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Part Ⅰ Introduction3

Chapter 1 The Legal Environment of International Business3

1.1 International Business and Globalization3

1.2 History of International Business Law5

1.3 Sources ofInternational Business Law9

A．International Treaties and Conventions9

B．International Business Customs and Usages10

C．National Laws11

D．Other Sources11

1.4 Comparison of Legal Systems12

A．The Romano-Germanic Civil Law System12

B．The Anglo-American Common Law System13

1.5 The Role of International Organizations in International Business14

Exhibit 1-1:Outline ofthe Uruguay Round Final Act6

Exhibit 1-2:The structure ofthe WTO18

Part Ⅱ Law of Business Organizations23

Chapter2 Sole Proprietorships23

2.1 Advantages and Disadvantages of Sole Proprietorship24

2.2 The Law Governing Sole Proprietorships24

Chapter 3 Partnerships27

3.1 Forms ofPartnerships27

3.2 Partnership Formation28

3.3 Partnership Operation34

3.4 Partnership Termination36

Exhibit 3-1:A sample partnership agreement29

Case 3-1:Helpinstill V. Regions Bank34

Chapter 4 Corporations39

4.1 Nature ofCorporations39

4.2 Classification ofCorporations40

4.3 Corporate Formation41

4.4 Disregarding the Corporate Entity44

4.5 Corporate Management49

A．Corporate Management Institutions50

B．Corporate Management Personnel52

4.6 Merger,Consolidation and Dissolution of Corporations55

Case4-1:Salomon v Salomon＆Co,Ltd45

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

Part Ⅲ Law of International Sale of Goods63

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

5.1 What is a Contract?63

5.2 Classification ofContracts65

5.3 Essential Elements ofa Valid Contract67

5.4 Rules Governing International Sale ofGoods71

A．United Nations Convention on Contracts for the International Sale ofGoods71

B．National Laws72

C．Principles of International Commercial Contracts74

D．International Customs and Usages:Incoterms76

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 ofCISG86

A．Three Requirements for the Application of CISG86

B．Choice ofLaw Clauses87

C．Sales Excluded from CISG90

D．Contractual Issues Excluded from CISG93

6.2 General Provisions for Interpretation of CISG94

6.3 Contract Formation96

A．The Offer97

B．The Acceptance98

C．Battle of the Forms99

6.4 Seller's Obligations101

A．Obligations of Delivery101

B．Obligations of Quality of the Goods103

C．Obligations of Property Issues105

6.5 Buyer's Obligations106

A．Obligations of Payment106

B．Obligations of Inspection and Notice of Defects107

6.6 Risk of Loss108

6.7 Excused Performance109

6.8 Remedies for Breach of Contract111

A．Suspension of Performance111

B．Avoidance of a Contract112

C．Damages114

D．Specific Performance118

E．Other Remedies Available under CISG120

Case 6-1:American Biophysics Corp.v.Dubois Marine Specialties88

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

Chapter 7 International Carriage of Goods125

7.1 Carriage of Goods by Sea126

A．Bills of Lading126

Fundamentals of Bills of Lading126

International Conventions Governing Bills of Lading129

Carriers Duties and Immunities Under a Bill of Lading131

Other Questions133

B．Charterparties133

7.2 Carriage of Goods by Air134

A．The Warsaw Convention 1929135

B．The Montreal Convention 1999136

7.3 Carriage of Goods by Road and Rail137

7.4 Multimodal Carriage of Goods138

7.5 Marine Cargo Insurance139

A．Types of Losses139

B．Types of Marine Insurance Policies140

C．Types of Coverage141

Chapter 8 Payment in International Sale of Goods143

8.1 Modes of International Payment143

8.2 Fundamentals of Negotiable Instruments146

8.3 The Bill of Exchange149

A．Laws Governing the Bill of Exchange149

B．BriefRequirements of the Bill of Exchange150

C．Negotiation of the Bill of Exchange151

8.4 Documentary Letters of Credit152

A．Overview152

B．The Governing Rules:UCP 600155

C．Basic Legal Principles156

The Principle of Independence156

The Rule of Strict Compliance160

8.5 Standby Letters of Credit163

Exhibit 8-1:A Sample of Draft148

Exhibit 8-2:A Sample of Check148

Exhibit 8-3:A Sample of Promissory Note149

Case 8-1:Sztejn V.Henry Schroder Banking Corporation157

Part Ⅳ Law of International Intellectual Property Rights169

Chapter 9 International Transfer of Intellectual Property169

9.1 Fundamentals ofIntellectual Property Rights169

A．Copyrights170

B．Patents171

C．Trademarks173

D．Know-how or Trade Secrets174

9.2 International Intellectual Property Organizations and Treaties175

9.3 Regulations on International Licensing178

A．Typical Terms in International Licensing Agreements179

B．Restrictive Business Practices in International Licensing181

Price Fixing181

Non-competition Clauses182

Challenges to Validity182

Tying Clauses183

Grant-Back Provisions183

C．Rules Regulating the Anticompetitive Aspects of International Licensing184

D．Compulsory Licenses186

9.4 Regulations of International Franchising187

Case 9-1:Dayan V. McDonalds Corp188

Part Ⅴ Law of International Commercial Disputes Resolution193

Chapter 10 Settlement of International Commercial Disputes193

10.1 Methods ofInternational Commercial Dispute Settlement193

10.2 Settlement of Commercial Disputes through Arbitration195

A．Overview of Arbitration and International Commercial Arbitration195

Understanding Arbitration and International Commercial Arbitration195

Types ofintemational Commercial Arbitration197

Advantages ofInternational CommercialArbitration198

Disadvantages ofInternational Commercial Arbitration199

B．International Commercial/Arbitration Clauses200

Form ofArbitration Clauses200

Validity ofArbitration Clauses201

Drafting Arbitration Clauses203

C．International Commercial Arbitration Procedure204

Appointment ofArbitrators205

Arbitration Proceedings205

D．Enforcement ofArbitral awards:New York Convention206

E．Enforcement ofForeign Arbitral Award in the People's Republic of China207

10.3 Settlement ofCommercial Disputes Involving States through Arbitration209

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

B．Dispute Settlement in WTO210

10.4 Settlement ofCommercial Disputes through Litigation210

A．Jurisdiction211

B．Choosing the Governing Law211

C．Proving Foreign Law212

D．Recognizing and Enforcing Foreign Judgment213

Case 10-1:Scherk v.Alberto-Culver Co201

List of Legal Terms215

References230