Understanding UCC Statements: Product Liability, Warnings, and Contracts, Exams of Law

Download Understanding UCC Statements: Product Liability, Warnings, and Contracts and more Exams Law in PDF only on Docsity! ALC I2 ILegal. Question and Answers Latest updates 2024 1. What Iare Iitems Iof Ipersonal Iproperty Ithat Iare Iattached Ito Ireal Iproperty Iand IcannotIbe Iremoved Iwithout Isubstantial Idamage Icalled? -Connectors, IRelaters, IEntanglements, IFixtures 2. Which Iof Ithe Ifollowing Istatements Ibest Idescribes Ian Ioffer Iunder IUCC -An Ioffer Iis Inot Idefined Iby IUCC, IAn Ioffer Iis Ian Iinvitation Ito Ibuy Ior Isell Ibetween Imerchants, IAn Ioffer Iis Ianything Iwriting Isufficient Ito Idescribe Ithe Igoods, IAn Ioffer IisIcontained Iin Ithe Istandard Ibusiness Iforms. 3. A Iproduct Ithat Iwas Isold Iwithout Ia Icomponent Ipart Iproperly Ifastened Ito ItheIproduct Iis Ian Iexample Iof Ia defect -Design, IManufacturing, IDefective Iwarning, INon Iof Ithe Iabove 4. A is Icreated Iwhen Itwo Ior Imore Ipersons Iagree Ito Iplace Itheir Imoney, Ilabor, IorIskills Iin Ia Ibusiness Iand Ito Ishare Ithe Iprofits Iand Ilosses -Sole Iproprietorship, IGeneral Ipartnership, ILimited Ipartnership, IC Icorporation 5. The defense Ishields Ia Imanufacturer Ifrom Iliability Ifor Ia Idefective Idesign Iif InoIsafer Iproduct Idesign Iis Igenerally Irecognized Ias Ibeing Ipossible -Contractor, IInnovative, IState-of-the-art, 6. Contract Ilaw Icomes Ifrom Iwhich Iof Ithe Ifollowing? -Case Ilaw, IStatutes, ITradition, IAll Ithe Iresponses Iare Icorrect 7. Which Iof Ithe Ifollowing Irestricts Ithe Istatute Iof Ilimitations Ias Ia Idefense Iin Ia IproductIliability Ilawsuit? -A Irevival Istatute, IA Iliability Istatute, IA Irepose Istatute, IBoth Ia Irevival Istatute Iand IaIrepose Istatute. 8. The Ipreemption Idefense Iinvolves Icertain , Iwhich Iset Iminimum IsafetyIstandards Ifor Iproducts. -Federal Ilaws, ICourt Idecisions, IState Ilaws, IPrivate Iguidelines 9. Under Ithe Irule Iapplied Iin Imost Istates, Iwhich Iof Ithe Ifollowing Ijustifies Iholding IanIacquiring Icorporation Iliable Ito Ia Iparty Iinjured Iby Ia Idefect Iin Ia Iproduct Isold Iby Ithe Iacquired Icorporation? - IThe Inew Icompany Iis Ia Icontinuation Iof Ithe Ipredecessor Icorporation, IThe IacquiringIcorporation Iis Iin Ia Ibetter Iposition Ito Ibear Ithe Irisk Ithan Ithe Iconsumer, IThe Itransaction Iwas Ientered Iinto Iescape Iliability, IAll Iof Ithe Iresponses Iare Icorrect. 10. A Istatute Iof prevents Irecovery Ifor Iproduct Iinjuries Iby Ilimiting Ithe Itime IperiodIfor Irecovery Ifrom Ithe Idate Iwhen Ithe Iinjury Ioccurred -Limitations, IRepose, IRecovery, IAll Iof Ithe Iabove 11. Under Ithe IUCC, Iwhich Istatement Iis Inot Itrue Iregarding Ia Ibuyer’s Iright Ito IrejectInonconforming Igoods? -The Ibuyer Imay Ireject Iany Ior Iall Iof Ithe Igoods, IThe Iright Ito Ireject Ithe Igoods Ican Ibe Iwaived Iinadvertently, IThe Ibuyer Imay Itreat Ithe Igoods Ias Iif Iit Iowned Ithem, IA IbuyerIwho Ihas Itaken Ipossession Iof Igoods Imust Ihold Ithe Igoods Ifor Ia Itime Isufficient Ito Ipermit Ithe Iseller Ito Iremove Ithem. 12. If Ia Iproduct Iis Iunavoidably Iunsafe, Ithe determines Iwhether Ithe IdangerousIproduct Is Ialso Idefective. -Adequacy Iof Ithe Iwarning Ilabel, IObviousness Iof Ithe Irisk, Icare Iin Idesign Iand Imanufacturer, IExtent Iof Ithe Idanger 13. I is Ithe Iprocess Iby Iwhich Ia Icountry Iasserts Ia Iright Ito Iregulate Iactivities IthatIoccur Ibeyond Iits Iborders. -Internationalization, INationalization, IExtraterritoriality, INone Iof Ithe Iabove 14. I Itariffs Irequire Ithe Iimporter Ito Ipay Ia Ipercentage Iof Ithe Ivalue Iof IimportedImerchandise. -Ad Ivalorem, IAd Ihoc, IHarmonized, ICustoms Ivaluation 15. A contract Iis Ia Ipromise Igiven Iin Ian Iexchange Ifor Ianother Ipromise. -Unilateral, IBilateral, IMutual, ICollateral 16. Under Ithe IUCC Istatue Iof Ifrauds, Iwhich Iof Ithe Ifollowing Iterms Imust Ibe Iin Ia IwritingIorder Ito Isatisfy Ithe Istatute? -The Iprice, IThe Iquantity, IThe Iidentity Iof Ithe Iparties, IThe Itime Iand Iplace Ifor Idelivery 17. Which Iof Ithe Ifollowing Iis Itrue Iregarding Iacceptance? -In Ithe Iabsence Iof Iprovision Iin Ian Ioffer Iregarding Ihow Iacceptance Iis Ito Ibe Imade, Iacceptance Iis Ieffective Iupon Idispatch Iinto Ia Imailbox, IAcceptance Iis Inever Ieffective Iuntil Iit Iis Ireceived, IAn Ioffereor Imay Inot Iby Ilaw Ispecify Ithat Ian Ioffer Ican Ibe IacceptedIonly Iby Ifacsimile Ito Ia Istated Ifax Inumber Iand Ithat Iacceptance Iis Inot Ieffective Iuntil Iactually Ireceived, IAn Iofferor Imay Irevoke Ian Ioffer Iso Ilong Ias Ithe Irevocation Iis ImadeIbefore Ian Iacceptance Iis Ireceived. 