Lite-On Peripherals, Inc. was a California-based corporation engaged in the computer hardware business. Lite-On’s parent company was Silitek Corporation, a Taiwan-based corporation. On January 22, 1996, Burlington Air Express, Inc. received 1,000 cartons comprised of 5,000 computer keyboards from Silitek in Keelung, Taiwan, for transportation to Los Angeles, California. Burlington issued a bill of lading in the form of its own negotiable combined transport bill of lading. The bill provided that the goods were “consigned to order of ” Reveal Computer Products, Inc. in California and were to be delivered to Reveal only upon surrender of a duly endorsed copy of said bill. The price of all 5,000 keyboards contained in the 1,000 cartons was $202,800. Despite the presence of such a provision on the face of its bill, Burlington delivered the computer keyboards to Reveal without obtaining a copy of the bill. In fact, the bill was in the hands of Lite-On, Silitek’s assignee, at the time the goods were delivered to Reveal. Furthermore, type-written portions of the bill of lading provided that Lite-On was to be notified before delivery to Reveal was attempted. Burlington made no efforts to notify Lite-On. Finally, Lite-On, prior to delivery, notified Burlington by telephone and faxed letter that no delivery was to be made to Reveal as its creditworthiness was in question and the original bill of lading was in Lite-On’s possession. Notwithstanding such a warning from Lite-On or the terms of the bill of lading, Burlington delivered the entire shipment to Reveal on or about February 6, 1996. Lite-On was eventually able to recover 2,495 of the 5,000 keyboards from Reveal. However, 2,505 of the items were never recovered. Reveal failed to pay Silitek or Lite-On for the computer keyboards and subsequently filed bankruptcy. The value of the 2,505 keyboards improperly delivered to Reveal and unrecoverable by Lite-On was $101,602.80. Lite-On sued Burlington for misdelivery, conversion, negligence, and breach of contract. The district court held in favor of Lite-On, and Burlington appealed. What should be the outcome on appeal? Lite-On Peripherals, Inc. v. Burlington Air Express, Inc., 255 F.3d 1189 (9th Cir. 2001).
> Inner Secrets entered 2,000 dozen boxer-style shorts from Hong Kong. The boxer shorts were made of cotton flannel in a plaid pattern, with a waistband, a side length of 17 inches, and two small nonfunctional buttons on the waistband above the fly. Two se
> Was this confiscation a commercial activity in which a private businessperson could engage? Was the Cuban government’s assertion of rights to post-intervention sums paid for cigars a commercial act? Is the analysis any different with respect to pre-inter
> CamelBak imported backpacks used for outdoor activities and designed to deliver “hands-free” water on-the-go. Each of the subject articles is a textile bag with padded shoulder straps and an insulated plastic reservoir for beverages, flexible tubing, a b
> Allstar imported a polyester fleece textile product that is similar to a blanket, but has sleeves for arms. It was in one size only, measuring 71 × 54 inches, with sleeves 28 inches long. There was no closure and it was open in the back. The article is r
> Assume your cellphone is assembled in China from parts that originate in dozens of countries. What factors must you be able to prove to U.S. Customs in order to mark the phone as “Assembled in China?
> Use the Customs Rulings Online Search System (CROSS) on the website of U.S. Customs and Border Protection to find rulings that might help in determining the following classifications: a. You intend to obtain a saw blade produced in England and then ship
> In a U.S. AD investigation, the ITA requests information from foreign producers or exporters on the foreign market value of their product in their home market. Respondents are expected to comply in a timely and accurate manner. May the ITA refuse to cons
> During the recession of 2009, the U.S. government financially “bailed out” the American automotive industry. The China Association of Automobile Manufacturers then petitioned the Ministry of Commerce of the People’s Republic of China (MOFCOM) to place AD
> The 2012 amendments to the CVD statute, cited in this chapter, permits CVD duties on imports from NME countries retroactively to 2006. Wireking, an affected importer, argued that this violated the Ex Post Facto provisions of the Constitution, prohibiting
> According to the U.S. Department of Commerce, in 2015 there were $1.1 billion of “large residential washers” imported from China. Whirlpool, a Michigan manufacturer, filed petitions for AD duties on washers made in China by Samsung and LG (respondents).
> U.S. presidents have considerable authority from Congress to protect domestic industry from foreign competition. But that authority has its limits. Are you able to list and describe the range of options under U.S. law that are available to a president wh
> Why must corporations be concerned about human rights issues when doing business internationally? Who are the “stakeholders” of a public corporation, and what is management’s responsibility to them?
