Chpt 30: International Stuff

Question 1

How do companies deal with the complexity of exporting goods?

Answer 1

Multiple parties and multiple, related contracts are created

Question 2

What are export houses/freight forwarders?

Answer 2

Specialist firms that make arrangements for shipment, insurance and financing of export sales

Question 3

What is the proper law of a contract?

Answer 3

The jurisdiction that the terms of a contract or disputes are interpreted/decided

Question 4

How is proper law decided?

Answer 4

1) Expressly stated in the contract
2) Courts will infer it based on: other terms in the contract, legal terminology used
3) Otherwise, courts will determine it based on: place contract was formed, performed, subject matter, place of business

Question 5

How have contract terminology harmonized?

Answer 5

• Incoterms have become the set of standard commercial practice for international contracts
• International organizations have encouraged the adoption of standard form contracts

Question 6

How is price determined in export contracts?

Answer 6

• A contract should define the currency used to define payment and the currency used to actually pay
• Should price in a stable currency to avoid fluctuations

Question 7

What is a way to reduce risk in international payments?

Answer 7

• Ensure no exchange controls are on the payment currency
• Ensure payment made in hard currency
• Use Foreign Exchange Risk Management techniques such as borrowing in foreign currency or allowing for the sale of foreign currency

Question 8

What should be kept in mind when importing/exporting

Answer 8

• Proper Law
• Common Understanding of Terminology
• Currency
• Timezone
• How disputes will be resolved
• Choice of forum

Question 9

How do Canadian courts decide if whether to assume jurisdiction over a contract?

Answer 9

1) Decided if the province where the lawsuit was started has jurisdiction at all
2) If jurisdiction is established, the defendant can still ask to use a more appropriate foreign court

Question 10

What must the plaintiff prove to get jursidiction in Canada

Answer 10

There is a real and substantial connection with country or province the action was commenced

Question 11

What four factors are used to establish a real and substantial connection in tort?

Answer 11

1) Defendant is a resident
2) Defendant carries business in jurisdiction
3) Tort occurred here
4) Contract was made in jursidiction

Question 12

What happens if not choice of forum clause exists?

Answer 12

Court decides by looking at

1) Where contract was performed
2) Where damage was sustained
3) Property/goods placement
4) Contract said it should be governed by laws of that place

Question 13

Who doesn’t have standing in Canada?

Answer 13

Corporation not registered or licensed in Canada cannot be a plaintiff

Very difficult to have a defendant not in Canada

Question 14

What may be required by a foriegn [laintiff?

Answer 14

security for costs- legal fee deposit

Question 15

Can jursdicting country apply the laws of another?

Answer 15

Yes if the contract stipulates as such

Question 16

What happens if a defendant doesn’t have assets in the country of jursidiction?

Answer 16

Only pursue assets in other country if followed court proceedings of the local forum

Question 17

Can commercial arbitration be used in import/export contract law

Answer 17

Only if voluntary or stipulation in the original contract