* * * In December 1954, the League of Arab States called for an economic boycott of Israel. Under the “General Principles” worked out by the Arab states, a firm could be blacklisted if it traded with Israel. The plaintiff manufactures internal combustion engines. Its products are often used as component parts. Briggs had been blacklisted because of dealings with Israel. In May of 1977, Briggs received a letter from its Syrian distributor telling it that it had been blacklisted and refused an import license. He also received a questionnaire, which was translated as follows: 1. Has the company now or in the past had main or branch factories in Israel? 2. Has the company now or in the past had general offices in Israel for its regional or international works? 3. Has it granted now or in the past the right of utilizing its name or trademarks or patents to persons or establishments or Israeli works inside or outside Israel? 4. Does it share in or own now or in the past share in Israeli works or establishments inside or outside Israel? 5. Does it now or did it offer in the past any technical assistance to any Israeli work or establishment? 6. Does it represent now or did it represent in the past any Israeli establishment or work inside or outside Israel? 7. What are the companies that it shares in or with, their nationalities, and the size or rate of these shares? Briggs answered “no” to the questions, but did not have the questionnaire authenticated because of the new antiboycott regulations. The blacklisting continued, but subsequently the company was removed from the blacklist. Briggs was unquestionably injured economically by the blacklisting. Briggs brought an action against the officials charged with enforcing the act and regulations, claiming that they violated the First, Fifth, and Ninth Amendments to the U.S. Constitution. DISTRICT JUDGE GORDON The Commerce Department regulations are consistent with this express policy to require persons to refuse to furnish information which would have the effect of furthering a boycott against a nation friendly to the United States. Thus the regulations are not inconsistent with the policies of the act. I also reject Briggs’ argument that the regulations permit a firm to supply information in the absence of a questionnaire that it cannot supply if it gets one. Example (ix) following the intent regulation reads: U.S. company A is on boycotting country Y’s blacklist. In an attempt to secure its removal from the blacklist, A wishes to supply to Y information which demonstrates that A does at least as much business in Y and other countries engaged in a boycott of X as it does in X. A intends to continue its business in X undiminished and in fact is exploring and intends to continue exploring an expansion of its activities in X without regard to Y’s boycott. A may furnish the information, because in doing so it has no intent to comply with, further, or support Y’s………………… Required: 1. What is the purpose of the antiboycott regulations? 2. On what basis did the company challenge the act and regulations? 3. Should a company respond to a questionnaire like the one Briggs received here? What action should it take?
> 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
> After genetically engineering a bacterium capable of breaking down crude oil, Ananda Chakrabarty sought to patent his creation under Title 35 U.S. Code Section 101, which states that “[w]hoever invents or discovers any new and useful process, machine, ma
> In August 2012, a jury awarded Apple more than $1 billion in damages for infringement against Samsung. Samsung filed a motion with the court for reduction of the jury award and for a new trial, and Apple filed a motion for supplemental damages. JUDGE L
> The defendant purchased sewing machines from a Swiss manufacturer in Swiss francs. The machines were imported into the United States for sale to distributors. The contract with the distributor in this case allowed the importer to pass on cost increases t
> … the Tribunal recalls that the Government of Kenya, on 27 April 1989, concluded an agreement with a company, called the “House of Perfume” for the construction, maintenance, and operation of duty-free complexes at Nairobi and Mombasa Airports. This agre
> Assume that someone in a foreign country poisons a shipment of pharmaceuticals destined for the United States, resulting in death of an American consumer in violation of 18 U.S.C.1365 (tampering with a consumer product). Under what circumstances could th
> Nissan operated a foreign trade zone subzone at its automotive manufacturing and assembly plant located in Smyrna, Tennessee. Nissan imported production machinery for use in the subzone consisting of industrial robots, automated conveyor systems, and a c
> Messrs. Esquenazi and Rodriguez co-owned Terra Telecommunications Corp. (Terra), a Florida company that purchased phone time from foreign vendors and resold the minutes to customers in the United States. Mr. Esquenazi, Terra’s majority owner, served as P
> In Italy, winnings from casinos situated in Italy were exempt from income taxation to the extent that their taxation was included in an entertainment tax. However, winnings from casinos situated outside of Italy were subject to income tax. As a result, o
> The defendant, who made and sold a medical preparation called the “Carbolic Smoke Ball,” inserted the following advertisement in the Pall Mall Gazette on November 13, 1891: £100 reward will be paid by the Carbolic Smoke Ball Company to any person who co
