International Jurisdiction in Tort and Arbitration

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Questions and Answers

What does Article 7(2) establish regarding jurisdiction in tort matters?

  • Jurisdiction can only be established in national courts.
  • Jurisdiction is determined by the harmful event's location. (correct)
  • Jurisdiction is limited to the plaintiff's residence.
  • Jurisdiction is based on the defendant's nationality.

Under Article 25, what is necessary for the validity of a forum agreement?

  • Verbal confirmation from both parties.
  • A minimum of two witnesses present.
  • Formal validity requirements as stipulated. (correct)
  • Approval from a legal authority.

What happens if a contract containing a Choice of Court agreement is deemed null and void?

  • It remains binding under international law.
  • The parties must re-negotiate a new agreement.
  • National law from the COCA state is applied. (correct)
  • The law applied should be that of any state party.

Which article addresses exclusive jurisdiction in choice of court agreements?

<p>Article 26 (A)</p> Signup and view all the answers

What is the implication of prorogation in court jurisdiction?

<p>It grants jurisdiction based on mutual agreement. (A)</p> Signup and view all the answers

What does Article 25(5) relate to regarding contracts?

<p>The doctrine of separability. (B)</p> Signup and view all the answers

Under what condition can a court proceed despite a lack of contest to jurisdiction?

<p>When there is an implied consent from the parties. (C)</p> Signup and view all the answers

What is a key characteristic of an arbitration agreement in writing?

<p>Its content must be recorded in any form. (B)</p> Signup and view all the answers

Which of the following best describes 'forum delicti commissi' in the context of tort jurisdiction?

<p>The court where the tort is committed. (B)</p> Signup and view all the answers

How can an arbitration agreement be considered in writing through electronic means?

<p>The information must be accessible for subsequent reference. (B)</p> Signup and view all the answers

Which of the following accurately defines 'data message' in relation to arbitration agreements?

<p>Any information generated or stored electronically. (B)</p> Signup and view all the answers

What forms of communication qualify as electronic communication for arbitration agreements?

<p>Electronic mail and telex. (B)</p> Signup and view all the answers

What does not satisfy the requirement for an arbitration agreement to be in writing?

<p>A verbal agreement without documentation. (D)</p> Signup and view all the answers

Which of the following statements about electronic arbitration agreements is false?

<p>The electronic format disqualifies any oral discussions. (B)</p> Signup and view all the answers

What is a common misconception regarding the recording of arbitration agreements?

<p>It must be recorded in a formal legal format. (C)</p> Signup and view all the answers

Which of the following is not included in the definition of 'data message'?

<p>Information stored on paper. (B)</p> Signup and view all the answers

What is the principle of Article 4 (1) regarding torts or delicts?

<p>The law of the place where the damage occurs applies. (A)</p> Signup and view all the answers

Which Article provides an exception to the general rule of lex loci damni?

<p>Article 4 (2) (B)</p> Signup and view all the answers

How does Article 3 address the issue of laws applied by regulation?

<p>Any specified law shall be applied regardless of its Member State status. (A)</p> Signup and view all the answers

What condition must be met for a law to apply under Article 4 (2)?

<p>The party affected must be a resident of the same country as the damage. (D)</p> Signup and view all the answers

What does Article 5 (1) address specifically?

<p>Product liability in relation to non-contractual obligations. (D)</p> Signup and view all the answers

What is the key aspect of Article 3 (3) concerning jurisdiction?

<p>It allows for claims based on close connections. (A)</p> Signup and view all the answers

What is the primary focus of Article 4(1) regarding the choice of law?

<p>The country with the closest connection to the matter. (A)</p> Signup and view all the answers

Which statement accurately reflects 'lex communis' as stated in Article 4 (2)?

<p>It refers to the habitual residence's law applying to certain cases. (B)</p> Signup and view all the answers

Which option correctly captures the general principle of Article 5 concerning product liability?

<p>Non-contractual obligations concerning product damage follow specific legal frameworks. (D)</p> Signup and view all the answers

Which article presumes a close connection for choice of law?

<p>Article 4(2) (A)</p> Signup and view all the answers

Under which condition does Article 7(1) apply?

<p>When there is a close connection to another country’s mandatory rules. (D)</p> Signup and view all the answers

What is the role of Article 7(2) concerning mandatory laws?

<p>It focuses on the mandatory rules of the law of the forum. (C)</p> Signup and view all the answers

What governs conflicts relating to non-contractual obligations?

<p>Rome II Regulation (B)</p> Signup and view all the answers

Which statement correctly describes the scope of the Rome I Regulation?

