🙵🙵🕮🙵🙵

FINAL PROJECT

SUBJECT: International Business Law (INS302202)

Lecturer: Hà Tú Cầu
Student’s name: Phạm Thị Thúy An

ID: 18071003

Date of birth: 13/10/2000

Submission date: 07/06/2022

Hanoi, 07/06/2022
ASSIGNMENT

Part 1:

2. WTO principles of nondiscrimination: Unconditional Most-Favored-Nation (MFN)

Trade, and National Treatment.

A country should not discriminate between its trading partners by giving them equal
"most-favored-nation" or MFN status, or between its own and foreign products, services, or
nationals giving them "national treatment"; and it should not discriminate between its own and
foreign products, services, or nationals giving them "national treatment".

- Unconditional Most-Favored-Nation (MFN) Trade: treating other people equally : Countries

are not allowed to discriminate amongst their trading partners under WTO rules. If you give
someone a special favor (such as a lower customs duty rate for one of their items), you must
reciprocate for all other WTO members. Under normal trading circumstances, all WTO member
nations must apply MFN tariff rates to products imported from any and all other WTO member
countries. For example, before Vietnam's accession to the WTO, VN applied an import tariff on
perfume imported from the US at 50% and France at 60%. After Vietnam's accession to the WTO,
VN applied import tariffs on perfume (18%).

- National treatment: Treating foreigners and locals equally: At least manufactured commodities
should be treated similarly after they have entered the market. Foreign and domestic services, as
well as foreign and domestic trademarks, copyrights, and patents, should all be treated the same.
Once a product, service, or piece of intellectual property has hit the market, it receives national
treatment. The three main WTO agreements, including Article 3 of GATT, Article 17 of GATS,
and Article 3 of TRIPS, all contain the principle of "national treatment." For example, Before
Vietnam's accession to the WTO, Vietnam applied a special tax of 40% to domestic alcohol, and a
special tax of 80% to imported alcoholic beverages from the EU, US, and Australia. After
Vietnam's accession to the WTO, Vietnam applied a special tax of 40% on both domestic alcohol
and imported alcohol from the EU, the US, and Australia.

* Is it more difficult to apply the MFN or National Treatment?

Because it is difficult to protect specific businesses that require domestic care and because similar
items are complex, national treatment is more difficult to implement than most-favored-nation
treatment.

* The following are the distinctions between MFN and National Treatment: First, MFN refers to
international regulations, whereas National Treatment refers to internal legislation. Furthermore,
MFN refers to equal treatment for all WTO members, while National Treatment refers to equal
treatment for domestic and imported products from WTO members. Finally, the MFN principle
can only apply to measures that benefit WTO members equally or better. Therefore, treating
non-WTO members better is a violation of the principle.

3. What are essential elements of an international sales contract?

- The description of goods: Make sure it accurately describes the things the buyer wants to
acquire and includes all pertinent information, such as: kind, model number, weight, color, and
size. Problems with the agreement's other conditions usually resolve themselves as long as the
buyer receives what they paid for.

- The contract price: The contract currency and the price amount must be explicitly stated in
both figures and words by the parties. If the parties cannot agree on a price in the contract, the
contract should include a provision stating how the price would be determined.

- Delivery Terms: The contract specifies the delivery time and date, as well as the delivery
location and who is responsible for the items' risk of loss while in transit.

- Inspection Period: This period allows the customer to check the items after they are delivered
and reject those that are not in acceptable condition. The length of the examination depends on
the type of items involved.

- Warranties: terms and conditions that the buyer and seller should agree to and put in the sales
contract. Because goods and services offered differ from industry to industry and firm to firm,
there is no "standard warranty" that can be expected on either end. To appropriately set
expectations for the future, be clear about the warranties included, if any.

- Payment Details: all international payment methods, including, at a minimum, advance

payment, open account, documentary collection, and documentary credit (also known as letter
of credit).

4. Advantages of Arbitration and Mediation vs. Litigation in resolving international

commercial disputes.

Arbitration is preferred by many as a way to resolve commercial disputes. It has many

advantages over litigation in court.

- Arbitration is frequently described as being in opposition to litigation. The use of a neutral

third party or panel of neutral third parties known as an arbitrator is hired to settle the issue
between parties in conflict under the arbitration procedure; it is a process of resolving the
dispute outside of the court. The arbitrators listen to the arguments given by the disputing
parties and then render an unbiased ruling that is favorable to both sides.

