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 beans for “back to back” resale to a buyer in Colombia. However, the government of Colombia required a certificate of origin issued by a Chamber of Commerce showing that the beans were a product of the European Economic Community (EEC, now the European Union). Cometals requested that Tarbert supply such a certificate and Tarbert agreed. Employees of the two firms collaborated on the wording of the certificate even though they understood that Kenyan red beans originated in Africa. Later, Cometals refused the beans due to insect damage and Tarbert sued. Cometals maintained that the agreement should be declared void because Tarbert could not, except through fraud, have supplied an EEC certificate of origin for Kenyan red beans. Tarbert later resold the beans to the original seller. NEWMAN, SENIOR JUDGE Concededly, both Tarbert and Cometals were cognizant of the fact that an EEC certificate of origin stating that the Kenyan beans were of the origin of an EEC member would be false and would be shown to third persons. * * * Simply put, [Cometals] intended to deceive the Colombian customs officials with a false certificate as to the beans’ country-of-origin so that they would allow the importation of the beans by Cometals’ customer. Irrespective of the rather incredible explanations of [Tarbert’s employees] as to what they understood to be the purport of the requested certificate of origin, they finally and grudgingly conceded that an EEC certificate stating that the goods were of the origin of an EEC member would be understood by anyone reading it to mean that the beans were grown in an EEC country and not simply shipped from such country. * * * It is evident from the Kenyan origin of the beans that it would have been impossible for Tarbert to honestly obtain from a Chamber of Commerce and furnish Cometals with a bona fide EEC certificate of origin stating that the goods were of the origin of a member of the EEC since concededly Kenya is not an EEC member. Thus, the only way in which Tarbert could have complied with the agreement would have been to convince an official of a Chamber of Commerce to issue a fraudulent certificate or to obtain a forged certificate. Both acts are obviously illegal. “No one shall be permitted to profit by his own fraud, or take advantage of his own wrong, or to found any claim upon his own iniquity, or to acquire property by his own crime. These maxims are dictated by public policy, have their foundation in universal law administered in all civilized countries, and have nowhere been superseded by statutes.” [citations omitted] * * * Plainly, enforcement of the agreement for either party would be contrary to public policy . . . Decision. The complaint and counterclaim were dismissed………. Required: 1. Import/export transactions usually require much more documentation than domestic transactions. These include detailed invoices, packing lists, shipping and insurance documents, and specialized certificates. In this case, a “certificate of origin” was required by the government of Columbia before the goods could be imported. Does it refer to the country from which the goods were shipped or where they were grown or made? Why do you think Columbia required a certificate of origin? What is its purpose? 2. Suppose that the beans had arrived in Columbia and were then stopped by Columbian customs authorities because of a fraudulent certificate. What do you think might have happened to the beans? What would the risk have been to Cometals and Tarbert? What if the Columbian buyer had already paid for the beans? 3. Evaluate and discuss the conduct of Cometals and Tarbert. Fraudulent documentation is not uncommon in international trade, especially when parties do not have a history of business together. What are the lessons to be learned by all parties?
> 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
> 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
> 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?
> 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
> * * * 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
> 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
