INTERNATIONAL BUSINESS LAW-SPRING 2020-BA/LW 3084

AMERICAN UNIVERSITY OF PARIS

Mr. FRED EINBINDER

TAKE-HOME EXAM

EXAM DUE: TUESDAY MAY 5th, 2020 at 18H (6p.m.) PARIS TIME by EMAIL to
Professor EINBINDER

This is an individual and independent project. As it is a take home exam it ought to be well
organized, typed and comprehensive. The extensive readings in the course since the
Midterm will permit you to answer but feel free to undertake research (eg. Update of Law
of the Jungle since the book’s publication) Please cite works used (outside research) as
well as ‘inside’ (handouts)

 (120 Points)-TOTAL
1-(INTERNATIONAL SALES CONTRACTS are greatly facilitated by the existence of two truly
international ‘lex mercatoria’ mechanisms known and practice by businesses throughout
the world; INCOTERMS and LETTER OF CREDIT Arrangements. Describe how Incoterms and
a letter of credit arrangement works in practice by describing an international sale of 1
million (badly needed) surgical masks ordered by a French buyer in Paris from a Chinese
seller in Beijing.

You should illustrate the arrangement using 4 ‘parties’ -use boxes-Seller, Buyer and the
two banks who would be involved. How would Incoterms allocate responsibilities and risk
of loss? How would the letter of credit ensure payment? Are there any exceptions to the
rule that the sales contract and the letter of credit arrangement are legally autonomous ?
(25 points)

2-More things can go wrong in international contracts than domestic. Does the law offer
any relief to parties (usually it is the seller who wishes to invoke such legal theories)
discharging or permiting a dely in performance of contracts when something beyond the
control (a relative concept) occurs such as CONVID 19, Imposition of sanctions preventing
export (US-Iran), inability to travel (Covid or change in law)…. ? We have discovered that
the answer is yes and that the theories for these legal “excuses for performance” differ
from country to country. Discuss English (recall Edward VII’s coronation), French, US and
German law of excuses for non-performance (you are free to research other countries if
you wish) 20 points)

1
3- Paul Barrett’s, Law of the Jungle book relates the ongoing fascinating saga of one of the
biggest international business law cases in history.

Class Readings and discussion for the latter part of the course focused on several
‘themes’ involved in this Ecuadorian/Texaco/Chevron cases Law of the Jungle
narrative, including international business dispute resolution (several points to
discuss within this general theme) , the ethics of legal professionals, human rights,
law and the media, corruption, litigation financing and perhaps others. Fully discuss
these themes by relating how they played out in LAW OF THE JUNGLE. You should
also weave other cases and developments into your answer.

What does this incredible real story tell us about the weaknesses of international
business law?

Where is the saga today? (45 points)

4- Abraham Lincoln once gave this advice relating to litigation “Persuade your
neighbors to compromise whenever they can. Point out to them how the
nominal winner is often the real loser-in fees, expenses, and waste of time. As a
peacemaker the lawyer has a superior opportunity of being a good man”

Lincoln’s comment was made in the context of domestic American litigation but its
wisdom may be even more pronounced in international business law cases.

In what ways does international commerce increase the costs, frustrations,

management time lost from litigation? Discuss the legal issues that exacerbate
problems when one faced litigation on international business law issues. How
might these legal problems be prevented or reduced during the negotiation of
contract stage?

In this context, Compare International arbitration with International litigation.

What are their respective advantages and disadvantages?

Discuss cases involving arbitration and litigation studied. (30 points)