<p>It applies only to contractual obligations in all EU MS except Denmark. (A)</p> Signup and view all the answers

Which article represents a combination of strict and discretionary rules in contractual law?

<p>Rome I Regulation (A)</p> Signup and view all the answers

What determines the choice of law under the closest connection test?

<p>The country closely connected to the dispute. (C)</p> Signup and view all the answers

What does Article 3 state about arbitration awards in contracting states?

<p>They must be recognized as binding and enforced. (C)</p> Signup and view all the answers

What condition is outlined in Article 3 regarding fees or charges related to arbitration awards?

<p>Fees for international and domestic awards should be comparable. (D)</p> Signup and view all the answers

According to the content, what is the primary role of courts with respect to arbitral tribunals?

<p>To have minimal interference with arbitral tribunals. (C)</p> Signup and view all the answers

What does Article 5 pertain to in the arbitration context?

<p>The refusal of recognition of arbitration awards. (A)</p> Signup and view all the answers

What principle related to arbitral awards is established in the content provided?

<p>Arbitral awards are recognized globally as binding. (D)</p> Signup and view all the answers

In which scenario might courts be allowed to interfere with arbitral tribunals?

<p>When procedural laws are not followed. (C)</p> Signup and view all the answers

Which of the following best describes the enforcement of arbitration awards as per the given content?

<p>They must be enforced in accordance with local procedural rules. (D)</p> Signup and view all the answers

What does the term 'arbitral tribunal' refer to according to the content?

<p>A body that resolves disputes outside of court. (B)</p> Signup and view all the answers

What does Article 94 state concerning contracting states with similar sales law?

<p>They can declare internal relations are not bound by the CISG. (A)</p> Signup and view all the answers

Which of the following accurately describes the out-out provision in Article 1(1)(a)?

<p>It enables parties in similar sales law states to not be bound by CISG. (A)</p> Signup and view all the answers

What option does Article 95 provide regarding Article 1(1)(b)?

<p>It permits opting-out for specific states. (A)</p> Signup and view all the answers

How is the law governing a contract determined under Rome I if there is no agreement from the parties?

<p>It uses the parties' most significant relationship criterion. (D)</p> Signup and view all the answers

What do international mandatory or overriding provisions refer to in Rome I?

<p>They must be followed regardless of party agreements. (D)</p> Signup and view all the answers

In the case where a German court is involved, what is the result if there is no choice of law agreement?

<p>CISG will apply since both parties are CISG States. (A)</p> Signup and view all the answers

If no law governing agreement exists, how would a Danish court decide the law for the contract?

<p>It will apply CISG regulations. (B)</p> Signup and view all the answers

Can parties involved in a contract under Rome I agree on the law governing it?

<p>They can agree to choose the law of a non-member state as well. (B)</p> Signup and view all the answers

Flashcards

Forum Delicti Commissi

A principle in tort law that grants jurisdiction to the court where the harmful event occurred.

Choice of Court Agreement (COCA)

An agreement between parties that designates a specific court for resolving disputes.

Express COCA

A type of COCA where the parties explicitly state the chosen court in a written agreement.

Implied COCA

A type of COCA where the chosen court is implied through the parties' actions or conduct.

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Doctrine of Separability

A legal principle that validates a COCA even if other parts of the contract are invalid.

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Prorogation

When a court accepts a COCA and proceeds with the case, even if it did not initially have jurisdiction (based on where the claim arose).

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Derogation

When a court denies jurisdiction after parties agree on a specific court, effectively rejecting the COCA.

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Substantial Validity (of a contract)

When a contract is invalid due to lack of legal requirements (e.g., lack of legal capacity).

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Closest Connection Test

Determines the applicable law based on the country with the strongest connection to the dispute. This is a central principle in the Rome I Regulation.

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Article 4(2)

A legal presumption that the closest connection test applies, unless overridden by a specific choice of law provision.

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Article 7(1)

Enables courts to apply mandatory rules (laws with strong public policy) from another country if the case has a strong connection to that country.

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Article 7(2)

Allows courts to apply mandatory rules of the forum state (where the case is being heard), even if those rules differ from the generally applicable law of the contract.

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Rome I Regulation

A set of rules governing conflicts of law, focusing on contractual obligations within the EU. (Excluding Denmark)

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Rome II Regulation

A set of rules governing conflicts of law concerning non-contractual obligations within the EU.

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Choice of Law

The principle that a choice of law can be made by the parties involved in a contract, subject to limitations.