> How should the FSIA apply if a government purchases private property as an embassy and violates local ordinances in its operation? What if a government-owned airline sells a tour package to a private citizen, and then detains her and refuses her entry in
> Pebble Beach Company (Pebble Beach) is a well-known golf course and resort located in Monterey County, California. The golf resort has used “Pebble Beach” as its trade name since 1956. Pebble Beach operates a website located at www. pebblebeach.com. Cadd
> Three judgments of the Rolls of Oleron appear in this chapter. Early ship owners, mariners, and merchants found it necessary for all parties aboard ship to share in the risks of the voyage. Explain how these judgments accomplished that.
> A shipper of fruits and vegetables delivered a refrigerated van of produce to the S.S. Bayamon at the port of Elizabeth, New Jersey, on September 22 for shipment to San Juan, Puerto Rico. The ship was supposed to sail that day but was unable to do so bec
> The WTO is a multilateral trade organization with member nations from all regions of the world. The majority are developing countries. The WTO agreements permit countries to enter into bilateral or regional trade pacts, or to create free trade areas and
> Explain the benefits of a multilateral trading system based on reciprocal tariff reductions. During the early days of the Trump Administration, the president called for an emphasis on “bilateral trade.” Explain how this departs from America’s position on
> Businesses and consumers in China process more than $1 trillion (U.S. equivalent) in electronic payments every year. The United States claimed that the Chinese government used several regulatory requirements that had the effect of only allowing one compa
> In 2001, an outbreak of hoof-and-mouth disease threatened the meat supply of Europe. This virus is spread through the air or by contact. To control its spread, millions of cattle, sheep, and pigs were slaughtered and burned; export and transportation of
> British Columbia, Canada, requires grocery stores to sell imported wine only within a “store within a store,” although it allows domestic BC wine to be sold on regular store shelves. The rule is contained in policy directives of the BC Liquor Control and
> There has long been debate over whether countries should take unilateral action to redress foreign trade barriers or seek to resolve the issue through negotiations. What do you see as the advantages or disadvantages of the U.S. pursuing trade remedies th
> Every year, the U.S. Trade Representative issues a report on foreign government trade barriers to U.S. goods and services, known as the National Trade Estimate Report on Foreign Trade Barriers. Locate the most recent report, choose three countries, and d
> U.S. antitrust law reflects U.S. economic policy. If U.S. antitrust law resolves an economic dispute among British companies, has U.S. economic policy been extended to Britain? What are the implications of the United Kingdom’s requirement that British co
> The controversial Trans-Pacific Partnership Agreement was negotiated and signed by President Obama on the basis of trade promotion authority from Congress. It includes 12 countries of Asia and the Pacific Rim, but not including China. The TPP includes pr
> What are the limits on the president’s use of executive orders?
> What are the most common written mechanisms for issuing presidential statements or directives, and how are they generally used?
> Due to threats by the president to set import quotas, the U.S. State Department negotiated directly with European and Japanese steel producers to limit their companies’ exports to the United States. No foreign government was party to the agreement. Altho
> What is meant by the president’s “trade promotion authority?” In what way does it enhance the president’s trade negotiating authority with other nations?
> What recent executive orders, memoranda, or proclamations have been issued by the president affecting U.S. international trade?
> NAFT was a New York corporation engaged in the business of importing electronic equipment. In 1994, NAFT purchased $1.8 million in goods from Huston Electronics Company, a Taiwanese corporation. Huston was affiliated with C.M. Hung Company from which it
> The seller of goods has a right to proceed judicially against an issuing bank that dishonors its obligation under an irrevocable letter of credit, just as the seller has the right to proceed directly against the buyer. Should the issuing bank also be lia
> Robalen, Inc. was in the business of purchasing and selling yarns, fibers, and plastic resins. In March 1996, Robalen’s customer, Resilux, N.V. of Belgium, opened an irrevocable letter of credit with Generale de Banque, S.A., as the issuing bank for the
> In 2011, Mago International, a New York company, entered into a contract to sell meat products to NTP Genita, a company based in Kosovo. Mago required Genita to obtain a standby letter of credit issued by Bank for Business, a Kosovar bank, and confir
> English courts have no authority to interpret treaties, whereas U.S. courts do. What arguments suggest that the English approach is preferable? What arguments indicate that the U.S. approach is better?
