1. What source(s) of international law(s) would gener-ally govern this international business relationship?

2. When CCC asks the court to dismiss the case due to the ICC clause, Telefonica claims that the clause is invalid because it will have to travel to Europe to resolve the dispute and that is too burdensome. How will the federal court rule, and what case have you studied in this chapter that supports your answer?

3. Assume further that the CCC-Telefonica agreement provides that all shipments are “FOB Port of Rio de Janeiro, Brazil.” During one shipment, a batch of 1,000 units is accidentally destroyed when being loaded on the freighter in Miami. Under the CISG, who bears the risk of this loss? When did title pass?

4. Assume that an executive at Telefonica arranges a golf outing with a politician in Argentina on behalf of the distribution manager of CCC. The Telefonica executive explains that it is customary in Argentina for business owners to entertain local politicians and that it is a necessary part of securing appropri-ate licenses for the CCC-Telefonica distribution rela-tionship in Argentina. One day after the golf outing, the Telefonica executive sends a bill to CCC for the golf expenses, including equipment, food, and drinks ordered by the group. If CCC pays the bill, will the company potentially violate any U.S. laws? If so, does the law apply to these circumstances? Will CCC be at a competitive disadvantage if it follows the law? 

5. Suppose that CCC refuses to pay the bill and that the Argentinean government prohibits CCC from exporting any products to Argentina. CCC loses a significant portion of its investment with Telefonica as a result of the ban. Does CCC have recourse against the Argentinean government in U.S. courts? Why or why not? What legal doctrine controls this question? Could this be an exception? 

Cold Call Company (CCC) is a cellular phone manufacturer and distributor based in Miami, Florida. The firm has a significant market share in the southeastern United States and began to expand into South America as a natural supplement to its existing market. CCC entered into a written distribution agreement with Telefonica, a Brazilian-based provider of cell phone service and retailer of cell phone units with stores throughout Latin America. Telefonica agreed to buy 25,000 units over 12 months at US$5 per unit. The agreement also contained a provision whereby the parties agreed to ICC dispute resolution in the event of a dispute arising out of the distribution agreement. After several months, a dispute developed, and Telefonica filed suit against CCC in a federal district court in Miami.