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Statute of Limitations

A legal rule that seeks to prevent a party from bringing legal action after considerable delay.

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Article 94 of the CISG

A provision that allows a state to 'opt out' of the CISG, choosing instead to apply its own internal sales law when both parties are from the same state.

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Article 95 of the CISG

Allows a state to 'opt out' of Article 1(1)(b) of the CISG, which applies the CISG to contracts where both parties are from different states but have a 'closely connected place of business' in a CISG state.

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CISG Article 1(1)(a)

The CISG applies if both parties are from states that have ratified the CISG (like Germany and Denmark).

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Can parties choose the applicable law?

Yes, parties can agree on the applicable law in their sales contract. This is allowed in Article 4(1) of the CISG.

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German court decision regarding the law governing the contract

A German court would likely apply the CISG, since both Germany and Denmark are contracting states to the CISG.

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Danish court decision regarding the law governing the contract

Similar to the German court decision, a Danish court would likely apply the CISG due to both countries being contracting states, as per Article 1(1)(a) of the CISG.

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CISG application when parties agree on law governing the contract

This is a tricky scenario, as the CISG is not universally applicable. A court would need to carefully consider all factors, including the parties' place of business, the 'closely connected' provision, and specific circumstances.

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"International mandatory or overriding provisions"

These are legal rules that cannot be deviated from, even by contract. This is a fundamental principle of international law and applies across various areas including consumer protection and human rights.

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Written Arbitration Agreement

An arbitration agreement is considered in writing if its content is recorded in any way, regardless of how the agreement was originally made (verbally, through actions, etc.).

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Electronic Arbitration Agreements

Electronic communications meet the writing requirement for an arbitration agreement if the information is readily accessible and reusable.

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Electronic Communication

Electronic communication refers to any form of communication that uses data messages.

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Data Message

Data message implies information generated, sent, received, or stored electronically, including formats like EDI, email, telegram, telex, and fax.

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Lex Loci Damni

The law of the place where the damage occurs determines applicable law.

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Lex Communis

An exception to Lex Loci Damni, where the habitual residence of the parties determines applicable law.

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Manifestly More Closely Connected

A specific law within the Rome I Regulation, giving courts jurisdiction when the case has a stronger connection to another country than the place of damage.

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Product Liability

The Rome I Regulation states that Article 4(2) does not apply, and instead, the law of the country where the product was put into circulation applies in cases of product liability.

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Conflict of Laws

A legal rule used to determine which law applies in a legal dispute, especially when the involved parties are from different countries.

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Universal Application

A legal principle stating that all laws under the Rome I Regulation apply equally, regardless of the country where the law originated.

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Habitual Residence

A legal principle used to determine applicable law based on where the parties are habitually resident.

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Product Liability Exception

A legal rule used to determine applicable law for non-contractual obligations arising from damage caused by a product. This rule is an exception to the general rule of 'lex loci damni'.

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What does the UNCITRAL Model Law promote in terms of arbitration awards?

An arbitration award is considered legally binding and must be upheld by the courts of contracting states in the UNCITRAL Model Law.

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What principle regarding judicial intervention in arbitration is outlined in Article 5 of the UNCITRAL Model Law?

Courts should not interfere with the procedures and decisions of an arbitral tribunal.

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According to the UNCITRAL Model Law, what obligation do contracting states have regarding arbitration awards?

Each contracting state must ensure that arbitration awards are recognized and enforced in its territory.

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What is the principle of 'non-discrimination' in the context of the UNCITRAL Model Law?

The UNCITRAL Model Law aims to ensure that recognition and enforcement of arbitral awards don't face burdensome conditions compared to domestic awards.

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How does the UNCITRAL Model Law protect against potentially discriminatory enforcement practices?

Courts should not impose more demanding conditions or stricter rules for recognizing and enforcing international arbitration awards than for domestic arbitration.

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What is the principle of 'judicial non-interference' in arbitration?

Arbitral tribunals should operate autonomously, free from undue interference by national courts.

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What are the procedural rules that apply in the recognition and enforcement of arbitral awards?

The procedural rules of the country where recognition or enforcement is sought should be followed.

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According to the UNCITRAL Model Law, what is the legal status of an arbitral award?

Under the UNCITRAL Model Law, arbitration awards have legal force and should be upheld by the courts of the contracting states.

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Study Notes

International Commercial Law - Exam

  • Standard answers to the exam cover general provisions, typical questions, and common legislation.
  • Students should prepare full assignments and read supplementary articles and judgements.