- Arbitration is generally preferred over litigation because it is less expensive, faster, more
secure, and provides the parties with more privacy. And, among the many advantages of
arbitration over litigation, the most notable advantage is its cost and time effectiveness.

Mediation has a number of advantages compared to litigation when it comes to resolving

international commercial disputes, including:

- The procedure is less expensive than going to court. Mediation is a much faster way to reach
an agreement than going to court. It is a private operation that is not recorded in the public
record. The mediation process can continue as long or as short as the parties like, and it can
take place anytime all parties are available. Participants can come up with their own answers
to the problem, which can be as unique as they like, due to the creative nature of the process.

- The parties can talk and negotiate directly with one another, which allows them to get to the
heart of the situation. Mediation develops conflict-resolution skills, so participants may be
able to use them on their own in the future, avoiding both the courtroom and mediation. The
mediators are completely impartial and do not make any judgements about the case. The role
of the mediator is to assist the parties, make suggestions, and move the process along. In
mediation, no one wins or loses. Alternatively, the parties can work together to come up with a
solution that they both like.

Part 2. Choose 1 case to analysis and answer the questions (40 points)

Case 2:

A. German buyer and a France seller concluded a contract for the sale of machinery to produce
cosmetics. The machinery delivered turned out to be defective and the parties concluded a
second contract to replace the defective machinery with machinery of a different type and price.
After the new machinery had been delivered the buyer brought an action before a court alleging
that the new machinery was also defective.

Answer the following questions and give reasons for your answers:

1. Does Vienna Convention (CISG) apply?

- We can observe that the CISG applies based on the conditions for application of the CISG:
first, both parties are satisfied that they belong to two different countries, Canada and
Denmark, both of which are parties to the General Convention (article 1). Second, these
transferred goods are not infringed upon (Article 2). The contract is for the sale of
commodities for commercial purposes. Finally, the parties' principal places of business are in
nations that have ratified the Convention (Scandinavian).

2. Under CISG, has seller fulfilled its obligations?

- Yes, the reason is that the seller promised to deliver the tires on time to CIF Copenhagen.
Furthermore, unless otherwise specified, conventional contract terms provide that "average
grade" tyres will be delivered. Therefore, giving winter tires that aren't fit for harsh weather
isn't the seller's fault. As a result, the vendor has not violated article 35 of the CISG in this
circumstance. Despite receiving items, buyers were not investigated until February 2007,
when it was discovered that 300 were missing, indicating that this was the buyer's fault. The
carrier is also responsible for late deliveries. As a result, the seller has met his delivery
responsibilities.

3. Which remedies could buyer have?

- First, if the goods do not fit the contract's description, the buyer has the right to demand that
the seller produce new items. If the buyer does not notify the seller of the goods'
nonconformity within two years of when the goods are actually delivered to the buyer,
provided that this period does not exceed the requisite commitment term, the buyer forfeits
the right to invoke the goods' nonconformity (article 39). The buyer has the option of giving
the seller a fair length of time to complete his responsibilities.

- Second, if the two sides are unable to establish a mutually acceptable agreement, they can
employ the mediation process to obtain an agreement. In another scenario, if the items fit the
contract's description, the buyer will be unable to seek compensation from the seller. They
can compensate for this, though, by reselling the items to buyers in other nations where
inclement weather corresponds to the features of the items.

END OF EXAM
Reference
1. CISGVN. (1980). Công ước của Liên hợp quốc về hợp đồng mua bán hàng hóa quốc tế.
Available at: https://www.vksndtc.gov.vn/KND/Documents/Ban%20dich%20CISG
1980.pdf. (Accessed 27 December, 2021)
2. Lê Tuấn Hải. (2020). Petrovietnam th ng ki n v tranh ch p quốc tế như thế nào Available
at:https://goldsunlaw.com.vn/petrovietnam-thang-kien-vu-tranh-chap-quoc-te
nhu-the-nao.html (Accessed 27 December, 2021)
3. Richard Schaffer, Filiberto Agusti, LuciGn J. Dhooge. (2018). International Business Law
and its Environment. (Tenth Edition). Cengage Learning, Inc. USA.