Does the absence of choice-of-law clause affect

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Reference no: EM133810394

Question

The United Nations Convention on Contracts for the International Sale of Goods (CISG) provides uniform rules for the sale of goods between businesses in different countries. For this discussion, review the following hypothetical scenario and analyze whether the CISG applies to the contract in question.

An American electronics company based in California enters into a contract with a German distributor to sell 1,000 computer processors. The contract specifies the goods will be shipped from the U.S. to Germany, and payment will be made in U.S. dollars. The contract does not include a choice-of-law clause specifying whether U.S. or German law applies.

Both the U.S. and Germany are signatories to the CISG. However, the contract mentions that any disputes will be resolved through mediation, but it does not explicitly state whether the CISG is excluded.

Six months after signing the contract, a dispute arises regarding the quality of the processors, and the American company attempts to void the contract under domestic U.S. law. The German distributor, on the other hand, argues that the CISG governs the contract and that the terms should be resolved under the Convention.

1. Does the CISG apply to this contract, considering that both the U.S. and Germany are signatories? What factors determine whether the CISG governs the contract in this case?

2. Does the absence of a choice-of-law clause affect whether the CISG is applicable?

3. Could the parties have excluded the CISG from applying, and if so, how would they have done so?

4. If the CISG applies, how would it impact the resolution of the dispute differently than domestic U.S. contract law might?

In your analysis, consider the key criteria for CISG applicability, including the nature of the contract, the location of the parties, and whether there are any indications that the parties intended to exclude the CISG.

Reference no: EM133810394

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