18. To Iwhich Iof Ithe Ifollowing Idoes Iarticle I2 Iof Ithe IUCC Iapply? -The Isale Iof Igoods, IThe Irendering Iof Iservices, IThe Isale Iof Iland, IBoth Iof Ithe Isale IofIgoods Iand Ithe Irendering Iof Iservices 19. Which Iof Ithe Ifollowing Iis Igoverned Iby IArticle I2 Iof Ithe IUCC? -A Icontract Ifor Isale Iin Ia Icommercial Ibuilding, IA Icontract Isale Iof Ioffice Isupplies, IAnIemployment Icontract, IA Ilife Iinsurance Icontract - I avoids Irenegotiation Iof Itreaties Iby Iallowing Ithe Ipresident Ito Inegotiate ItradeIagreements Iand Ithen Isubmit Ithem Ifor Ian Iup Ior Idown Ivote Iby ICongress Iwith Ino Iamendments Ipermitted. - Treaty Iapproval Iauthority, IExecutive Iprivilege, IForeign Iaffairs Ipriority, IFast- trackInegotiating Iauthority Through Ithe Iprocess Iof Iblank , Ia Ination Ithat Iwas INOT Ian Ioriginal Iparty Ito IaItreaty Ican Ielect Ito Iparticipate Iin Ia Itreaty Iat Ia Ilater Itime. -Ratification, IAccession, ISigning, IApproval Exports Iare Icontrolled Iby Imeans Iof Iexport Iblank . -Duties, ILicenses, ISubsidies, ICustoms Ivalidation A Iproduct Iis Iblank when Iit Iis Isold Iabroad Ibelow Ithe Icurrent Iselling Iprice Iin ItheIexporter's Ihome Imarket Ior Ibelow Ithe Iexporter's Icost Iof Iproduction. -Subsidized, IDumped, IUnderpriced, IUndervalued, I is Ithe Iprincipal IU.S. Istatute Iaddressing Iunfair Iforeign Ipractices Iaffecting IU.S.Iexports Iof Igoods Ior Iservices. - Section I301 Iof Ithe ITrade IAct Iof I1974, ISection I502 Iof Ithe ITrade IAct Iof I1990, ITheIUnfair IExport ILimits IAct, IThe IInternational IControl IAct The INorth IAmerican IFree ITrade IAgreement Iprovides Ifor Ielimination Iof Ibarriers ItoItrade Ibetween Iwhat Icountries? - The IUnited IStates Iand IMexico Ionly., IThe IUnited IStates, ICanada, IMexico, Iand IBrazil., IThe IUnited IStates Iand Iall ISouth IAmerican Icountries., The IUnited IStates, ICanada, IandIMexico A Iblank Iis Icreated Iwhen Ia Igroup Iof Istates Ireduce Ior Ieliminate Itariffs IbetweenIthemselves Ibut Imaintain Itheir Iown Iindividual Itariffs Ias Ito Iother Istates. customs Iunion, ICaribbean IBasin IInitiative, Ifree Itrade Iarea, Imost Ifavored Ination Courts Iapply Ithe Iprinciples Iof Iblank I I I I Ito Idetermine Iwhich Icountry's Ilaws IshouldIbe Iused Ito Iinterpret Ian Iinternational Icontract. the IUnited INations ICISG, Iconflict Iof Ilaw, Iinternational Ilaw, Idomestic Ilaw A Icontract Idispute Iwhich Iis Iheard Iby Ia Icourt Iwithout Ireference Ito Ia Iprior IarbitrationIis Iknown Ias Ia(n) Iblank Ireview. -Appellate, IAd Ihoc, IArbitration, IDe Inovo Under Ithe Iprinciple Iof Iblank I, Ia Icourt Iwill Ienforce Ianother Icountry's IjudgmentsIunder Icertain Iconditions. -Comity, IHarmony, IAct-of-state, IConciliation I is Ia Iprocess Iused Imainly Iin Ithe Iarea Iof Ipublic Iinternational Ilaw Iwhereby Ia IthirdIparty, Ioften Ia Idisinterested Igovernment, Ibrings Ithe Iparties Itogether Iby IestablishingIcommunication Iand Iproviding Ia Isite Iwhere Ithe Iparties Ican Imeet, Ioften Iin Isecret. -Public Iinvolvement, IGood Ioffices, IInternational Iinvolvement, IBest Itransactions I damages Icompensate Ia Iparty Ifor Ilosses Ithat Ioccur Ias Ia Iforeseeable Iresult IofIthe Ibreach. -Incidental, IReliance, IRestitution, IConsequential Which Iof Ithe Ifollowing Iis Inot Ione Iof Ithe Ibasic Ielements Ifor Iformation Iof Ia IvalidIcontract? -Consideration, I Promissory Iestoppel, IAn Ioffer Iand Iacceptance, IA Ilegal Ipurpose A Ithird-party Ibeneficiary Iis Isomeone Iwho Iis Inot - a Ilegal Iand Irecognized Itype Iof Ibeneficiary., Iintended Ito Ibenefit Ifrom Ithe Icontract., IaIparty Ito Ithe Ioriginal Icontract., Iintended Ito Ienforce Ithe Icontract. Liquidated Idamages Iare Idamages Ithat - punish Ithe Ibreaching Iparty., Ifluctuate Iwith Ithe Imarket Iconditions., Iare Ian IestimateIof Ithe Idamages Ilikely Ito Ibe Isustained Ifrom Ithe Ibreach., Inone Iof Ithe Iabove An Iagreement Ibetween Itwo Iparties Ithat Iprovides Ithat Ithe Iseller Iwill Isell Iall Iof IaIproduct Ithat Ihe Iproduces Ito Ithe Ibuyer Iis Icalled Ia(n) -illusory Ipromise, Irequirements Icontract,, Ioutput Icontract, Ifulfillment Icontract Under Itraditional Icommon Ilaw, Ithe Iacceptance Imust Ibe Ithe Iblank of Ithe Ioffer.IEssential Iterms, IConsideration, IUnderstanding, IMirror Iimage Under Ithe Idoctrine Iof Iblank , Ia Icourt Imay Iinvalidate Ian Iagreement Iif Ione IpartyIhad Isufficient Iinfluence Iand Ipower Iover Ithe Iother Ias Ito Imake Igenuine Iassent Iimpossible. -Fraud, IMistake, IUndue Iinfluence, IDetrimental Ireliance Which Iof