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Part Ⅰ Introduction 3

Chapter 1 The Legal Environment of International Business 3

1.1 International Business and Globalization 3

1.2 History of International Business Law 4

1.3 Sources of International Business Law 8

A．International Treaties and Conventions 8

B．International Business Customs and Usages 9

C．National Laws 10

D．Other Sources 10

1.4 Comparison of Legal Systems 11

A．The Romano-Germanic Civil Law System 11

B．The Anglo-American Common Law System 12

1.5 The Role of International Organizations in International Business 12

Exhibit 1-1:Outline of the Uruguay Round Final Act 16

Exhibit 1-2:The Structure of the WTO 16

Part Ⅱ Law of Business Organizations 21

Chapter 2 Sole Proprietorships 21

2.1 Advantages and Disadvantages of Sole Proprietorship 22

2.2 The Law Governing Sole Proprietorships 22

Chapter 3 Partnerships 25

3.1 Forms of Partnerships 25

3.2 Partnership Formation 26

3.3 Partnership Operation 31

Exhibit 3-1:A Sample Partnership Agreement 26

Case 3-1:Helpinstill V.Regions Bank 31

3.4 Partnership Termination 33

Chapter 4 Corporations 35

4.1 Nature of Corporations 35

4.2 Classification of Corporations 36

4.3 Corporate Formation 37

4.4 Disregarding the Corporate Entity 39

4.5 Corporate Management 44

A．Corporate Management Institutions 45

B．Corporate Management Personnel 47

4.6 Merger,Consolidation and Dissolution of Corporations 49

Case 4-1:Salomon V.Salomon＆Co,Ltd 41

Case 4-2:Hoskins Chevrolet,INC.V.Hochberg（1998） 42

Part Ⅲ Law of International Sale of Goods 55

Chapter 5 Contract for International Sale of Goods（Ⅰ） 55

5.1 What Is a Contract? 55

5.2 Classification of Contracts 57

5.3 Essential Elements of a Valid Contract 58

5.4 Rules Governing International Sale of Goods 62

A．United Nations Convention on Contracts for the International Sale of Goods 62

B．National Laws 63

C．Principles of International Commercial Contracts 65

D．International Customs and Usages:Incoterms 66

Exhibit 5-1:Division of Incoterms 2000（Mode ofTransport） 68

Exhibit 5-2:Division of Incoterms 2000 （Duties Imposed on the Seller） 68

Exhibit 5-3:Division of Incoterms 2010（Mode of Transport） 69

Chapter 6 Contract for International Sale of Goods（Ⅱ） 75

6.1 The Sphere of Application of the CISG 75

A．Three Requirements for the Application of the CISG 75

B．Choice of Law Clauses 77

C．Sales Excluded from the CISG 80

D．Contractual Issues Excluded from the CISG 82

6.2 General Provisions for Interpretation of the CISG 83

6.3 Contract Formation 84

A．The Offer 85

B．The Acceptance 86

C．Battle of the Forms 87

6.4 Seller's Obligations 88

A．Obligations of Delivery 88

B．Obligations of Quality of the Goods 90

C．Obligations of Property Issues 92

6.5 Buyer's Obligations 93

A．Obligations of Payment 93

B．Obligations of Inspection and Notice of Defects 93

6.6 Risk of Loss 95

6.7 Excused Performance 96

6.8 Remedies for Breach of Contract 97

A．Suspension of Performance 97

B．Avoidance of aContract 98

C．Damages 100

D．Specific Performance 103

E．Other Remedies Available under the CISG 105

Case 6-1:American Biophysics Corp.V.Dubois Marine Specialties 78

Case 6-2:Hadley V.Baxendale（1854） 101

Chapter 7 International Carriage of Goods 109

7.1 Carriage of Goods by Sea 110

A．Bills of Lading 110

Fundamentals of Bills of Lading 110

International Conventions Governing Bills of Lading 112

Carriers Duties and Immunitiesunder a Bill of Lading 114

Other Questions 116

B．Charterparties 116

7.2 Carriage of Goods by Air 117

A．The Warsaw Convention 1929 118

B．The Montreal Convention 1999 118

7.3 Carriage of Goods by Road and Rail 119

7.4 Multimodal Carriage of Goods 121

7.5 Marine Cargo Insurance 121

A．Types of Losses 121

B．Types of Marine Insurance Policies 122

C．Types of Coverage 123

Chapter 8 Payment in International Sale of Goods 125

8.1 Modes of International Payment 125

8.2 Fundamentals of Negotiable Instruments 128

8.3 Bill of Exchange 130

A．Laws Governing the Bill of Exchange 130

B．Brief Requirements of the Bill of Exchange 131

C．Negotiation of the Bill of Exchange 132

8.4 Documentary Letters of Credit 133

A．Overview 133

B．The Governing Rules:UCP 600 136

C．Basic Legal Principles 136

The Principle of Independence 137

The Rule of Strict Compliance 140

8.5 Standby Letters of Credit 143

Exhibit 8-1 A Sample of Draft 129

Exhibit 8-2 A Sample of Check 130

Exhibit 8-3 A Sample of Promissory Note 130

Case 8-1:Sztejn V.Henry Schroder Banking Corporation 137

Part Ⅳ Law of International Intellectual Property Rights 149

Chapter 9 International Transfer of Intellectual Property 149

9.1 Fundamentals of Intellectual Property Rights 149

A．Copyrights 149

B．Patents 151

C．Trademarks 153

D．Know-how or Trade Secrets 154

9.2 International Intellectual Property Organizations and Treaties 154

9.3 Regulations on International Licensing 157

A．Typical Terms in International Licensing Agreements 158

B．Restrictive Business Practices in International Licensing 159

Price Fixing 160

Non-competition Clauses 160

Challenges to Validity 160

Tying Clauses 161

Grant-Back Provisions 161

C．Rules Regulating the Anti-competitive Aspects of International Licensing 162

D．Compulsory Licenses 164

9.4 Regulations of International Franchising 164

Case 9-1:Dayan V.McDonald's Corp 166

Part Ⅴ Law of International Commercial Disputes Resolution 171

Chapter 10 Settlement of International Commercial Disputes 171

10.1 Methods of International Commercial Dispute Settlement 171

10.2 Settlement of Commercial Disputes through Arbitration 173

A．Overview of Arbitration and International Commercial Arbitration 173

Understanding Arbitration and International Commercial Arbitration 173

Types of International Commercial Arbitration 174

Advantages of International Commercial Arbitration 175

Disadvantages of International Commercial Arbitration 177

B．Arbitration Clauses 177

Form of Arbitration Clauses 178

Validity of Arbitration Clauses 178

Drafting Arbitration Clauses 180

C．International Commercial Arbitration Procedure 181

Appointment of Arbitrators 181

Arbitration Proceedings 182

D．Enforcement of Arbitral Awards:New York Convention 182

E．Enforcement of Foreign Arbitral Award in the People's Republic of China 183

10.3 Settlement of Commercial Disputes Involving States through Arbitration 184

A．International Center for the Settlement of Investment Disputes（ICSID） 184

B．Dispute Settlement in WTO 185

10.4 Settlement of Commercial Disputes through Litigation 186

A．Jurisdiction 186

B．Choosing the Governing Law 187

C．Proving Foreign Law 187

D．Recognizing and Enforcing Foreign Judgment 188

Case 10-1:Scherk V.Alberto-Culver Co 178

List of Legal Terms 189

References 202