> The rule of strict compliance in New York is best illustrated by Beyene v. Irving Trust Co., 762 F.2d 4 (2d Cir. 1985). The letter of credit specified that payment be made on presentation of a bill of lading naming “Mohammed Sofan” as the party to be not
> Wade entered into a contract to sell irrigation equipment to Ribadalgo, its Ecuadorian distributor. Ribadalgo obtained an irrevocable letter of credit in the amount of $400,000 from Banco General Runinahui, S.A. (Banco), a bank in Quito, Ecuador. The let
> Sony Corp. packed a shipment of videocassette tapes into a 40-foot ocean container for transport to England. Sony put the tapes into 1,320 cardboard cartons, then strapped the cartons onto 52 wooden pallets. The pallets were put into one shipment contain
> Assume a passenger dies aboard an international flight, and that there was no defibrillator aboard the aircraft that might have been used to revive him. Do you think the failure to have a defibrillator is an event “external to the passenger?” Do you thin
> Fishman shipped a container of boys’ pants on a ship owned by Tropical. The container was lost at sea due to improper storage. The pants were packed into bundles of 12 each and placed into what is known in the industry as a “big pack.” A “big pack” is si
> In 2004, Ellen Kruger was boarding a flight from San Francisco to Seattle, on her way home from Australia, when she was struck on the head with a backpack swung by another passenger. During the flight she became ill, vomited, and remained unconscious for
> The Plaintiff purchased a round-trip ticket on British Airways between London and Denver. Three days later she purchased a round-trip ticket on American Airlines between Denver and Washington, DC. During the flight between Denver and Washington, she was
> The plaintiff was traveling by air from Rome to Philadelphia. Being highly allergic to gluten, she had requested a gluten-free meal at the time she booked the flight. She again informed the flight attendant that she required a gluten-free meal. She was s
> Empresa Estatal Petroleos de Ecuador (PetroEcuador) contracted with BP Oil International, Ltd. for the purchase of 140,000 barrels of gasoline to be delivered CFR from Texas to Ecuador. The contract separately provided that the terms were governed by Ecu
> C-ART, Ltd. was an exporter of goods based in Hong Kong. C-ART entered into a contract with the New York Merchandising Company, a New York importing company, for the purchase of goods from manufacturers in Hong Kong. The goods were shipped by Hong Kong I
> Why would a British company bring a competition lawsuit under U.S. antitrust laws rather than EU competition law? What advantages does a company have in alleging an antitrust conspiracy? Describe the differences between U.S. law and EU law in the areas o
> The defendant agreed to sell watches to the buyer in Mexico. A notation was printed at the bottom of the contract that, translated into English, reads as follows: “Please send the merchandise in cardboard boxes duly strapped with metal bands via air parc
> Shared Imaging, a U.S. company, agreed to purchase an MRI machine from Neuromed, a German seller. The onepage contract of sale stated that the delivery terms were “CIF New York Seaport, the buyer will arrange and pay for customs clearance as well as tran
> Phillips contracted to buy naphtha from Tradax for shipment from Algeria to Puerto Rico on C&F terms. Shipment was to be made between September 20 and 28, 1981. The agreement incorporated the ICC Incoterms. It also contained a force majeure clause that s
> In March 1999, China North Chemical Industries Corporation and Beston Chemical Corporation entered into a contract under which Nocinco agreed to sell to Beston 718 pallets of explosive boosters deliverable “CIF” to Berwick, Louisiana, for which Beston ag
> Bruitrix held a bill of lading covering a shipment of washing machines that it had purchased. The washing machines were placed into a bonded warehouse operated by the British Transport Commission. Bruitrix pledged the bill of lading to its creditor, Barc
> A U.S. purchaser sued a German limited partnership alleging that the partnership breached a contract to deliver 15,000–18,000 metric tons of used Russian railroad rail to the U.S. company for recycling into other products. The rail was to be shipped from
> The Uniform Foreign Money Judgments Recognition Act of 1962 and the Uniform Foreign-Country Money Judgments Recognition Act of 2005 do not mention any requirement of reciprocity. However, several states will not recognize foreign judgments without assura
> A U.S. software manufacturer sold software for processing credit card charges to a U.S. limited liability company that was a wholly owned subsidiary of a German corporation. The software did not function properly and generated erroneous reports of charge
> Mrs. Clark’s Foods (Clark’s) was an Iowa corporation engaged in the business of labeling and distributing juices. Clark’s purchased apple juice concentrate in April 2011 from International Suntrade, Inc. (Suntrade), and Miller & Smith Foods, Inc. (Miller
> If Judge Hand had written his decision in December 1941, at the beginning of World War II rather than in 1945, at its successful end, would he have handed down a judgment against the national aluminum company of a principal ally of the United States? Sho
> In May 2009, Hanwha submitted a bid for the purchase of 1,000 metric tons of the petrochemical Toluene at $640 per metric ton. Cedar accepted the bid and followed up its acceptance by sending Hanwha, via e-mail, a signed contract sheet and a document set
> Shantou Real Lingerie Manufacturing Company (Shantou) is incorporated in China. Shantou manufactures and exports garments to the United States. Native Group International, Inc. (Native), is a corporation organized under the laws of New York engaged in th