Ithe Ifollowing Idoes Inot Igenerally Imake Ia Icontract Ivoidable? -Fraud, IDuress, IUnilateral Imistake Iof Ifact, IMisrepresentation A(n) Iblank is Iany Iagreement Ito Iaccept Iperformance Ithat Iis Idifferent IfromIwhat Iis Icalled Ifor Iin Ithe Icontract - accord Iand Isatisfaction, Ianticipatory Irepudiation, Ifrustration Iof Ipurpose, ImutualIrescission Which Iof Ithe Ifollowing Iis Itrue Iregarding Ia Imistake Iof Ijudgment? - It Iis Ia Ivalid Idefense Ito Ienforcement Iof Ia Icontract., It Iis Inot Ia Ivalid Idefense Ito enforcement Iof Ia Icontract, IWhether Iit Iis Ia Ivalid Idefense Ito Ienforcement Iof Ia IcontractIdepends Iupon Ithe Isubstantiality Iof Ithe Imistake., IWhether Iit Iis Ia Idefense Ito Ienforcement Iof Ia Icontract Idepends Iupon: I(1) Ithe Isubstantiality Iof Ithe Imistake, I(2) Iwhether Ithe Irisks Iwere Iallocated, Iand I(3) Itiming. Which Iof Ithe Ifollowing Iis Ia Idoctrine Ithat Imay Iexcuse Ithe Igovernment Ifrom Iperformance Ion Ia Icontract Idue Ito Ilegislative Ior Iexecutive Iacts? - The Isovereign Iacts Idoctrine., IThe Ilegislative Iand Iexecutive Iacts Idoctrine., ITheIseparation-of-powers Idoctrine., IThe Igovernmental Iprivilege Idoctrine. Under Ithe Idoctrine Iof Iblank , Ia Icourt Imay Iorder Irestitution Iif Ione Iparty Ihas Ireceived Ia Ibenefit Ifor Iwhich Iit Ihas Inot Ipaid Iwhen Ithere Iwas Ino Icontract Ibetween ItheIparties. - mutuality Iof Iobligation, Ilaesio Ienormis, Iquantum Imeruit. I pre-contractual Iliability Under Ithe IUCC, Ia Ifailure Ito Iperform Iis Iexcused Iunder Ithe Idoctrine Iof - impossibility, Icommercial Iimpossibility, commercial Iimpracticability, IconsumerIimpracticability Under Ithe IConvention Ion IContracts Ifor Ithe IInternational ISale Iof IGoods I(CISG), IanIoffer Ibecomes Ieffective Iwhen - the Iofferor Isends Iit, Iit Ireaches Ithe Iofferee, Ithe Iofferee Ireads IitIthe Iofferee Ireplies UCC ISection I2-319 Iexpressly Iauthorizes Ithe Ibuyer Iand Iseller Ito Iallocate Ithe IriskIof Iblank between Ithem Ias Ithey Isee Ifit. -Damages, ISpecific Iperformance, IModification, ILoss When Ithe Iseller Iprovides Ithe Ibuyer Iwith Ia Idocument Ienabling Iit Ito Ipick Iup IgoodsIheld Iat Ian Iindependent Iwarehouse, Ithe Irisk Iof Iloss Ipasses Ito Ithe Ibuyer - when Ithe Igoods Iare Ipicked Iup Iby Ithe Ibuyer., Iwhen Ithe Icontract Iof Isale Iis Isigned,Iwhen Ithe Ibuyer Ireceives Ithe Idocument Ientitling Iit Ito Ipick Iup Ithe Igoods., Iwhen ItheIbuyer Ipays Ifor Ithe Igood A Icontract Iis Iblank if Iits Iterms Iare Iunduly Iharsh Ior Ioppressive IorIunreasonably Ifavorable Ito Ione Iside. -substantively Iunconscionable, Iprocedurally Iunconscionable, Iprocedurally Iimpracticable, Isubstantively Iimpracticable Which Iof Ithe Ifollowing Iis Ian Iexample Iof Ia Istatement Imade Iby Ia Isalesperson IthatIwould Ibe Iconsidered I“puffing”? - This Icar Iwill Iget I35 Imiles Iper Igallon., IThis Iis Ia Igenuine Idiamond Iring, IThis Iis IanIoriginal Iwork Iof Iart., This Icopier Iis Ithe Ibest Iin Ithe Ibusiness. 1. A Iconclusion Iarrived Iat Ithrough Ideductive Ireasoning Iis I(inductiveIis Iprobable) A. IprobableIB. Icertain C. I whimsical D. Ifarcical 2. The Irational Istarting Ipoint Ifor Iethics Iin Ian Iorganization Iis a. I At Ithe IbottomIb. I At Ithe Itop c. I At Ithe Ilevel Iof Iexecution d. I At Ithe Ilevel Iof Isupervisors 3. A corporation Iis Iowned Iby Ia Ilimited Inumber IofIshareholders. a. Public b. Private c. Close d. S 4. I combines Imediation Iand Inegotiation Ito Iarrive Iat IaIsuccessful Iresolution. a. Common Ilaw b. Criminal Ilaw c. Civil Ilaw d. Collaborative Ilaw 5. I is Ithe Ikey Ito Ideveloping Ian Iethical Iorganization. a. Profit Imaximization b. Value Imaximization c. Loyalty d. Organizational Iculture 6. When Iinterpreting Ithe Ilaw, Icourts Ilook Ifor I I a. guidance Ifrom Ithe Ipresident b. guidance Ifrom Ithe Igovernment c. guidance Ifrom Ithe Ilegislative IbranchId. I precedent 7. An Iaction Ithat Idoes Inot Iincrease Ishareholder Ivalue Iand Idoes Inot I should Ibe Irejected. a. IIncrease Icorporate IearningsIb. I Stand Iup Ito Ian Iethics Itest c. I Promote Icorporate Isocial Iresponsibility d. I Improve Idiversity 8. I duties Imay Ibe Ilevied Iif Ia Icountry Ichooses Ito Isell Iits Iproducts Iin Iother Icountries Ifor Ia Iprice Ithan Iin Iits Ihome Icountry. a. Customs b. Countervailing c. Tariff d. Anti-dumping 9. Under Icommon Ilaw, Ithe Iacceptance Iof Ia Icontract Ishould IreflectIthe of Ithe Ioffer. a. Essential Iterms b. Major ItermsIc. I Exact Iterms d. I Understanding 10. The Imost Iimportant Icharacteristic Iof Ia Iclosely Iheld Icorporation Iis Ithat . a. It