extend to cover loss damage or expense proximately
Plaintiff Tseng boarded an international flight from New York to Tel Aviv. Before being allowed to board, she was subjected to an intrusive security search. Tseng sued the airline in state court in New York for the torts of assault and false imprisonment.TheWarsaw Convention does not address such
During a time of hostilities, a shipowner hires a tug to tow the ship to lessen the danger from enemy submarines. Can the shipowner make a general average claim by arguing that the towing costs are extraordinary expenses incurred for the benefit of the ship and its cargo?
Goods are jettisoned from a ship as a general average act. You file a claim against your marine insurance policy and receive full payment. Does the marine insurance company have a claim for general average against the shipowner and the other cargo owners?
A shipper obtains a cargo insurance policy on 400 sealed crates of “Grade A” industrial grinding wheels. In fact, the grinding wheels were contained in 400 burlap sacks and were of secondhand stock. Does such a variation in the description of the insured goods jeopardize the shipper’s
An insured takes out a marine insurance policy on$50,000 worth of goods but fails to disclose his previous claims history. In fact, the insured had filed claims for loss on eight previous policies covering transport of goods. Can the insurance company avoidmaking payment for loss to the insured
A shipper obtains a marine (cargo) insurance policy for $25,000 on goods that had a real or market value of $8,000. If the goods are lost at sea, is the insurance company liable for $25,000, $8,000, or nothing?
What are the functions of freight forwarders and what is the relationship between freight forwarders and the exporters?
What is the purpose of international carriage conventions?Why are they needed? Why are they important? In what ways do they favor the shipping companies or common carriers? What benefits do the international carriage conventions provide to the shippers?
Select a country and research its sales law using the Cornell Law School Legal Information Institute at http://www.law.cornell.edu. Click on “Get the Law” at the top; then click “Law by Jurisdiction”on the drop down menu and then click on “World Law” on the second drop down menu.
Review how Islamic Law deals with commercial transactions. See http://www.oxfordislamicstudies.com/article/opr/t236/e0156 and http://www.islamic-finance.com/item13_f.htm.
The European Union has a directive pertaining to warranties in consumer transactions. Compare the selected provisions of Directive 99/44/EC with the warranty provisions found in the UCC and CISG.Note that the European word for “warranty” is“guarantee.”
A business manager corresponds with numerous contacts in the international business world. She sends letters and faxes to agents, customers, suppliers, distributors, lenders, and many others. Most U.S. businesspersons have been educated to believe that they would expose their companies to liability
a As a seller and exporter of goods you are negotiating a long-term (three-year) installment contract. Because of the length of the contract, an open price term needs to be negotiated.Write a clause that anticipates the risks involved in entering a long-term supply contract.What cost factors should
Section 2-205 of the UCC provides an exception to the rule that an offeror is the “master of the offer” or that he has a right to revoke the offer at any time. It provides that “an offer given by a merchant in a signed writing which gives assurance that it will be held open is not revocable,
How do courts determine which national laws apply in a given case?
In many transactions involving technology transfer, the contract provides for the sale of both goods and services. Does the CISG apply to such contracts?
ComparetheUCC’s treatment of anticipatory repudiation and adequate assurance in 2-609 and 2-610 with the CISG’s treatment in Articles 71–73. Can you find any significant differences?
Review the subjects covered in Principles of European Contract Law Part III, which were added in 2002 (Chapters 10–17) at www.jus.uio.no/lm/eu.contract.principles.parts.1.to.3.2002.
Readthe“overview” of the Council of Europe, along with the different subject areas within the organization, and associated links: www.coe.int/en/web/portal/home.
Review the European Commission’s home page for Consumer Affairs at http://europa.eu/pol/cons/index_en.htm. What types of consumer protection initiatives has the EU undertaken? What areas in the subject index would be a concern for an international businessperson?
Review Schedule 2 (“Consumer contract terms which may be regarded as unfair”) of the Consumer Rights Act of 2015 to see which terms are considered unfair and enforceable when placed in consumer contracts. You can find Schedule 2 at http://www.legislation.gov.uk/ukpga/2015/15/schedule/2/enacted.
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