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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 5

1.3 Sources ofInternational Business Law 9

A．International Treaties and Conventions 9

B．International Business Customs and Usages 10

C．National Laws 11

D．Other Sources 11

1.4 Comparison of Legal Systems 12

A．The Romano-Germanic Civil Law System 12

B．The Anglo-American Common Law System 13

1.5 The Role of International Organizations in International Business 14

Exhibit 1-1:Outline ofthe Uruguay Round Final Act 6

Exhibit 1-2:The structure ofthe WTO 18

Part Ⅱ Law of Business Organizations 23

Chapter2 Sole Proprietorships 23

2.1 Advantages and Disadvantages of Sole Proprietorship 24

2.2 The Law Governing Sole Proprietorships 24

Chapter 3 Partnerships 27

3.1 Forms ofPartnerships 27

3.2 Partnership Formation 28

3.3 Partnership Operation 34

3.4 Partnership Termination 36

Exhibit 3-1:A sample partnership agreement 29

Case 3-1:Helpinstill V. Regions Bank 34

Chapter 4 Corporations 39

4.1 Nature ofCorporations 39

4.2 Classification ofCorporations 40

4.3 Corporate Formation 41

4.4 Disregarding the Corporate Entity 44

4.5 Corporate Management 49

A．Corporate Management Institutions 50

B．Corporate Management Personnel 52

4.6 Merger,Consolidation and Dissolution of Corporations 55

Case4-1:Salomon v Salomon＆Co,Ltd 45

Case4-2:Hoskins Chevrolet,INC.V. Hochberg(1998) 47

Part Ⅲ Law of International Sale of Goods 63

Chapter 5 Contract for International Sale of Goods(Ⅰ) 63

5.1 What is a Contract? 63

5.2 Classification ofContracts 65

5.3 Essential Elements ofa Valid Contract 67

5.4 Rules Governing International Sale ofGoods 71

A．United Nations Convention on Contracts for the International Sale ofGoods 71

B．National Laws 72

C．Principles of International Commercial Contracts 74

D．International Customs and Usages:Incoterms 76

Exhibit 5-1:Division ofIncoterms 2000(Mode ofTransport) 78

Exhibit 5-2:Division ofIncoterms 2000(Duties Imposed on the Seller) 78

Exhibit 5-3:Division ofIncoterms 2010(Modes ofTransport) 79

Chapter 6 Contract for International Sale of Goods(Ⅱ) 85

6.1 The Sphere ofApplication ofCISG 86

A．Three Requirements for the Application of CISG 86

B．Choice ofLaw Clauses 87

C．Sales Excluded from CISG 90

D．Contractual Issues Excluded from CISG 93

6.2 General Provisions for Interpretation of CISG 94

6.3 Contract Formation 96

A．The Offer 97

B．The Acceptance 98

C．Battle of the Forms 99

6.4 Seller's Obligations 101

A．Obligations of Delivery 101

B．Obligations of Quality of the Goods 103

C．Obligations of Property Issues 105

6.5 Buyer's Obligations 106

A．Obligations of Payment 106

B．Obligations of Inspection and Notice of Defects 107

6.6 Risk of Loss 108

6.7 Excused Performance 109

6.8 Remedies for Breach of Contract 111

A．Suspension of Performance 111

B．Avoidance of a Contract 112

C．Damages 114

D．Specific Performance 118

E．Other Remedies Available under CISG 120

Case 6-1:American Biophysics Corp.v.Dubois Marine Specialties 88

Case 6-2:Hadley v. Baxendale (1854) 115

Chapter 7 International Carriage of Goods 125

7.1 Carriage of Goods by Sea 126

A．Bills of Lading 126

Fundamentals of Bills of Lading 126

International Conventions Governing Bills of Lading 129

Carriers Duties and Immunities Under a Bill of Lading 131

Other Questions 133

B．Charterparties 133

7.2 Carriage of Goods by Air 134

A．The Warsaw Convention 1929 135

B．The Montreal Convention 1999 136

7.3 Carriage of Goods by Road and Rail 137

7.4 Multimodal Carriage of Goods 138

7.5 Marine Cargo Insurance 139

A．Types of Losses 139

B．Types of Marine Insurance Policies 140

C．Types of Coverage 141

Chapter 8 Payment in International Sale of Goods 143

8.1 Modes of International Payment 143

8.2 Fundamentals of Negotiable Instruments 146

8.3 The Bill of Exchange 149

A．Laws Governing the Bill of Exchange 149

B．BriefRequirements of the Bill of Exchange 150

C．Negotiation of the Bill of Exchange 151

8.4 Documentary Letters of Credit 152

A．Overview 152

B．The Governing Rules:UCP 600 155

C．Basic Legal Principles 156

The Principle of Independence 156

The Rule of Strict Compliance 160

8.5 Standby Letters of Credit 163

Exhibit 8-1:A Sample of Draft 148

Exhibit 8-2:A Sample of Check 148

Exhibit 8-3:A Sample of Promissory Note 149

Case 8-1:Sztejn V.Henry Schroder Banking Corporation 157

Part Ⅳ Law of International Intellectual Property Rights 169

Chapter 9 International Transfer of Intellectual Property 169

9.1 Fundamentals ofIntellectual Property Rights 169

A．Copyrights 170

B．Patents 171

C．Trademarks 173

D．Know-how or Trade Secrets 174

9.2 International Intellectual Property Organizations and Treaties 175

9.3 Regulations on International Licensing 178

A．Typical Terms in International Licensing Agreements 179

B．Restrictive Business Practices in International Licensing 181

Price Fixing 181

Non-competition Clauses 182

Challenges to Validity 182

Tying Clauses 183

Grant-Back Provisions 183

C．Rules Regulating the Anticompetitive Aspects of International Licensing 184

D．Compulsory Licenses 186

9.4 Regulations of International Franchising 187

Case 9-1:Dayan V. McDonalds Corp 188

Part Ⅴ Law of International Commercial Disputes Resolution 193

Chapter 10 Settlement of International Commercial Disputes 193

10.1 Methods ofInternational Commercial Dispute Settlement 193

10.2 Settlement of Commercial Disputes through Arbitration 195

A．Overview of Arbitration and International Commercial Arbitration 195

Understanding Arbitration and International Commercial Arbitration 195

Types ofintemational Commercial Arbitration 197

Advantages ofInternational CommercialArbitration 198

Disadvantages ofInternational Commercial Arbitration 199

B．International Commercial/Arbitration Clauses 200

Form ofArbitration Clauses 200

Validity ofArbitration Clauses 201

Drafting Arbitration Clauses 203

C．International Commercial Arbitration Procedure 204

Appointment ofArbitrators 205

Arbitration Proceedings 205

D．Enforcement ofArbitral awards:New York Convention 206

E．Enforcement ofForeign Arbitral Award in the People's Republic of China 207

10.3 Settlement ofCommercial Disputes Involving States through Arbitration 209

A．International Center for the Settlement of Investment Disputes(ICSID） 209

B．Dispute Settlement in WTO 210

10.4 Settlement ofCommercial Disputes through Litigation 210

A．Jurisdiction 211

B．Choosing the Governing Law 211

C．Proving Foreign Law 212

D．Recognizing and Enforcing Foreign Judgment 213

Case 10-1:Scherk v.Alberto-Culver Co 201

List of Legal Terms 215

References 230