Ihas Ia Ismaller I# Iof Ishareholders b. it Ihas Ia Ilarge Inumber Iof Ishareholders c. its Ishares Iare Inot Itraded Ion Ithe Istock Imarket d. its Ishares Iare Ilisted Ion Iat Ileast Itwo Istock Imarkets 11. U.S. Ibusiness Imust Icomply Iwith Ithe IForeign ICorrupt IPractices IAct, Iwhich Ibans , Ibut Inot payments. a. Grease; Ifacilitation b. Facilitation; Ibribes c. Facilitation; Igrease Id. IBribes; Ifacilitation 12. I damages Icompensate Ia Iparty Ifor Ilosses Ithat Ioccur Ias Ia Iforeseeable Iresult Iof Ithe Ibreach. a. Incidental b. Reliance c. Restitution d. Consequential 13. A Ibusiness Idecision Imay Ibe , Ibut Inot Ibe . a. Ethical; Ilegal b. Financially Iastute; Ilegal c. Environmentally Isound; IethicalId. I Legal; Iethical 14. I publishes Ievery Iyear Ia Iranking Iof Icountries Ibased Ion Iperceived Icorruption. 15. The Iobjective Iof damages Iis I to Icompensate Ithe Inon-Ibreaching Iparty Ifor Iany Iexpenses Iincurred Iin Ianticipation Iof Ithe Icontract Ibeing Ifulfilled. a. Compensatory b. Consequential c. Liquidated Id. I Reliance 16. I is Ia Iform Iof Iorganization Iprimarily Isuited Ifor Igroups Iof Iprofessionals. a. LLP b. LLC c. General Ipartnership d. S Icorporation 17. Manufacturing Iin Ithe Ihome Icountry Iand Imarketing Iin Iother Icountries Iis Icalled . a. Exporting b. Licensing c. Franchising d. Joint Iventure 18. I involves Ia Idegree Iof Icompromise, Ia Ispirit Iof Igive Iand Itake. a. Negotiation b. Arbitration c. Litigation d. Game Itheory 19. The Idecisions Iof Icourts, Itaken Itogether, Iis Ireferred ItoIas I blank I a. Civil Ilaw b. Common Ilaw c. Criminal Ilaw d. Statutes 20. Law Ithat Iprovides Iremedies Iwhen Ione Iindividual Iinjures IanotherIis Ithe Ilaw Iof Iblank . a. Torts b. Administration c. Criminality d. Federal 21. To Iprove Inegligence, Ian Iinjured Iparty Imust Iprove Ia Iduty Iof Icare Iand . a. Defamatory Istatement b. Breach Iof Ithe Iduty Ithat Icaused Idamages c. Communication d. Assault 22. Which Ione Iof Ithe Ifollowing Idoes Inot Igenerally Irender Ia IcontractIvoidable? a. Unilateral Imistake Iof Ifact b. Misrepresentation c. Fraud d. Duress 23. Contracts Ithat Iare Icontrary Ito Iestablished Ilaw Ior Ipublic Ipolicy Iare Iblank . a. Voidable b. Fraudulent Ic. IVoid d. I Valid 24. Contracts Iwhere Ione Iparty Iinsists Ion Iits Iconditions IareIcalled Iblank . a. IArbitrary IcontractsIb. I Adhesion Icontracts c. Unilateral Icontracts d. Division Icontracts 25. I damages Iare Ithe Ieconomic Ilosses Isuffered Iby Ione Iparty IasIa Iresult Iof Ithe Iother Iparty Ireneging Ion Ithe Icontract. 42. Those Iaffected Iby Ia Icompany’s Iactions, Isuch Ias Iemployees, Icustomer, IandIshareholders, Iare Ireferred Ito Ias . a. Emigrees b. Stakeholders c. Utilitarian’s d. Cohorts 43. International Iarbitration Iawards Iwill Ibe Ienforced Iby Ithe Convention. a. CISG b. Paris c. New IYork d. London 44. The Ivalue IChain Iconcept Iviews Ithe Iorganization Ias Ia Iset Iof and I I activities. a. Strategic; Itactical b. Tactical; IoperationalIc. IPrimary; Isupport d. I Primary; Isecondary 45. I are Ico-operative Iarrangements Ibetween Itwo Ior Imore Icompanies Ifor IaIspecific Ipurpose. a. Joint Iventures b. Strategic Ialliances c. Franchises d. Mergers 46. When Iowners Iof Ia Icorporation Iso Ithoroughly Imingle Itheir Iown Iaffairs Iwith ItheIcorporation’s, Ithat Ithey Iare Ino Ilonger Idistinct, Ia Icourt Imay . a. Rescind Ithe Iincorporation b. Dual-tax Ithe Iowners c. Pierce Ithe Icorporate Iveil Iof Iliability Iprotection d. Remove Ithe Idirectors 47. Singapore Iand IHong IKong Ifollow Ithe Iprinciple Iof . a. I I INational ITax IJurisdiction Ib. I Territorial ITax IJurisdiction c. Regional ITax IJurisdiction d. Local ITax IJurisdiction 48. Which Ione Iof Ithe Ifollowing Iis Itrue Iregarding Iacceptance Iof Ia Icontract? a. Acceptance Imust Ibe Idelivered Iby Iemail b. Acceptance Iis Ieffective Iwhen Ideposited Iinto Ia Imailbox c. Acceptance Imust Ibe Iby Ifax d. Acceptance Imust Ibe Iconveyed Iin Iperson 49. Small Icorporations Ican Iavoid Idouble Itaxation Iby Ielecting Ito Ibe Itreaty Ias Ia(n) I I corporation. a. C b. Close c. LLC Id. IS 50. A is Icreated Iwhen Itwo Ior Imore Ipersons Iagree Ito Iplace Itheir Iresources,Iskills, Iand Itime Iin Ia Ibusiness Iand Ito Ishare Iits Iprofits Iand Ilosses. a. ISole Iproprietorship Ib. I General Ipartnership c. Limited Ipartnership d. C Icorporation 51. A has Igeneral Ipartners Iand Ilimited Ipartners a. General Ipartnership b. Close Icompany c. S Icorporation d. Limited Ipartnership 52. S ICorporations Imay Inot Iown percent Ior Imore Iof Iany Iother Icorporation a. 30 b. 50 c. 