> Bende had a contract to sell boots to the government of Ghana for $158,500. Bende promised to deliver the boots “as soon as possible.” Bende then contracted with Kiffe, who agreed to make the boots in Korea and to deliver them in Ghana within 60 to 90 da
> Lucent Technologies International, Inc., subcontracted with a Saudi Arabian company, National Group, for work that Lucent was doing as part of a $4 billion telecommunications project for the Saudi government. National Group sued Lucent for damages for te
> Michael Ghannoum, a resident of Texas, was hired to work as a pilot for Qatar Airways. Qatar Airways is entirely owned by the government of Qatar. Ghannoum’s employment was based in Qatar, where he resided under a Qatari resident permit. Qatar Airways’ c
> Seung was a passenger on the M/S Paul Gauguin cruise ship owned by Regent Seven Seas Cruises. The cruise ship operated exclusively in French Polynesia. Seung’s ticket contained a forum selection clause that designated Paris, France, as the sole location
> Why do so many litigants, “like moths to a flame,” want to litigate in the United States?
> Nicastro was severely injured at his workplace in New Jersey by an industrial metal shearing machine manufactured by J. McIntyre Machinery, Ltd., an English company. Nicastro filed a product liability claim against McIntyre in New Jersey state court. M
> Two teenagers residing in North Carolina were fatally injured when the bus upon which they were riding overturned on a roadway outside of Paris, France. The parents of the decedents brought a lawsuit in North Carolina state court against Goodyear Tire an
> Naoko Ohno, a Japanese citizen, obtained a $1.2 million tort judgment against the Saints of Glory Church, a California corporation, and its pastor Yuko Yasuma, a California resident, in Tokyo District Court. The basis for the judgment was a transfer of m
> In Alcoa, Judge Hand points out that even agreements to restrict trade only in Europe and South America would have anticompetitive repercussions in the United States. What additional element did he require before giving U.S. antitrust law extraterritoria
> Explain the concepts of jurisdiction and minimum contacts. What application do they have in international disputes?
> Two cases in this chapter, Transatlantic Financing and Bernina Distributors, involved very different facts but similar issues of law. What legal issues do they have in common? In each case there is some unexpected “supervening event” that interfered with
> What ideas do you have for setting up an accountability system to ensure compliance with codes of conduct and other ethical and social responsibility standards for business?
> Cometals, a New York commodities trading corporation, purchased 2,000 tons of Kenyan red beans from Tarbert Trading, an English commodities trading company. The beans would be shipped from a warehouse in Rotterdam, the Netherlands. Cometals purchased the
> Internationalists often refer to the “unification” or “harmonization”of international law. What do you think these terms mean? What factors have influenced the harmonization of international business law? In what ways do you think IBL is more “national”
> The Submitter, North Coast Steelhead Alliance (NCSA), filed a submission on enforcement matters pursuant to Articles 14 and 15 of the North American Agreement on Environmental Cooperation (NAAEC or Agreement) with the Secretariat of the North American Co
> The plaintiff, an owner of real estate in Austria near the former Czechoslovakia, brought action in Austrian courts seeking to prevent the construction of a nuclear power plant 115 kilometers away in Czechoslovakia. The plaintiff alleged that the plant h
> To protect endangered sea turtle populations from further decline by reducing their incidental mortality in commercial shrimp trawling, U.S. commercial shrimp trawlers are required to use Turtle Excluder Devices (TEDs) approved in accordance with standar
> Chrysotile asbestos poses significant risks to human health. It is generally recognized to cause lung cancer and other respiratory diseases. Nonetheless, because it has such favorable qualities as resistance to high temperatures, it has been used widely
> Article VIII of the International Convention for the Regulation of Whaling imposes duties on the nations of the Convention with respect to the issuance of special whaling permits “for purposes of scientific research.” Japan issued a series of such specia
> The Republic of Costa Rica began proceedings against the Republic of Nicaragua for its alleged military invasion and occupation of Costa Rican territory, during which it dug a channel in and dredged the San Juan River. Among other things, Costa Rica argu
> On May 4, 2006, Argentina brought a complaint before the ICJ against Uruguay. Argentina alleged that Uruguay had breached obligations to provide notice to and consult with the Administrative Commission for the River Uruguay (CARU) before authorizing the
> Government Circular, two civil servants may decide to equally share one full-time job so that the benefits are shared equally by both persons concerned and the costs of the post to the administration remain the same. The two civil servants retain the rig
> Ms. Jany and Ms. Szepietowska, Polish nationals, and Ms. Padevetova, Ms. Zacalova, Ms. Hrubcinova, and Ms. Uberlackerova, Czech nationals, had established their residence in the Netherlands at various dates between May 1993 and October 1996, working as w
> The government of Nigeria awarded a military contract to W. S. Kirkpatrick & Co. The losing bidder, Environmental Tectronics Corporation (ETC), investigated the circumstances under which the contract had been awarded and learned that the winner had bribe
> You overhear someone say, “International law does not exist.” What do they mean? What evidence can you provide to persuade them that they are mistaken?
