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Course Code                     :               LAW 601

Course Name                    :               International Business Law

Exam Duration                :               24 hour Take Home Exam


Take Home Exam Instructions

See instructions on the inside cover of the Exam Script and after completing the exam email it to

Late Submission Policy

Take-home exams must be submitted via email by the published submission date and time. A late take-home examination is one that is submitted after the due time and date set for submission or after any extension has expired. A student who obtains an extension is not subject to penalty under these rules.

Take-home exams submitted late will incur a marking penalty. A penalty for late submission will be imposed in the following way:

For the first 2 hours late (or part thereof) a 5% mark reduction applies;

  • For every hour late (or part thereof) after the first 2 hours, the penalty increases to a 10%

mark reduction.

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Academic Integrity and Plagiarism

Geneva Business School expects all students and staff to act with integrity and honesty.  This core value is essential to the function of our academic community and to the pursuit of truth and knowledge.

Plagiarism involves the submission of material authored by another person but represented as the student’s work. Students are expected to acknowledge the intellectual property of others in the preparation of assessment tasks.

L A W 6 0 1

I N T E R N A T I O N A L  B U S I N E S S  L A W 


1. There are four case studies with associated questions. Read the case studies and answer case 1 and choose two other cases between case 2, 3 and 4.

2. Before writing your answers, read the cases and prepare suitable notes to assist you to write succinct and accurate answers.  The quality of your answers will be determined on the basis of the completeness of your answer. You will need to identify the relevant legal issues, analyze them from the buyer´s and seller´s point of view, apply the law to the facts of the question and cite relevant case law and statutes to support your answers.

3. Case study 1 is worth 34 marks and case study 2, 3 and 4 is worth 33 marks each. Your task is to answer the question as completely as you can. You are expected to adhere to the word limits.

4. Answers must be written in the Exam Script Book and submitted as a Word file format, (download the

Exam Script Book template from your email).

International Sales of Goods – Drafting of Agreement

  1. Facts

The Seller Co, domiciled in Italy, intends to conclude an agreement with a company in Saudi Arabia, the Buyer Co, to export ceramic tiles.

The Seller Co undertakes to sell an amount of 5.500 ceramic tiles for the price of 30 US$ / square meter tile. The Seller Co will send the ceramic tiles by ship, to Saudi Arabia under a CFR, before 25th July 2016.The Buyer Co will get delivery of the ceramic tiles in Pozzallo Port. The Seller Co will only sell by way of securing a letter of credit.

Both parties have agreed to draft the contract based on the United Nations Vienna Convention on contracts for the international sale of goods (CISG), in case of any dispute English law, arbitration rules, institution and the court will apply.

  1. Questions (34 marks)

Please, draft the agreement between the parties, taking into account that this agreement must be implemented and performed both in Italy and in Saudi Arabia. Include all the possible elements that you can think of that protect at the maximum the interests of both parties. Use the study material, internet resources and all that we have discussed in class during the lectures on the international sale of goods.

Your contract should include the following elements:

  1. The parties;

  1. Rules on the goods;

  1. The performance of the contract by the parties of the seller and of the buyer;

  1. Breaches and remedies;

  1. The rules on avoidance of contract and damages;

  1. The standard provisions.

Convention on the International sales of Goods – Case Resolution

1          Facts

Buyer and Seller entered into a contract for Seller to deliver a sophisticated computer to Buyer by January 1. Seller was late in delivering the machine, so Buyer wired Seller on January 2: “Anxious to take delivery of the computer. Hope that it arrives by February 1.” Seller delivers the computer on February 5, but Buyer refuses to accept it and declares that the contract is avoided because Seller failed to hand over the computer before the February 1 date specified in the January 2 telegram. Both Buyer and Seller agree that there has not been a fundamental breach.

2           Questions (33 marks)

Taking into account the fact that the agreement between the parties is regulated by the articles of the CISG, please indicate which party is right, on which ground and which damage is to be paid to whom, if any.

Your analysis and decision need to include the following:

  1. Applicability of the CISG;

  1. The rules on the goods;

  1. Formation of the contract;

  1. The buyer´s and seller´s obligations;

  1. Analyze the case from the seller´s and buyer´s potential arguments;

  1. Remedies of the seller and of the buyer;

  1. Lack of conformity of the goods;

  1. Avoidance of contract and damages;

  1. Defenses;

  1. The applicable law and jurisdiction and any other legal elements that you can think of.

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Case 3


Transportation of Goods – Case resolution


  1. Facts


Seller agreed to ship 15,000 tons of dates CFR Port of Ras Tanura, Saudi Arabia, to Buyer in England. Buyer designated the SS Tanura to take delivery at pier 5 in Port of Ras Tanura.  On the agreed date for delivery, Seller delivered the dates to pier 5, but the ship was not at the pier. Because another ship using the pier was slow in loading, the Tanura had to anchor at a mooring buoy in the harbour and Seller had to arrange for a lighter to transport the dates in containers to the ship.  The lighter tied up alongside the Russet and a cable from the ship’s boom was attached to the first container.  As the container began to cross the ship’s rail the cable snapped.  The container then fell on the rail, teetered back and forth for awhile, and finally crashed down the side of the ship and capsized the lighter.  All of the dates were dumped into the sea. Buyer now sues Seller for failure to make delivery.  Is Seller liable?

Suppose, in question 1, the contract had been CIF Ras Tanura. Would Seller be liable?

  1. Questions (33 marks)

Apply the CISG to the above contract between Buyer and the Seller. Your analysis and decision need to include the following:

  1. Applicability of the CISG;

  1. The rules on the goods;

  1. Formation of the contract;

  1. The buyer´s and seller´s obligations;

  1. Analyze the case from the seller´s and buyer´s point of view;

  1. Remedies of the seller and/or of the buyer;

  1. Lack of conformity of the goods;

  1. Avoidance of contract and damages;

  1. Defenses;

  1. The standard provisions and any other legal elements that you can think of.


Case Resolution and Answering to Relevant Questions

  1. Facts

A subsidiary in State B (B. Ltd.) has promised to buy goods from a seller in State S (S. Ltd.). B Ltd. has agreed to secure an irrevocable letter of credit that authorizes payment upon delivery of a clean bill of lading and all the usual export documents.

Since you helped B. Ltd. with its letter-of-credit arrangement with S. Ltd., S. Ltd. delivered the required documents to a bank in State S that had confirmed the letter of credit.

  1. Questions (33 marks)

  1. Describe the procedure and transactions involved in the creating of the letter of credit.

  1. All the required documents are correct except for the clean bill of lading that at first sight could be a false one. Should the confirming bank pay the seller on the letter of credit?

If it does, must the issuing bank reimburse the confirming bank?

  1. If so, has B. Ltd. any recourse against either bank?


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