60 Id. I 80 53. Countries Iwith Imonetary Iresources Iand Icapabilities Ito Iharness Inew Itechnologies,Irecognized Iby Ithe IOECD, Iare Ireferred Ito Ias . I(Section I5) a. The Ideveloped Iworld b. The Ideveloping Iworld c. Third-world Ination Istates d. Western Ination Istates Overview Develop Iability Ito Iexercised Iinformed IjudgmentIManage Ilegal Idimensions Iof Ibusiness ILaw/ethics Inot Iconstraints I– Iview Ishift Practice Istrategic Icompliance Imanagement Pursue Iopportunities Ito Iuse Ithe Ilaw Ito Iincrease Ivalue Icreated Iand IsharedIAllocate Iand Imanage Irisk Business Iethics Ito Iimprove Idecision-making I; Irecognition Iand Iapproach Listing Iof ICourse ISections Iand ISubsections IChoosing Ithe IProper IForm Iof IBusiness IEntity 1. To Iwhat Iextent Iwill Ithe Ipersonal Iassets Iof Ithe Ifounders Iand Iinvestors Ibe IexposedIto Ithe Iliabilities Iof Ithe Ibusiness? 2. Which Iformat Iwill Imake Ithe Ibusiness Imost Iattractive Ito Ipotential Iinvestors,Ilenders, Iemployees? 3. What Icost Iare Iassociated Iwith Icreating Iand Imaintaining Ithe Iorganization? 4. How Ican Itaxes Ibe Iminimized Iby Ibased Ion Ientity? 1. Forms Iof IBusiness IOrganizations a. Sole IProprietorship i. Simplest Iand Imost Iprevalent Iform Iin IUS ii. One Iindividual Iowns Iall Ithe Iassets Iand Iis Isolely Iand Ipersonally Iliable Ifor Idebts, Icontract Iobligations, Iand Itort Iliabilities. I “person IisIthe Ibusiness” iii. LP Iof Ia ILP Iassume Ino Iliability Ifor Ipartnership Idebts Ibeyond Ithe Iamount Iof Icapital Ithey Ihave Icontributed I– Ino Iright Ito Iparticipate IinImanagement Iof Ipartnership iv. Attractive Ito Iinvestors I– Ioften Iused Ito Iraise Icapital I! I(attract Iinvestors Iwith Ithe Iassurance Iof Ilimited Iliability Iis Ithe IMAINIadvantage Iof Ilimited Ipartnership) v. LP Idoes Inot Iexist Iuntil Icertificate Iof ILP Ihas Ibeen Ifiled Iwith ItheIappropriate Istate Iagency. vi. Courts Itake Istrict Iapproach Ito Ithe Iformal Irequirements Iof ILP Istatus 1. If Iit Iruns Iafoul, Icourts Itreat Iit Ias Ia Igeneral IpartnershipIinstead. f. Corporations i. Organization Iauthorized Iby Istate Ilaw Ito Iact Ias Ilegal Ientity IdistinctIfrom Iits Iowners ii. Own Iname Iand Ioperates Iwith Ispecified Ipowers Ito Iachieve Ispecific Ipurpose Iset Iout Iin Iits Icharter I(aka Iarticles Iof Iincorporation/cert. IofIincorp.) iii. Owned Iby Ishareholders I(stockholders); Ipurchased Iownership Istake iv. Board Iof Idirectors: Ielected Iby Ishareholders, Icentral IdecisionImaking Iauthority v. B.o.D. Iemploys Iofficers Ito Imanage Ithe Iday-to-day Ioperations IofIbusiness vi. Most Iattractive Ifeature: ILiability Iof Iits Ishareholders Iis Ilimited ItoIjust Itheir Iinvestments! vii. Corporation Iitself Iresponsible Ifor Iliabilities I(exception: IpiercingIthe Iveil Itheory) viii. Cap Ion Iliability Ipermits Ientrepreneurs Iand Iinvestors Ito IundertakeIrisky Iventures Iw/o Iworry Ithat Ithey Iwill Ilose Ipersonal Iassets ix. Ability Ito Iraise Isignificant Icapital Iby Iselling Ishares x. Perpetual Ilife: Ideath Ior Iselling Iinterest, Ientity Icontinues Ito Iexist ItoIconduct Ibusiness xi. 2 Ilevels Iof Itaxation: Icorporate Iand Ishareholder Iunless Ielects IS-Istatus xii. C ICorporation I– I2 Ilevels Itax Ion Iincome Iby Ibusiness Iand IdividendsIby Ishareholder xiii. S ICorporation I– Itaxed Ias Ipass Ithrough; Icompany Inot Itaxed;Ishareholders Ipro Irata 1. Must Ihave Ino Imore Ithan I100 Ishareholders 2. Only I1 Iclass Iof Istock 3. Corporation Imay Inot Iown I80 Ipercent Ior Imore Iof Iany IotherIcorp 4. Must Ifile Itimely Ielection Ito Ibe Itreated Ias Ian IS-corp. g. Close/Closely IHeld ICorps i. Close ICorp 1. Some Istates, Iextra Ioperating Iflexibility 2. Elected Iin Icharter Ias Ia Iclose Icorp 3. Small Inumber Iof Ishareholders I(typically Inot Imore Ithan I30) 4. Significant Idepartures Ifrom Iformalities Irequired IofItraditional Icorps Iafforded Iby Istate Ilaws ii. Closely IHeld ICorp 1. A Inumber Iof Ishareholders 2. No Imarket Ifor Iits Istock 3. Court Iimposes Igreater Iduty Iof Iloyalty Iand Icare Iup IonIdirectors Iand Imajority Ishareholders h. LLC i. Tax Iadvantages Iof Ipass Ithrough Iwith ILL Iadvantages Iof Icorp ii. Founders Iand Iinvestors Iflexibility Ito Ishape Itheir Iduties IandIresponsibilities Iby Icontract iii. Charter Imust Ibe Ifiled Iwith Istate Iagency iv. Name Imust Iinclude ILLC Ior Ithe Iwords v. Owners Iare Icalled Imembers vi. Rights, Iobligations, Iand Ipowers Iare Iset Iforth Iin IoperatingIagreement vii. Members Ielect Imanagers viii. Managers Iappoint Ithe Iofficers ix. State Ilaw Icorps Iand Ipublicly Itraded Ientities Iare