> The Paraguayan government enacted a law that specifically protects Paraguayan representatives of foreign companies. Among other things, the law requires a foreign company to make an extraordinarily large payment to the Paraguayan representative if the re
> J. Wu entered three shipments of T-shirts purchased from Hui, who claimed that he operated a factory in the Dominican Republic. Hui furnished information necessary for the importer’s broker to prepare the import documents and to obtain a permit for entry
> Two Italian nationals obtained university law degrees in Italy and Spain from Italian and Spanish institutions. Both nationals subsequently registered as attorneys in the Bar of Santa Cruz de Tenerife in Spain. Three months later, they submitted applicat
> Article 2(1) of Portuguese Law No. 40/2003 provided that “the affixing of tinted film to the windows of passenger or goods vehicles shall be prohibited with the exception of lawful stickers and dark, non-reflective film to the goods compartment of goods
> Decree No. 507 of the Italian Ministry of Cultural Assets and Natural Sites regulated tickets for admission to monuments, museums, galleries, archaeological digs, parks and gardens classified as “national monuments.” Article 4(3) of the Decree provided f
> Mousavi immigrated to the United States from Iran and became a naturalized citizen in 1999. He operated two businesses, one installing television satellite systems and the other organizing travel packages to Mecca for pilgrimages. During a 2006 audit of
> The defendants conspired to transport 191 Ecuadorian nationals into the United States illegally aboard a 54-foot fishing vessel. A U.S. Navy helicopter sighted the overcrowded vessel off the Guatemalan coast and saw that it had no lights and flew no flag
> Simon Kirk, a veterinarian and citizen of Canada, sought to obtain a license to practice veterinary medicine from the State of New York. Kirk was neither a U.S. citizen nor a permanent resident alien. However, he obtained an entry visa pursuant to NAFTA
> Defendants were charged with illegally exporting high technology equipment without a license. The indictment alleged that their application for a license had been assigned an application number but was then returned as inadequate. Instead of resubmitting
> Defendant is a Chinese citizen who worked as an engineer in Beijing developing photoelectric technologies. Defendant’s friend and accomplice, Chao, was a U.S. citizen who owned a printing business in California. On defendant’s instructions, Chao purchase
> Plaintiff attempted to enter steel products at the Port of Seattle. These products consisted of unpainted steel sheets that had originated in Japan but had been hot-dip galvanized in New Zealand. Plaintiff’s entry documents identified New Zealand as the
> Plaintiff, Better Home Plastics Corp., imported shower curtain sets consisting of an outer textile curtain, an inner plastic liner, and plastic hooks. The liner prevented water from escaping and was color coordinated to match the curtain. The curtain was
> Zeiss imported ZMS 319 microscopes, stands, and accessories, including a camera—all specially tailored for neurosurgical use. Customs classified the ZMS 319 under Heading 9011 for “stereoscopic compound microscope with a means for photographing the image
> Otter Products LLC imported protective cases for smartphones, branded as the “Otterbox Commuter” and “Defender” series. The cases have a clear plastic screen cover, rigid outer plastic shell that fits snuggly, and a flexible silicone component. A case do
> Shaver, a barge company, contracted with Weyerhauser, the shipper, to transport caustic soda to a buyer. Shaver arranged for marine cargo insurance with Travelers. Several different types of coverage were discussed. Shaver decided on “free from particula
> During the 1960s and 1970s, the European steel industry was near financial collapse. With the support of labor groups, the largest firms were kept alive with government money, low-interest loans, and equity investments from European governments. Many mil
> Kiobel and other environmental activists were arrested, tortured, and executed by the Nigerian military in 1995. They had been protesting Shell’s oil exploration in the Ogoni region of Nigeria. A lawsuit was brought by Kobel’s widow and others under the
> Rhodia Pharma Solutions is one of the world’s leading manufacturers of specialty chemicals, including acetyl-salicylic acid (bulk aspirin). With corporate headquarters in France, it has about 25,000 employees in offices and manufacturing plants in the Un
> Pesquera Mares Australes, a Chilean salmon exporter, was accused of dumping salmon in the U.S. market at less than fair value. An AD duty petition was filed in 1997 by the Coalition for Fair Atlantic Salmon Trade. The U.S. Department of Commerce (ITA) co
> The United States has long sought ways to reduce smoking by children. In 2009 the United States enacted the Family Smoking Prevention and Tobacco Control Act [the Act] that prohibited the import or sale of cigarettes with any flavor, herb, or spice, incl
> Argentina conducted a safeguard investigation into imports of footwear during the period from 1991 to 1996 and found the following data related to absolute levels of imports: Argentina then imposed safeguard measures that increased import duties on foot
> The state of California imposed an ad valorem property tax on cargo containers owned by Japanese companies and temporarily located in California ports. The containers were used exclusively for transporting goods in international commerce. They were based