> RFE/RL, Inc., is a Delaware nonprofit corporation that is funded but not controlled by the federal government. It is best known for its broadcast services, Radio Free Europe and Radio Liberty. RFE/RL’s principal place of business is Munich, Germany. In 1
> Plaintiff Shayna Brown Duncan, an African–American woman, was hired as a “Senior Secretary/Administration Assistant” by American International Company, Limited (AIC), a Bermudan corporation located in Bermuda. Duncan was a U.S. citizen. She alleged that
> The respondents are two Delaware corporations: Arabian American Oil Company (Aramco) and its subsidiary, Aramco Service Company (ASC). Aramco’s principal place of business is Dhahran, Saudi Arabia, and it is licensed to do business in Texas. In 1979, Bo
> Like all Japanese firms with more than ten employees, Kochi Hoso, a radio broadcasting company, was required to maintain rules of employment that specified the conditions under which an employee could be discharged. Kochi Hoso clearly specified that tard
> Two Russian film studios [the studios] granted rights to produce and distribute DVD versions of their films to multiple licensees. Each licensee received different limited exclusive rights. Krupny Plan, which could distribute the films only in the origin
> Petitioner Compaq Computer Corporation manufactures personal computers (PCs). Printed circuit assemblies (PCAs) are the electronic circuitry inside a PC’s central processing unit that allows the PC to operate. Compaq set up a PCA manufacturing subsidiary
> Plaintiff Bank of America conducted a general banking business in the Kingdom of Thailand, the Republic of the Philippines, and the Republic of Argentina. With respect to this business, Bank of America paid the three jurisdictions various types of taxes.
> Carol Sachs as a resident of California who, in March 2007, purchased a Eurail pass over the Internet from The Rail Pass Experts, a Massachusetts-based travel agent. Eurail passes allow their holders unlimited passage for a set period of time on particip
> The claimants were foreign entities that had invested in the 1999 expansion of an airport near Budapest, Hungary. The airport was owned by the Government of Hungary. In 2002, the government enacted a decree that resulted in the privatization of the airpo
> The National Thermal Power Corporation of India (NTPC) entered into a contract with The Singer Company (Singer), a British concern, to supply equipment and erect certain projects in India. A dispute arose and Singer sought arbitration under Internation
> What types of issues lend themselves to international solutions through international law?
> On May 3, 1978, a subsidiary of INA Corporation (INA), INA International Insurance Company, Ltd. (INA International), acquired 20 percent of the shares of Bimek Shargh (Shargh), an Iranian insurance company. The proposed investment by INA International w
> CSU sued Xerox, claiming that the copier manufacturer’s refusal to sell patented parts and copyrighted manuals and to license copyrighted software violated antitrust laws. The district court granted summary judgment in favor of the copier manufacturer, a
> A French cosmetic company with a business in the United States sold that business to a U.S. company, A. Bourjois & Co., along with its trademark for face powder. A. Bourjois reregistered the trademark and continued with the face powder business, using th
> An Australian company sought to sell sparkling wine in New Zealand. The wine was made in Australia from grapes grown in Australia, but was packaged in bottles that included the word “champagne” on the label. The Comite Interprofessionel du Vin de Champag
> Television Broadcasts Limited (TVB), based in Hong Kong, owned a Chinese language miniseries called Twin of Brothers. Its subsidiary, TVBO, owned the copyright in each episode in all countries except Hong Kong. TVB and affiliated companies filed a compla
> The complainant was Mobile Communication Service, Inc., which did business under the name Mobilcom. The domain name in question was “mobilcom.com,” which had been registered by respondent WebReg, RN. Mobilcom contended that the domain name consisted enti