Itaxed Ias Icorps x. LLCs Iare Inot Itaxed Iat Ieh Ifirm Ilevel Iunless Ithey Ielectt Io Ibe Itaxed IasIcorp xi. Taxed Ias Ipartnerships xii. Controlling Ipersons Iin ILLC Ican Ilimit Itheir Iliability Ito Ithe IamountIinvested xiii. Members Ican Iparticipate Ifully Iin Imanagement Iof Ibusiness xiv. Flexible Iallocations Iof Iprofits/lossees xv. Lack Iof Irestrictions Ion Ishareholders I& Imore Ithan I1 Iclass IofIsecurities xvi. No Ilimit Ito Inumber Iof Imembers Iin ILLC xvii. Investors Ican Ibe Icorps, Ipartnerships, Iand Iforeigners xviii. Disadvantage: Icost Iof Ipreparing Ia Ioperating Iagreement i. Income ITax IConsiderations i. Best Ito Iunderstand Ithe Igeneral Iissues Ithan Istrive Ifor Ia IdetailedIknowledge ii. Cash IDistributions i. Partnerships, ILLCs, IS Icorps Irarely Iused Iif Ibusiness Iintend Ito IraiseImoney Ifrom Iventure Icapitalists ii. C ICorp Iis Iusually Iused Ifor I2 Ireasons 1. Most Iventure Icapital Ifirms Iraise Imoney Ifrom Ilarge Iinstitutional Iinvestors I(pension Ifunds, Iuniversity Iendowments Ietc) INonprofits Iinvest Iin Isecurities Iand IreceiveItheir Iincome Iand Icapital Igains Itax-free Ionly Iif Ithe Iissuer Iof Ithe Isecurities Iare Inot Ia Ipass-through Ientity. 2. Most Istart Iups Iwant Ithe Iability Ito Isell Isecurities Ito Ioutside Iinvestors Iat Isignificantly Ihigher Iprice Ithan Iwas Ipaid Iby Ithe Ifounders; I2 Iclasses Iof Istock: Icommon Istock Ito Ifounders IandIpreferred Istock Ito Ioutside Iinvestors I(S ICorp Icannot Ido Ithis Ib/c Ithey Ican Ionly Ihave I1 Itype Iof Istock) k. Agency Ilaw Iand Ilimited Iliability i. Individuals Iacting Ion Ibehalf Imust Imake Iit Iclear Iwhether Ithey Iare Iacting Ion Itheir Iown Ior Ias Iagents Iof Iseparate Ilegal Ientity. IFailure ItoIdo Iso Ican Iresult Iin Ipersonal Iliability Ifor Ithe Imanager. l. Partnerships Imechanics i. Can Ibe Icreated Iwith Inothing Imore Ithan Ia Ihandshake Iand Ia IgeneralIunderstanding Ibetween Ithe Ipartners; I“meeting Iof Ithe Iminds” ii. No Iminimum Iamount Iof Icapital; Iusually Icontribute Icash IorIproperty Ior Iagree Ito Iprovide Ipersonal Iservices iii. May Ior Imay Inot Ibe Iwritten, Ihave Iown Iname; IIf Inot Iwritten, IstateIlaws Iwill Idetermine Iwhether Ipartnership Ior Iagency. iv. Written Iagreement Ican Iprevent Ifuture Imisunderstandings; IdisputeIresolution Imechanism I(such Ias Iarbitration) v. Written Iagreement Iincludes 1. Term Iof Ipartnership Iexistence 2. Capital Icharacteristics Iof Ipartnership 3. Division Iof Iprofits/losses 4. Partnership Isalaries/withdrawals 5. Duties Iof Ipartners 6. Consequences Iif Ia Ipartner Idecides Ito Isell Ihis/her Iinterest IorIbecomes Iincapacitated/dies. 7. Name Iof Ipartnership I& Ilocation vi. General IPartnership 1. Direct Iowner Imanagement/ Icontrol Iof Ibusiness 2. Each Ipartner’s Iassets Iare Ivulnerable 3. Each Ipartner Imust Ihave Ivoice Iin Idecisions Idue Ito Iasset Irisk 4. Partnership Istatement I(Section I105 Iand I303 Iof IRevisedIUniform IPartnership IAct I(RUPA) I1997) 5. Both Iliable Ifor Idebts, Iduty Iof Iloyalty, Iduty Iof Icare, IgoodIfaith Iand Ifair Idealing 6. RUPA ILoyalty Iobligations: a. Accounting Ito Ithe Ipartnership Iand Iholding Ias ItrusteeIfor Iit Iany Iproperty, Iprofit, Ior Ibenefit b. Refraining Ifrom Idealing Iwith Ithe Ipartnership Ias Ior Ion Ibehalf Iof Ia Iparty Ihaving Ian Iinterest Iadverse Ito ItheIpartnership c. Refraining Ifrom Iengaging Iin Igrossly Inegligent IorIreckless Iconduct, Iintentional Imisconduct, Ior Ia Iknowing Iviolation Iof Ithe Ilaw. 7. Dissolution Iof Ia IGP: Iwhen Ithe Ipartners Ino Ilonger Icarry IonIthe Ibusiness Itogether; Ibecomes Iunlawful; Icourts Ihave Ipower Ito Idissolve m. LP IRequirements i. Same Irules Ithat Igovern Igeneral Ipartnerships Ialso Igovern ILPs ii. Additional Irules 1. LP Icertificate Ifiled Iwith Istate 2. Specifically Istate Ilimited Ior Iwill Ibe Itreated Iat IGP. iii. Uniform ILimited IPartnership IAct 1. Person Iwho Icontributed Icapital Ito Ia Ibusiness Ierroneously Ibelieving Ithat Ithey Iwere Ibecoming Ilimited Ipartners Iin Ia ILPIwill Inot Ibe Iliable Ias IGP Iif, Iupon Iascertaining Ithe Imistake, Ithey Ipromptly Irenounce Itheir Iinterest Iin Ithe Iprofits Iof Ithe Ibusiness. 