LAW 724 FINAL EXAM REVIEW FALL 2010
What is the difference before contract and tort law?
- Contract law deals with the rights and obligations of parties to a legally binding agreement. Tort
law deals with the rights and obligations of businesses that sell products which could cause
harm – no contract between the business and the injured party is required for damages to be
If a plaintiff in product liability case sues a manufacturer for a design defect, what standard of proof
must the plaintiff meet to prove its case?
- Balance of probability (51% +)
If two companies whose places of business are in Contracting States to the CIGS wish to ensure that the
CISG does not apply to their contract, what must they do?
- Must specifically exclude the CISG and state applicable law
You are entering into a legal agreement with a company located in Germany. If you choose Germany as
the governing law for the contract, which law will apply? Is there risk for a Canadian company in
agreeing to this governing law?
- Germany is a CISG country, so the governing law would be automatically CISG unless specifically
excluded in agreement. The risk for Canada would be that Canadian companies aren’t very
familiar with the CISG so the German company would probably be favoured.
A customer enters a store, sees a display of goods on sale for 20%, takes one to the counter and
requests to buy it. Who is the offeror and who is the offeree? Can the store refuse to sell the good to
- Customer is offeror. Yes, store can refuse to sell the good.
An exporter promises to deliver goods to an importer FOB (UK). The importer waits at the place of the
destination (importer’s warehouse) but the goods do not arrive. The importer contacts the exporter and
finds out that the goods are still on the ship. Who is responsible for transportation of the goods from the
ship to the warehouse under this term?
- FOB (UK) means that the delivery ends on the vessel. This means that the buyer is responsible
for transporting the goods from the ship to the warehouse. If a party can prove that they contracted with a more powerful party that used their power to get a
better bargain, can they successfully argue that the contract is unenforceable? Under which principle of
- Pg. 186 in text. Yes, under the law principle of Undue Influence - unequal bargaining power
and improvident bargain
In a CIF contract, what is the seller agreeing to do? When does the property in the goods pass to the
buyer? Can the buyer still reject the goods after this point?
- Pg. 197 in text. CIF is a sale of documents – seller has to take certain steps. Property of the
goods passes to the buyer when the bill of lating is delivered to the buyer. The buyer can reject
the goods in a certain amount of time after he/she has received them, if they do not match
what they were supposed to be.
Is a proposal to sell goods, as described, at price that equates to fair market value, an offer under the
- Pg. 207 in text. If it is directed at the public at large, it is an only an invitation to treat. If it was
directed at specific person(s), then it would be an offer under CISG.
Can a Canadian seller revoke an offer made to a buyer in Israel before it is accepted? If the Israeli buyer
accepts the offer, even after is it revoked, has a valid contract been formed?
- Pg. 208 in text. Under CISG, a firm offer cannot be revoked unless it was specified in an
agreement that there was a limited amount of time for acceptance. Since the offer cannot be
revoked, yes, a valid contract has been formed if the buyer accepts the offer after it has been
The parties to an international sale of goods contract have used FOB Incoterms as the delivery term in
their contract. At what point have the goods been delivered? Does ownership in the goods also pass to
the buyer at that point?
- When they have been cleared for export past the ship rails. Incoterms doesn’t say when
ownership passes. There is a difference between ownership (who owns the goods) and delivery
(who takes the risk during transit). Ownership does not pass until specified in the agreement.
A seller in Hungary contracts with a buyer in Poland to sell goods. The contract was not reduced to
writing. Has an enforceable contract been formed?
- Pg. 206 in text. CISG is the governing law, and under it, the contract does not have to be in
writing. Therefore, it is enforceable. CISG does not have a requirement of writing.
Chapter 8 (pg. 236-241 only!) If a L/C is irrevocable, what must the issuing bank do if the correct documents are tendered by the
- Pg. 238 in text. The bank must pay the amount to get the documents.
Is the letter of credit independent from the underlying transaction between the importer and exporter?
- The primary agreement is the one between the importer and the exporter. The letter of credit is
secondary contract between buyer and bank, so it is a separate contractual agreement from
that of the buyer and seller. Only if the contract says so, can the seller refuse to ship to the
Chapter 9 – Intellectual Property in International Business
Can a government utilized WTO’s dispute settlement process for a breach of TRIPS minimum protection
requirements for IP?
- Pg . 274 in text. Yes, governments can use the WTO dispute settlement process for a breack of
TRIPS, but TRIPS does not tell which country what is patentable.
What two general trading principles are guaranteed by TRIPS?
- Most favoured nation – must treat all nations the same.
- Must treat all imported goods the same as originating goods.
Does a pan-European patent system exist?
- No, patents are given by individual nations.
Can Canadian companies take advantage of the Madrid Protocol for marks?
- Pg. 283 in text. Canada did not sign the Madrid Agreement, so it cannot take advantage of it.
Canada is not a big trademark maker like the US which is why it did not sign.
What are the 3 circumstances in which a trademark may be registered in Canada?
- Pg. 284 in text (bottom of page)
Do you have to register your copyright in order to get protection for it?
- No, once it’s created and it’s fixed, you have protection. Registration is just a security measure
in telling the world that you have the copyright.
Canada has signed both of WIPO’s treaties. Does that signature make those treaty obligations law in
Canada automatically? - No, there is a different between ratifying and signing a treaty. Usually you have to do both.
Signing simply means that the country is considering it and won’t do anything against it.
Ratifying it does not mean it is law; it has to create law for it to take effect.
- Ex: if Canada signed the WIPO treaty but did not pass legislation, this is not a breach of the law.
The shape of the Perrier bottle is an industrial design. How can Perrier protect its design in various
countries at the same time?
- Pg. 293 in text. You can get international protection wi