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Chapter 1 The Legal Environment of International Trade 1

1.1 Globalization and International Trade 2

1.2 Economic Theories Underlying International Trade 3

1.3 History of International Trade Law 8

1.4 Sources of International Trade Law 10

A．International Treaties and Conventions 11

B．International Trade Customs and Usages 11

C．National Law 12

D．Other Sources 13

1.5　Comparison of Legal Systems 14

A．The Romano-Germanic Civil Law System 14

B．The Anglo-American Common Law System 15

1.6　The Role of International Organizations in International Trade 15

Chapter Summary 21

Chapter Questions 21

Chapter 2　International Sale of Goods(Ⅰ) 24

2.1　What Is Contract? 25

2.2　Classification of Contract 26

2.3　Essential Elements of a Valid Contract 28

2.4　Sources of Rules Governing International Sale of Goods 32

A．United Nations Convention on Contracts for the International Sale of Goods 32

B．National Law 34

C．Principles of International Commercial Contracts 36

D．International Customs and Usages:Incoterms 38

Chapter Summary 44

Chapter Questions 45

Chapter 3　International Sale of Goods(Ⅱ) 47

3.1　The Sphere of Application of CISG 48

A．Three Requirements for the Application of CISG 48

B．Choice of Law Clauses 51

C．Sales Excluded from CISG 54

D．Contractual Issues Excluded from CISG 57

3.2　General Provisions for Interpretation of CISG 58

3.3　Contract Formation 60

A．The Offer 61

B．The Acceptance 62

C．Battle of the Forms 64

3.4　Seller's Obligations 66

A．Obligations of Delivery 66

B．Obligations of Quality of the Goods 68

C．Obligations of Property Issues 70

3.5　Buyer's Obligations 71

A．Obligations of Payment 71

B．Obligations of Inspection and Notice of Defects 72

3.6　Risk of Loss 74

3.7　Excused Performance 75

3.8　Remedies for Breach of Contract 77

A．Suspension of Performance 77

B．Avoidance of a Contract 79

C．Damages 82

D．Specific Performance 86

E．Other Remedies Available under CISG 88

Chapter Summary 89

Chapter Questions 91

Chapter 4　International Carriage of Goods 96

4.1　Carriage of Goods by Sea 98

A．Bills of Lading 98

B．Charterparties 109

4.2 Carriage of Goods by Air 110

A．The Warsaw Convention 1929 110

B．The Montreal Convention 1999 111

4.3　Carriage of Goods by Road and Rail 112

4.4　Multimodal Carriage of Goods 114

4.5　Marine Cargo Insurance 114

A．Types of Losses 115

B．Types of Marine Insurance Policies 116

C．Types of Coverage 117

Chapter Summary 117

Chapter Questions 118

Chapter 5　Payment in International Trade 121

5.1　Modes of International Payment 122

5.2　Fundamentals of Negotiable Instruments 125

5.3　The Bill of Exchange 128

A．Laws Governing the Bill of Exchange 128

B．Brief Requirements of the Bill of Exchange 129

C．Negotiation of the Bill of Exchange 129

5.4　Documentary Letters of Credit 132

A．Overview 132

B．The Governing Rules:UCP 600 135

C．Basic Legal Principles 136

5.5　Standby Letters of Credit 144

Chapter Summary 146

Chapter Questions 147

Chapter 6　The International Transfer of Intellectual Property 150

6.1　Fundamentals of Intellectual Property Rights 151

A．Copyrights 151

B．Patents 153

C．Trademarks 155

D．Know-how or Trade Secrets 156

6.2　International Intellectual Property Organizations and Treaties 157

6.3　Regulations on International Licensing 160

A．Rules Regulating the Anticompetitive Aspects of International Licensing 160

B．Restrictive Business Practices 162

C．Compulsory Licenses 165

6.4　Regulations of International Franchising 167

Chapter Summary 169

Chapter Questions 170

Chapter 7　International Electronic Commerce 173

7.1　Introduction 174

7.2　Private Contractual Measures Enabling Electronic Commerce 175

7.3 UNCITRAL Model Law on Electronic Commerce 176

A．In General 176

B．Non-Discrimination Provisions 176

C．Contract Formation Provisions 177

7.4 China's Legislation on Electronic Commerce 178

A．Development of Electronic Commerce in China 178

B．Electronic Signature Law of the People's Republic of China 179

7.5　European Union's Law on Electronic Commerce 181

A．Electronic Signature Directive 181

B．Personal Data Protection Directive 182

7.6　United States'Federal Law—E-SIGN Act 182

Chapter Summary 183

Chapter Questions 184

Chapter 8　WTO Law 186

8.1　Historical Development of GATT Law and WTO Law 187

A．The Birth of the General Agreement on Tariffs and Trade(GATT) 187

B．Evolution of the GATT and GATT Law 188

C．The Uruguay Round 189

8.2　Overview of the WTO 191

A．What Is the WTO? 191

B．Membership of the WTO 191

C．Structure of the WTO 192

8.3　WTO Agreements 194

A．WTO Dispute Settlement 194

B．Multilateral Agreements on Trade in Goods 200

C．The General Agreement on Trade in Services(GATS) 209

D．The Agreement on Trade-related Aspects of Intellectual Property Rights(TRIPS Agreement) 212

8.4　China and the WTO 213

A．Non-market Economy Status 214

B．Specific Safeguard Mechanism for Products of Chinese Origin 215

C．Specific Safeguard Mechanism for Trade in Textiles and Clothing Products 217

Chapter Summary 219

Chapter Questions 219

Chapter 9　National Regulations on Imports and Exports 223

9.1 Introduction 224

9.2　China's Regulations on Imports and Exports 224

A．Overview of China's Regulations on Imports and Exports 224

B．The Fundamental Principles and Foreign Trade Dealers 225

C．Regulations on Imports and Exports of Goods and Technologies 226

D．Regulations on Imports and Exports of Services 228

E．Protection of Trade-related Aspects of Intellectual Property Rights 230

F．Maintenance of Foreign Trade Order 230

G．Foreign Trade Investigation and Foreign Trade Remedies 231

H．Promotion of Foreign Trade 231

9.3 United States Import and Export Controls 232

A．U.S. Import Restraints 233

B．Governance of Exports 235

C．General Prohibitions 236

D．U.S.Section 301 Proceedings:Basic Section 301,Special 301,Telecommunications 301 and Super 301 238

Chapter Summary 240

Chapter Questions 241

Chapter 10 Settlement of International Commercial Disputes 243

10.1 Methods of International Commercial Dispute Settlement 244

10.2 Settlement of Commercial Disputes through Arbitration 246

A．Overview of Arbitration and International Commercial Arbitration 246

B．Arbitration Clauses 251

C．Arbitration Procedure 256

D．Enforcement of Arbitral Awards:New York Convention 257

10.3 Settlement of Commercial Disputes Involving States through Arbitration 260

A．International Center for the Settlement of Investment Disputes(ICSID) 260

B．Dispute Settlement in the WTO 261

10.4 Settlement of Commercial Disputes through Litigation 261

A．Jurisdiction 262

B．Choosing the Governing Law 263

C．Proving Foreign Law 263

D．Recognizing and Enforcing Foreign Judgment 264

Chapter Summary 264

Chapter Questions 265

Appendix Ⅰ United Nations Convention on Contracts for the International Sale of Goods 267

Appendix Ⅱ Uniform Customs and Practice for Documentary Credits UCP 600 297

List of Legal Terms 322

References 342