> The European Communities requested a WTO panel to decide whether U.S. Sections 301−310 [the Act] violated GATT dispute settlement procedures. The Act permits the USTR to investigate possible violations of GATT or other international trade agreements, to
> Throughout the 1970s, European consumers became more concerned over the use of hormones to speed the growth of livestock. Their fears were in part based on the fact that some people had been injured by the illegal use of certain banned hormones. Some con
> The Royal Thai government maintains restrictions on imports of cigarettes. The Tobacco Act of 1966 prohibited the import of all forms of tobacco except by license of the director-general of the Excise Department. Licenses have only been granted to the go
> The European Community (EC) had been the world’s largest importer of bananas, two-thirds of which were grown in Latin America. A large percentage came from developing countries that were once colonies of Britain, Spain, and France, located in Africa, the
> For 50 years prior to this case, India had placed complex restrictions on the import of agricultural, industrial, and consumer goods from other countries. Goods placed on the “negative list” could only be imported by special license, which was generally
> Bellaizac–Hurtado and others were arrested in Panama for drug trafficking aboard a Panamanian-flagged vessel in Panamanian waters. They were extradited to the United States for prosecution under the Maritime Drug Law Enforcement Act. They argued that the
> In the case in Question 1, if a U.S. court sought to enforce U.S. laws on Slobovia’s leading export, how would U.S.– Slobovian relations be affected? What if a key U.S. naval base was located in Slobovia? How well equipped are courts to conduct such rela
> The Japan Liquor Tax Law, or Shuzeiho, taxes liquors sold in Japan based on the type of beverage. There are ten categories of beverage (the categories are sake, sake compound, shochu, mirin, beer, wine, whiskey/brandy, spirits, liqueurs, and miscellaneou
> Since 1963, the European Economic Community (EEC) had negotiated tariff rates with the developing countries that export bananas, and these concessions were bound in the tariff schedules at 20 percent ad valorem. In 1993 the EEC took over banana import re
> During a time of political controversy in the United States over immigration policy and enforcement, the State of Arizona enacted a statute to deal with the large number of unlawful aliens in the state. Section 3 made it a misdemeanor under Arizona law f
> Star-Kist Foods, a U.S. producer of canned tuna, instituted a lawsuit to protest the assessment of duties made by the collector of customs on imported canned tuna. Duty was assessed on the canned tuna at the rate of 12.5 percent pursuant to a trade agree
> This action was brought by a U.S. senator against the president to enjoin him from returning the Hungarian coronation regalia to the People’s Republic of Hungary. The Holy Crown of St. Stephen had been held by the Hungarian people as a treasured symbol o
> In the early 1950s, the United States was at war in Korea as part of a United Nations “police action.” American steelworkers were threatening to strike over wages and collective bargaining disagreements with steel companies. The president made every atte
> Westinghouse contracted with Panalpina, a freight forwarder, to arrange for the transportation of an electric transformer from Italy to Iowa. Panalpina stated to Westinghouse, “[R]est assured your shipment will receive door to door our close care and sup
> In 1988, Semetex entered into an agreement with the Al-Mansour Factory in Baghdad, Iraq, an enterprise owned and operated by the government of Iraq, in which Semetex agreed to provide Al-Mansour with an “ion implanter” used to mark circuitry pathways on
> The plaintiff contracted to purchase hog bristles from Transea Traders in India. The defendant bank issued an irrevocable letter of credit to Transea covering a shipment of hog bristles and payable upon presentation of the proper documents. Transea fille
> The defendant bank issued an irrevocable letter of credit on behalf of its customer, Adastra Knitting Mills. It promised to honor sixty-day time drafts of Courtaulds for up to $135,000 covering shipments of “100% Acrylic Yarn.” Courtaulds presented its d
> There are many U.S. government programs to aid American firms in boosting exports. The International Trade Administration and its U.S. Commercial Service, as well as the Small Business Administration administer several of these programs. Undertake an Int
> National Park Bank issued a letter of credit addressed to Ronconi & Millar, beneficiary, at the request of its account party, Sun Herald, “covering the shipment of 1,322 tons of newsprint paper in 72½-inch and 36½-inch rolls to test 11-12, 32 lbs. at 8½
> The plaintiff, Z.K. Marine, is an importer of yachts for sale in the United States. In 1987, five yachts were shipped from Taiwan to the United States aboard the MV Archigetis. Each yacht was shipped under a clean negotiable bill of lading. Each of the f
> S.S. Sabine Howaldt, a small cargo vessel, was chartered for a voyage from Antwerp, Belgium, to Wilmington, Delaware. The ship was carrying steel products consigned to the plaintiff. The cargo was in good condition when loaded at Antwerp. On arrival at t
> Dr. Abid Hanson was traveling with his wife and family aboard an Olympic Airways flight from Athens to New York. He suffered from asthma and was affected by secondhand smoke. They were seated in a nonsmoking section, three rows from the smoking section.
