Principles of European Contract Law Quiz

EU Private Law Quiz Study Notes

• Competition Law: Consumer welfare is a primary objective in EU private law, despite differing schools of thought.
• Historical Examples: Pro-competition rules are exemplified by the Sherman Act, passed by the US Congress in 1890, and relevant jurisprudence.
• American Schools of Thought: Important schools of thought include Harvard and Chicago.
• European Community Competition System: Consists of regulations (e.g., Reg no. 1/2003/EC), jurisprudence of the EC Courts, and articles of the TFUE.
• TFEU Regulations: Regulates undertakings, concerted practices, and the abuse of dominant position under sections 101 and 102.
• Regulation 1/2003/EC: Crucial for understanding the relationship between EU competition law, national competition law, and courts, especially the new relationship between EU and American competition law.
• Fundamental ECJ Case: The Crehan v. Courage case is a fundamental ECJ case regarding the direct application of Section 101 and 102 of the TFUE.
• Product Market Definition: Relevant product markets include interchangeable or substitutable products or services, based on characteristics like their prices, intended use, and descriptions.
• Geographic Market Definition: The area in which firms operate and competition conditions are sufficiently homogenous is considered the relevant geographic market.
• United Brands Case: The ECJ established that specific qualities (e.g., softness, handling) of bananas formed a distinct market in the United Brands case.
• Market Power Definition: Market power is critical for identifying undertakings, concerted practices, and dominant positions.
• Article 101 Violation Consequences: Any violative agreement or decision is automatically void.
• Undertakings Definition: Defining undertakings is crucial to applying Articles 101 and 102, providing a standardized definition.
• Game Theory and Prisoner's Dilemma: Game theory concepts, including the prisoner's dilemma, were developed by John Nash.
• SSNIP: The SSNIP test stands for Small but Significant Non-transitory Increase in Price.
• Article 101.3 Exemption Conditions: Conditions for exemption under Article 101.3 are specific and require improvement of safety standards or increases in efficiency.
• Article 102 TFUE: Provides a description of abusive conducts.
• Impact of EU Legislation on Member States: EU legislation (Articles 101 and 102 TFUE) directly affects national legal systems.
• Passing-on Defense: Allows defendants to argue that losses passed on to customers reduce or negate any damage.
• Damages Actions: Damages are awarded in private enforcement cases when there is a demonstrable loss and a competition law infringement.
• Competition Law and European Private Law: European competition law and private law are intertwined; competition law fosters a level playing field among competitors, while private law provides the framework for contracts.
• Consumer Protection EU Level: European consumer protection measures aim to improve consumer welfare.
• SSNIP Test: A method used to define relevant markets involves a small but significant non-transitory increase in price.
• Product and Geographic Markets: Defining these markets is crucial in the application of European competition law.
• Private Enforcement Cases: Damages are awarded upon demonstrating the existence of competition law infringement.
• Damages Calculation: Damages are typically calculated using lucrum cessans (loss of earnings) and damnum emergens (actual damage).
• Defining Product/Geographic Market (SSNIP test): This is used to determine how products/services are affected by anticompetitive behaviors and calculate market share.
• Agreements: Agreements (and concerted practices) can be beneficial for the internal market, particularly when they improve consumer welfare.
• European Competition and National Competition Law: These laws interplay; national courts must consider European equivalent articles
• Illegal cartels: Criminal sanctions for illegal cartels are not available in every European member State.
• Economic Entities: Certain regulatory bodies (like those in Italy) are considered economic entities, so they may engage in illegal behavior.
• Competition Cases: The European Commission imposed fines in cases such as Consumer Electronics Manufacturers case in 2018, citing violation of Article 101 TFUE.
• General Court/Court of Justice: The General Court and the European Court of Justice play a crucial role in deciding legal cases about European competition law, including how this law applies in other sectors and jurisdictions.
• Game Theory and Prisoner's Dilemma: These concepts are relevant when analyzing competition law issues.
• Matra Hachette case: An important ruling on the interpretation of articles 101 and 101.3.
• US and EU Antitrust law differences: Significant differences exist regarding how illegal behavior can be penalized in the US vs EU legal systems.
• Fundamental Case law: The importance of these cases, for example Van Gend en Loos, Crehan vs Courage, etc., in shaping the application and understanding competition/private law.
• Legal Interpretation of EU Law: The importance of the European Court of Justice (ECJ) in interpreting the meaning and effect of relevant EU law.
• Historical Examples of Antitrust Law Cases: The Matra Hachette and ALCOA cases are critical for understanding the different approaches taken by courts to assess conduct in antitrust legislation.
• Game Theory concepts and how they apply in EU law. European law often considers how stakeholders behave based on the incentives for specific behavior which is analyzed by game theory.
• Damages awards requirements: In order to have damages awarded the fact that the party in question had a demonstrable economic and not just moral harm is key.

Contracts and obligations/rights

• Principles of European Contract Law: Parties are bound by a usage generally applicable to those in a similar situation.
• Confidentiality: Parties are normally required to keep information they exchanged as confidential.
• Agreements and Sufficient Contracts: Contract terms are sufficient for enforcement if parties can determine them and they are defined enough under contract law and the principles associated with the DCFR.
• Sufficient Agreement (Contract): Contracts are considered sufficient when terms are well-defined enabling their enforcement, or can be determined using the European contract law principles.
• Reasonable Intent: Intention of a party to be legally bound by a contract is determined by their statements or actions understood by the other party.
• Essential Contractual Elements: Generally, agreement between the parties, the content of the agreement, and consideration.
• Offer Effective: An offer becomes effective only when it is received by the intended party in the contractual situation.
• Irrevocable Offer: An offer is generally considered irrevocable if stated as such or if there's a stipulated time period.
• Acceptance Effective: Acceptance takes effect when the offeror receives it.
• Offer Rejection: Offers can be expressly or implicitly rejected.
• Silence and Inactivity as Acceptance: Silence or inactivity alone generally does not constitute acceptance according to these principles.
• Contracts and Public Policy: Contracts against public policy (or morals) are null.
• UNIDROIT Principles: The UNIDROIT principles apply to international commercial contracts.
• Applicable Law: This is applicable when no governing law is explicitly chosen.
• Mandatory Character (UNIDROIT): Mandatory character of a provision is usually expressly indicated, not implicitly derived.
• Defective Product Cases: Liability for defective products usually falls on the producer but, in some instances, it might fall on the seller

Test your knowledge on the Principles of European Contract Law with this quiz. Explore key aspects such as remedies, good faith, and non-contractual liability. Perfect for students and professionals alike.