Lection 1 - Introduction

  • International Litigation: A public system of adjudication, with considerations given to the efficiency of state courts and corruption.
  • Key questions in litigation: Location of court proceedings, choice of law (bound by the contract's national law), and enforcement of judgments across state lines.

Arbitration

  • A private system of adjudication, with private courts (Arbitral Tribunals) established by parties.
  • Pros: Procedural party autonomy, neutral forum, expert arbitrators.
  • Cons: Potential for disputes over jurisdiction and enforceability, limited discovery.
  • Features Arbitration agreement, arbitrators (chosen by parties or institution), award (binding and enforceable).
  • Issues: Seat of tribunal, choice of law rules, recognition/enforcement abroad.

Regulatory Framework for Arbitration

  • Essential framework for arbitration: The arbitration agreement, national arbitration legislation (seat country), institutional rules (UNCITRAL Ad hoc Arbitration Rules, IBA Rules on Evidence).
  • Other considerations: Types of arbitration (ad hoc / institutional), practical considerations (costs, time, expertise)

International Sales Law (CISG)

  • Uniform sales law: Purpose is to create a uniform sales law applicable to contracts internationally between commercial parties; superior to national rules.
  • Focus area: Covers the international sales of goods, with allocation of risks, transaction costs and practical implications.

Brussels 1 - Structure and Jurisdiction

  • Parallel system: Jurisdiction differences based on whether the defendant is domiciled in a Member State (MS) or a non-MS.
  • Exceptions: Consumer, employment, exclusive jurisdiction (choice of court agreements).
  • Recognition: Brussels 1 covers all MS judgments, while non-MS judgments are governed by national law.

General Jurisdiction

  • Relevance of other factors: Group Josi, case C-412/98
  • Strict/discretionary rules: Owusu case, C-291/02

Domicile

  • Definition: Based on statutory seat, central administration, or the principal place of business.
  • Multiple domiciles: Possible for legal entities (companies).
  • International elements: Applying domestic laws to determine domicile in cross-border cases.

Applicable Law in Contract and Tort

  • Choice-of-law rules: Forum shopping, lex causae (law of the cause), lex loci contractus (law of the place where the contract was made).
  • Overriding mandatory provisions: Restricting the parties’ freedom in the choice process.
  • Legislative approach: Rome Convention, Rome I Regulation, and CISG (e.g., in sales of goods).

Recognition and Enforcement of Foreign Judgments

  • Direct jurisdiction: Responsibility of the court to determine if its jurisdiction applies.
  • Indirect jurisdiction: Responsibility of a different court to determine whether another court's jurisdiction was properly exercised.

International Commercial Arbitration - Key Findings

  • Arbitration definition: A private judicial dispute resolution.
  • Types of arbitration: Ad hoc, Institutional (e.g., ICC, AAA).
  • International elements: Seat of tribunal, choice of applicable law, enforceability of awards.

CISG - Key Findings (Introduction and Overview)

  • Purpose: Aiming for uniform and worldwide sales law.
  • Countries participating: A large number of states worldwide.
  • Key division: Formation of the contract, obligation of the parties, passing of risk.

Scope of Application

  • Sales of goods contracts: CISG is pertinent if both parties have their business locations in different states.
  • Opting out of CISG: Possible when both parties consent - explicitly in the contract.
  • Non-contracting states: CISG may still apply within those jurisdictions based on the specific wording of the convention (e.g., the UK and CISG, indirect application via applicable laws).

Applicable Law in Contracts(Part 2)

  • Exclusions: Focus on business-to-business contracts/commercial transactions, excluding transactions that involve personal, family, and household purposes.
  • Formation: Covers offer and acceptance, including negotiations and the determination of the price, contract formation process, when it becomes effective, and possible rejections.

Passing of Risk

  • Passage of risk: Time when risk is passed from the seller to buyer.
  • Crucial for liability: Key element in determining who's responsibility it is when goods are lost or damaged in transit between buyer and seller.

Remedies for Breach

  • Specific performance: Remedy to demand the other party to execute their obligations in the contract.
  • Damages: Damages equal to the loss and profit (consequence of the breach).
  • Reductions in the price: Buyer can reduce price in proportion to the value delivered against what was expected.

Contract Formation (Chapter 3)

  • Offer: A sufficiently definite proposal to another party to form a binding contract.
  • Acceptance: A party's unqualified assent to the terms of the offer.
  • Revocation: Withdrawal of an offer by the offeror before acceptance.
  • Key articles: Covers details of the formation process and potential points of contention, making it vital for parties in international contracts.

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