2. LP Iis Iliable Ionly Ito I3rd Iparties Ithat Iboth Itransacted IbusinessIwith Ithe ILP Ibefore Ithe Icertificate Iof ILP Iwas Ifiled Iwhen I3rdIparty Ibelieved Ia IGP. 3. Limited Iliability Iunless Ihe/she Itakes Ipart Iin Ithe Icontrol Iof Ithe Ibusiness. I(May Ibe Iliable Ibeyond Itheir Ioriginal IcapitalIinvestment) 4. Limited Ipartner Imay Icontribute Imoney Ior Iproperty Ito ILP, Ibut Igenerally Inot Iservices. I(name Icannot Iappear Iin Iname IofIpartnership Iw/o Iincurring Iunlimited Iliability). n. Incorporation i. Corporate Istatutes Iof Ieach Istate Iset Ithe Isteps Ithat Imust Ibe Itaken ItoIestablish Ia Icorp. ii. Model IBusiness ICorporation IAct I– Iannotated Iuniform IstatuteIprepared Iby Iacademic Iand Ipractitioners iii. Corporate Idomicile: Istate Iunder Iwhose Ilaw Ia Icorporation Iis Iformed p. Management Iof Ithe Icorporation i. Control Iis Iapportioned Iamong Idirectors, Iofficers Iand Ishareholders 1. Directors I– Iguardians Iof Icopr 2. Officers I– Iday-to-day Imanagers 3. Shareholders I– Ido Inot Iparticipate Iin Imanagement Ibut IelectIdirectors; Ialso Imust Iapprove Icertain Imajor Itransactions q. Structural Ichanges Iin ICorporation i. Reorganization Ito Ithe Iend Iof Ia Icorp Ias Ia Iseparate Ientity ii. Not Imade Ieasily iii. Mergers Iand Isale Iof Iassets Imust Ibe Iapproved Iby Iboth Iboard IofIdirectors Iand Ishareholders. r. Tender Ioffers Iand Istock Irepurchases i. One Icompany Imay Igain Icontrol Iof Ianother Iby Ibuying Ia Imajority IofIits Ivoting Ishares Irather Ithan Imering Ior Ipurchasing Iassets ii. Tender Ioffer I– Ipublic Ioffer Ito Iall Ithe Ishareholders Ito Ibuy ItheirIshares Iat Ia Istated Iprice I(“bidder”/”raider”) iii. Shareholders Iare Ifree Ito Ireject Ior Iaccept Iwithout Ithe Iapproval Iof ItheIboard I“takeover” iv. LBO I– Ileveraged Ibuyout I– Ia Istock Ipurchase Ifinanced Iby Idebt 2. International ILaw Iand ITransactions a. National ILegal ISystem i. Common ILaw I– Iused Iin Icountries Ithat Iare Ior Iwere IBritishIterritories Ior Icolonies 1. Case Ilaw Iand Iprecedents 2. Existence Iof Idifferent Ilevels Iof Icourts Ito Idefine Iand IfurtherIrefine Ithe Ilaw 3. Principle Iof Iequity 4. British Icommon Ilaw Idoes Inot Isue Ijuries Iin Icivil Icases I(unlike Ithe IUS), Ino Iclass-action Ilawsuits, Iprohibits IpaymentIof Ilawyers Ion Icontingency Ifee Ibasis a. 2 Itypes Iof Ilawyers i. Solicitors I– Iallowed Ito Iperform IlegalIservices Ioutside Icourt ii. Barristers I– Ionly Itype Ithat Iargues Iin Icourt ii. Civil ILaw I– Ibased Ion IRoman Ilaw Ias Iconsolidated Iin ICorpus IJurisICivilis 1. Relies Iprimarily Ion Istatutory Ilaws Iin Ia Iunified Icode a. Draw Iline Ibetween Iprivate Ilaw Iand Ipublic Ilaw b. Some Icountries Ihave Idifferent Icourts Ifor Iprivate IandIpublic/ Iadmin Iand Icriminal iii. Other ILaw I– Ibased Ion Ireligion Ietc 1. Ex: ISharia Ilaw Iin IIslamic Irules Iand Ilaws Ithat IregulateIMuslim Ilife 2. Islamic Itrade Iand Icommerce Iis Igoverned Iby IZakat, IRiba,Iand IGharar. 3. Classical IHindu Ilaw I“personal Ilaw” Imarriage, Idivorce,Iinheritance/ Isuccession b. Sources Iof IIntl ILaw i. Different Ilegal Iprinciples Ithat Itogether Iconstitute Ithe Ilaws Iof ItheIinternational Icommunity ii. Divided Ibetween Ipublic Iand Iprivate 1. Public I– Igoverns Ithe Irelationships Iamong Ination-states 2. Private I– Igoverns Ithe Irelationships Ibetween Iprivate IpartiesIengaged Iin Itransactions Iacross Inational Iborders iii. Treaties 1. Intl Irules Iof Ilaw Iset Iforth Iby Iwritten Iagreements Ibetween IorIamong I2 Ior Imore Icountries I(treaties, Iconventions, Ipacts, Iprotocols, Iaccords) 2. Consent Ito Ienter Iis Iexpress Inot Iby Isigning Ibut IthroughIratification Ior Iaccession. 3. Ratification Iis I2 Ifold: a. National I– Igoverned Iby Ilaws Iof Ination b. International I– Igoverned Iby Itreaty Iitself 4. Original Ination Iin Iparty Ionly Iallowed Ito Iratify 5. Accession I– Ia Ination Ithat Iwas Inot Ioriginally Iparty Ican IelectIto Iparticipate Iin Itreaty 6. Disputes Idecided Iby Inational Icourts iv. Other ISources 1. Customary Iinternational Ilaw I– Icustomary Ipractice a. Customary Ilaw Iis Ianalogous Ito I“establishedIpractice” Iand I“commercial Iusage” b. Cusomary Ipractices Iarises Ifrom Icontinuous IpracticeInot Ilegislative Iaction c. National ILaws i. Foreign IOwned IBusinesses Iand IIntl IBusiness IActiviities 1. Sometimes Ipass Ilaws Ithat Idirectly Iaffect Iforeign- ownedIbusiness Ioperation ii. Admin IAgencies Iand IInteragency ICommittee 1. Admins Iresponsible Ifor Itrade Ilawas a. US ITrade IRepresentative I(USTR) I– Idevelopment IofIUS Itrade Ipolicy Iand Ithe Inegotiation Iof Itrade Iagreements Iwith Iother Icountries; Ipolicy Idecisions Iconcerning Ithe Ioperation Iof Iagreements b. Department Iof ICommerce c. Department Iof IState d. Department Iof ITreasury e. US IInternational ITrade ICommission f. US ICustoms Iand IBorder IProtection/ IHomelandISecurity iii. Exports 1. EAA Iof I1979 I– Iprimary Irestriction Ion IUS Iexports; IexpiredIin I1989 Ibut Iperiodically Ireauthorized Iin IAugust I2001. a. Protect INatl Isecurity, Icarry Iout IUS Iforeign Ipolicy, Ienforce IUS Inuclear Inonproliferation, Ior Iprevent ItheIexport Ithat Iare Iin Ishort Isupply. 