> Tseng purchased a ticket on an El Al flight from New York to Tel Aviv. Prior to boarding, an El Al security guard questioned her about her travel plans. The guard considered her response “illogical” and ranked her as a security risk. Tseng was taken to a
> Kumar sold 700 television sets to one of its largest customers, Nava, in Venezuela. The contract was on CIF terms, Maracaibo. However, they agreed that Nava would not pay Kumar until Nava actually sold the merchandise. Kumar obtained the televisions from
> In May 2005, Cedar Petrochemicals, Inc., a New Yorkbased petrochemicals trader, entered into a contract with Dongbu Hannong Chemical Co., Ltd., a South Korean corporation, whereby the latter agreed to deliver a certain quantity of liquid phenol to a ship
> The plaintiff had purchased ore from Oppenheimer. The plaintiff requested that the defendant bank negotiate documents on its behalf from Oppenheimer covering a shipment of “cobalt ore analysis not less than 5 per cent peroxide.” The plaintiff specified t
> The defendant entered into a contract to sell hops to the plaintiff in London, as follows: . . . one hundred bales, equal to or better than choice brewing Pacific Coast hops of each of the crops of the years 1905 to 1912 Inclusive. The said hops to be sh
> Ample Bright Development Ltd. is a Chinese trading company that receives inquiries from overseas companies regarding handbag accessories and finds suitable Chinese factories to produce those accessories. Ample Bright received a series of purchase orders
> Successful international managers agree that success in entering a foreign market comes from planning and commitment. What does this mean? What kind of commitment do you think they are referring to? It is also often said that exporting is not an “elixir”
> Banque de Depots, a Swiss bank, brought an action against Bozel, a Brazilian exporter, seeking a money judgment because Bozel had allegedly misapplied the bank’s funds. The bank obtained an order seizing 1,300 metric tons of calcium silicon located in a
> Juliette Shulof Furs (JSF) is a New York corporation that has been in the fur-dealing business for fifteen years. George Shulof, an officer of JSF, attended two auctions conducted by Finnish Fur Sales (FFS) in Finland in 1987. He purchased more than $1.2
> Friedrich Nottebohm was born in Germany in 1881. He moved to Guatemala for business reasons in 1905 and lived there until 1943, except for business trips and visits to his brother in Liechtenstein. He remained a German citizen during that time. One month
> Plaintiff Tandrin Aviation Holdings Ltd. (Tandrin) agreed to sell a Bombardier executive jet aircraft to Aero Toy Store, L.L.C. (ATS) for U.S. $31.75 million. ATS paid a U.S. $3 million deposit to an escrow agent. Both the deposit and the balance of the
> Chicago Prime Packers, Inc., was a Colorado corporation with its principal place of business in Avon, Colorado. Northam Food Trading Company was a Canadian corporation with its principal place of business in Montreal, Quebec, Canada. Chicago Prime and No
> Solae, a U.S. limited liability company with its principal place of business in St. Louis, Missouri, had sold soy lecithin to Hershey Canada, Inc., a Canadian corporation with its primary place of business in Mississauga, Ontario (Canada), since 2003. Th
> Plaintiff It’s Intoxicating Inc. is a Pennsylvania corporation that manufactures and distributes cosmetic products to various retailers. Defendant Maritim Hotelgesellschaft is a German company which owns hotels throughout Germany. Zimmer is an individual
> Plaintiffs Bruce and Renee Fallhowe (the Fallhowes) are residents of Colorado. Hilton Worldwide, Inc. (Hilton) is a Virginia corporation that owns the Hilton Los Cabos in Cabo San Lucas, Mexico. The Fallhowes were guests at the Hilton Los Cabos in Novemb
