International Commercial Law: Jurisdiction & Law

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Questions and Answers

Where can the German seller choose to sue the Polish buyer under Brussels I rules?

Only in Poland

In either Poland or Italy (correct)

In Italy or Germany only

Only in Germany

What law will apply to the contract if there is no choice-of-law clause stated?

Italian law will apply

German law will apply (correct)

The law of the buyer's domicile will apply

Polish law will apply

What takes precedence when both the national law and international treaty apply?

They are equally prioritized

The court will decide case-by-case which applies

International treaty takes precedence over national laws (correct)

National law always prevails over any international treaty

Which article of Brussels I allows the seller to sue in the place where the goods were delivered?

Article 7(1) Signup and view all the answers

What governs the substance of the dispute according to the scenario described?

CISG Signup and view all the answers

What is the default rule for determining applicable law under Rome I for the sale of goods?

The law of the seller's habitual residence applies Signup and view all the answers

Which factor will NOT influence the jurisdiction where the seller can sue the buyer?

The value of the contract Signup and view all the answers

Under which circumstances would CISG not apply to this transaction?

If both parties exclude it in their contract Signup and view all the answers

What is a key obligation of the seller under CISG?

To deliver machinery that meets the agreed specifications Signup and view all the answers

Under what condition is the buyer not obligated to pay for the machinery?

If the seller fundamentally breached the contract Signup and view all the answers

Which remedy can a buyer pursue if the machinery is defective?

Demand repair or replacement Signup and view all the answers

What remedy is available to the seller if the buyer does not pay?

Require the buyer to pay Signup and view all the answers

What does Brussels I primarily determine in a contract dispute?

Where the case can be heard Signup and view all the answers

If both Germany and Poland are CISG countries, what is the default rule regarding applicable law?

The CISG automatically applies unless excluded by contract Signup and view all the answers

What is a potential complication when applying Brussels I, Rome I, and CISG?

Jurisdiction issues can arise with multiple parties involved Signup and view all the answers

Which of the following is NOT a remedy for a buyer under CISG for non-conforming goods?

Demand compensation for lost profits Signup and view all the answers

Study Notes

International Commercial Law: Brussels I, Rome I, and CISG

Scenario: A German seller contracts with a Polish buyer for machinery intended for use in Italy, but no jurisdiction or choice-of-law clause exists. The machinery malfunctions, leading to a payment dispute.

Brussels I (Jurisdiction)

General Rule: A defendant is usually sued in their domicile.
Special Rule: In sales contracts, a court where the goods were delivered also has jurisdiction.
Outcome: Possible jurisdictions for the German seller are Poland (buyer's domicile) or Italy (delivery location).

Rome I (Choice of Law)

No Explicit Choice: The contract specifies no choice of law.
Default Rule (Sale of Goods): The law of the seller's residence (Germany) usually applies.
International Precedent (CISG): If both countries are under the CISG, it supersedes domestic laws.
Outcome: CISG governs unless the contract excludes it; therefore, the court will likely apply CISG.

CISG (Substantive Rules)

Seller's Obligations (Articles 30-44): The seller should provide goods matching the agreed specifications. Noncompliance could be a breach.
Buyer's Obligations (Articles 53-59): The buyer must pay unless a fundamental breach occurred (e.g., delivering defective goods).
Buyer's Remedies for Non-Conforming Goods (Articles 46-50): The buyer can demand repairs/replacements, reduce payment, or terminate the contract entirely if the breach is significant.
Seller's Remedies for Non-Payment (Articles 61-65): The seller can demand payment, terminate, or claim damages.
Outcome: The final outcome depends on the specific facts of the machinery's condition.

Summary of Application

Brussels I: Determines where to sue.
Rome I: Specifies applicable law - often CISG.
CISG: Outlines specific rules to apply to the contract dispute. Important to consider seller/buyer obligations and remedies for defects.

Complexity

Multiple Jurisdictions: The case involves Germany, Poland, and Italy.
Layered Application: It needs meticulous steps (jurisdiction, choice of law, and substantive law application).
Seller's Decision: The German seller must choose the venue (Poland or Italy).
Court's Analysis: The court must select and apply the correct rules.

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Description

This quiz covers key concepts in International Commercial Law, focusing on the Brussels I Regulation, Rome I Regulation, and the CISG. It presents a scenario regarding a contract dispute between a German seller and a Polish buyer, and explores jurisdiction and choice of law principles governing the case.