- What is the Foreign Corrupt Practices Act (FCPA)?
The Foreign Corrupt Practices Act (FCPA) is a U.S. law that makes it illegal for a U.S. person (citizen or company) or any person who acts on behalf of a U.S. person to offer, to pay, to promise to pay or to authorize another person to pay money or of anything of value to a foreign government official for the purpose of obtaining or retaining business.
- What is the Anti-boycott Act?
The Anti-boycott Act is a U.S. law, which makes it unlawful for a U.S. person (citizen or company) to participate in other countries' boycotts of a country that is not subject to a U.S.-sponsored boycott. The most significant boycott involved is the Arab League's boycott of Israel.
- What is the U.N. Convention on Contracts for the International Sale of Goods (CISG)?
The CISG is an international set of rules designed to provide clarity to most international sales transactions involving the sale of goods. The CISG went into effect on January 1, 1988, with the United States as a party. Most Western countries are now signatories to the CISG.
- What is the significance of the U.N. Convention on Contracts for the International Sale of Goods (CISG)?
The CISG can be both a discretionary and mandatory set of rules. It is discretionary when both parties agree to be bound by its rules; it has mandatory application when the parties do not choose to use it but become bound to it by virtue of its automatic application. As a result of the mandatory application of the CISG, most international sale of goods contracts with parties in western countries will be subject to the CISG, unless specifically excluded in accordance with the CISG's terms.
- What methods of dispute resolution are commonly used to resolve international business disputes?
Litigation, arbitration and mediation.
- Which dispute resolution method is currently the preferred method of dispute resolution in international business transactions?
Arbitration.
- What is arbitration?
Arbitration is a dispute resolution method whereby a panel of one or three neutral third parties (known as arbiters or arbitrators): (a) presides over a hearing during which the disputants present their cases; and (b) renders a ruling, which is binding on the parties.
- What is mediation?
Mediation is a dispute resolution method whereby a neutral third party (a mediator) assists the disputants in negotiating a settlement, which is not binding on the parties.
- What is the New York Convention?
The New York Convention is a common term of reference for the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which provides for signatory countries a set of uniform rules for the recognition and enforcement of arbitral awards from foreign jurisdictions.
- Is the U.S. a signatory to any treaties or conventions on the enforcement of court awards?
No.
- Which procedural rules are most commonly used in the arbitration of international business disputes?
The procedural rules of the International Chamber of Commerce are currently the most commonly used procedural rules in the arbitration of international business disputes, but the International Commercial Rules of the American Arbitration Association are gaining in prominence.
- What is Comity of Nations?
Comity of Nations is a concept under which the acts or practices of nations are based on good will and mutuality, rather than strict application and enforcement of rules of law.
- What are INCOTERMS?
INCOTERMS are standardized shipping terms defined by the International Chamber of Commerce, e.g., F.O.B., C.I.F., EX WORKS, etc. The terms divide the responsibility for the cost of carriage, and liability for the safety of the goods between the buyer and seller.
- Do INCOTERMS determine when title to goods passes?
Contrary to general belief, INCOTERMS do not determine when title to goods passes. This is either determined by the applicable governing law, the CISG or specific provisions contained in the agreement.
- Which issues hinge on the timing of title passage to the buyer in an international sale of goods transaction?
- Risk of loss: Transfer of title affects the parties' rights in the event of total or partial loss and damage or destruction of the goods.
- Rejection of goods: Once it has occurred, transfer of title may preclude the buyer from rejecting the goods despite valid complaints of quality, quantity or description.
- Payment for goods: Once the buyer acquires title, the seller can sue the buyer for non-payment.
- Rights of action: After acquiring title, the buyer can enforce its property rights against others through court action or otherwise.
- What is a Romalpa clause?
A Romalpa clause is a title retention clause, which serves to separate the passing of title, and risk of loss and which provides that until payment is received, title remains with the seller. The following is an example of a Romalpa clause. Risk of loss and damage shall pass to the Buyer upon delivery. Title shall pass to the buyer upon payment in full.
- What is the Carriage of Goods by Sea Act (COGSA)?
The Carriage of Goods by Sea Act is a U.S. statute that defines terms and establishes liability for carriers engaged in international maritime transportation. The act limits the carrier's liability to $500 per shipping package, and restricts the filing of claims against the carrier.
- What is the Warsaw Convention?
The Warsaw Convention is a private international law treaty creating certain uniform rules for the liability of international air transport operators. The rules include limitations on liability for injury to passengers or cargo.
- What is a "force majeure" clause?
- A force majeure clause excuses nonperformance arising out of causes beyond either party's control and without any fault or negligence on the part of the non-performing party (so-called "Acts of God").
- A force majeure affects both buyer and seller. For the seller, force majeure may affect its ability to deliver and/or service the goods. For the buyer, force majeure may affect its ability to take delivery and/or to pay for the goods.
- If the parties are not specifically protected by a force majeure clause, then they are left to rely upon the doctrine of frustration for excusing performance in an appropriate case.
- What does the concept of "general average" mean?
General Average is an equitable system that provides for contribution to be given by all interested parties when an accidental loss of ship, cargo, or freight arises as the result of an extraordinary sacrifice, reasonably and voluntarily incurred, in time of peril for the safety of the common adventure.
- What does the term "expropriation" mean?
Expropriation is either the taking of property by a state or its agent, or the permanent transfer of the power of management or control in exchange for adequate and prompt compensation.
- What is an apostille?
An apostille is a certificate that authenticates a notarial act performed in one of the more than 60 countries that subscribe to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents. A list of apostille-issuing authorities for nations that are parties to the referenced Hague Convention can be obtained from the State Department's Fax on Demand Service (202-647-3000).
- What is sovereign immunity?
Sovereign Immunity is a legal doctrine that a sovereign cannot be sued without its content. The modern version of this is that a state cannot be sued for its public acts, but may be sued with regard to its private acts (JURE GESTIONIS) such as operating a national airline.
- What is a treaty?
A treaty is a formal agreement entered into between states in order to define or modify their mutual duties and obligations. Although, there are no technical rules in international law as to treaty form, generally a treaty consists of a preamble, the body, final clauses, and concludes with a testimonium and signatures. Ratification by each of the signatory states is usually required. A treaty may terminate by expiration, dissolution, voidance, or cancellation pursuant to the Vienna Convention on the Law of Treaties.
- What is UCP 500?
UCP 500 is a term of reference for the Uniform Customs and Practices For Documentary Credits, which are widely accepted rules published by the International Chamber of Commerce governing the use of letters of credit in international trade.
- What is a totalization agreement?
A totalization agreement is a type of international social security agreement that the U.S. has entered into with various countries for the purpose of addressing the problems of double social security coverage and fragmented social security coverage, which are often encountered by U.S. citizens or U.S. residents who are employed in foreign countries.