2. Omnibus ITrace Iand ICompetitiveness IAct Iof I1988- Iremoved Imany Icontrols Ion Iexports Idue Ito Itrade Ideficit 3. Certain Icategories Iof Icommodities Iand Itech Idata Icannot Ibe Iexported Iwithout Ian Iexport Ilicences Ifrom ICommerce IDept’sIBureau Iof IExport IAdmin. a. License Ibased Ion Inature Iof Iitem, Icountry Ito Iwhich IitIis Ito Ibe Ishipped, Ithe Iforeign Iconsignee, Iand Ithe Iuse Ito Iwhich Iit Iwill Ibe Iput 4. MNCs I– Ipublic Icompanies Ion Iglobal Iscale IwithoutIsignificant Ities Ito Iany Ione Ination/region a. Size Iand Ipower Icreate Iethical Iissues Irelated Ito Iexploitation Iof Iboth Inatural Iand Ihuman Iresources; Ioften Iseem Ithreatening Ito Iless- Ideveloped Icountries 5. Unfair Iforeign Ipractices a. Section I301 Iof ITrade IAct I1974 I– Iprincipal IstatuteIaddressing Iunfair Ipracticing Iaffected IUS Iexports i. Authorizes IUSTR Ito Iinvestiage Ialleged Iunfair Ipractices Iof Iforeign Igovt Ithat IimpedeIUS Iexports iv. Imports 1. May Iviolate Itrade Iagreements IwithIUS 2. Unjustifiable Iand Iburden/restrict IUSIcommerce a. OTCA Iof I1988 I– Icreated ISuper I301 Iprogram Ithat Irequired IUSTR Ito Idraw Iup Ia Ilist Iof Iforeign Igovts Iwho Ipractices Ipose Ithe Imost Isignificant Ibarriers Ito IUS Iexports Iand Iimmediately Icommence ISection I301 Iinvestigations 1. Tariffs Iis Ithe Ibasic Itool Ifor Ilimiting Iimports Ito IprotectIdomestic Iindustries a. Most Iare I“ad Ivalorem Itariffs” I– Iimporter Imust Ipay IaIpercentage Iof Ithe Ivalue Iof Ithe Iimported Imerchandise 2. US Iaccepted Ian Iinternationally Iharmonized Itariff IsystemI(HTS) Ischedule a. 2 Ibasic Irates Iof Iduty: Imost Icountries I& Iless IfavoredIcountries b. Not Ionly Iby Icountry Iof Iorigin Ibut Ialso Ithe Iarticle’sItariff Iclassification. 3. Customs Iand IBorder IProtection a. Based Ion Ivaluation I(value Iof Iarticle Iis Ithe Itransaction Ivalue Iwhich Iis Iindicated Ion IsalesIinvoice) 4. Preferential Itariffs Ifor Iimports Ifrom Icertain Icountries a. Generalized ISystem Iof IPreferences I(GSP) I– Iprogram Ideveloped Iby Ithe Iindustrialized IcountriesIto Iassist Ideveloping Inations Iby Iimproving Itheir Iability Ito Iexport b. Certain Iproducts Ias Ieligible Ifor Iduty- Ifree ItreatmentIif Ithey Iare Iproduced Iin Ideveloping Icountries Idesignated Ias Ieligible Ibeneficiaries Iof Ithe Iprogram. i. Duty Ifree Ionly Iif I35% Ior Imore Iof Ithe IvalueIwas Iadded Iin Ian Ieligible Icountry ii. If Icompany Ibegins Ito Ibe Isufficiently Icompetitive, Ipresident Ican Iremove IthemIreferred Ito Ias I“graduation” 5. Import IRelief ILaws i. Bilateral IAgreements I– Ilimited Iin Isubject Imatter 1. Tarrifs, Itaxes, Iintellectual Iproperty ii. Regional I& IMultilateral Iagreements I(ie INorth IAmerican IFree ITradeIAgreement Iand IWorld ITrade IOrganization) iii. NAFTA I– Itrilateral Iagreement; Igradual Ielimination Iof Iall Ibarriers ItoItrade Ibetween IUS, ICanada, IMexico; Ifree Icross- border Imovement Iof Igoods/services 1. Largest Ifree Itrade Izone 2. Approved INov I17, I1993, Iin Ieffect Ion IJan I1, I1994 3. Mexico Irolled Iout Ithe Ielimination Iof Itariffs Ion IA,B.CIcategories I1994, I1998, I2003 4. US Ieliminated Imajority Iof Itariffs Ion IMexico IJan I1, I1994 5. Accord Inational Itreatment Ito Igood Iof Iother Inations I(GATT)IArticle IIII 6. Prohibits Inew Irestrictions Ion Iinvestment Iand Ion Itrade IinIservices 7. Major Iprovisions Ifor Ispecific Iindustries Isuch Ias Iagriculture,Itelecommunication, Ienergy 8. Certificates Iof Iorigin Irequired Ion Iall Igoods Ibeing Iexported;I“originating Igood” 9. Provides Iprotection Iand Ienforcement Iof Iintellectual Iproperty Irights Iand Iattempts Ito Iensure Ithese Irights Iare InotIbarriers Ito Itrade a. Berne IConvention Ifor Ithe IProtection Iof ILiterary IandIArtistic IWorks I(copyrights) b. Paris IConvention Ifor Ithe IProtection Iof IIndustrialIProperty IRights I(patents) 10. Explicity Iprotects Ienforceability Iof IUS IenvironmentIregulations a. Includes Imechanism Ifor Isanctions Iif Ione Ifails ItoIenforce Iit’s Iown Ienvironmental Ilaws b. Commission Iof IEnvironmental ICooperation ItoIaddress Ienvironmental Idisputes 11. Efforts Ito Ibuild IFTAA I(Free ITrade IArea Iof Ithe IAmericas)Ihas Ibeen Istalled Isince I2005 iv. WTO I– IWorld ITrade IOrganization 1. Successor Ito Ithe IGATT I– IGeneral IAgreement Ion ITariffs IandITrade 2. Est I1/1/1995 Iafter Iconclusion Iof IUruguay IRound Iof IGATTImultilateral Itrade Inegotiations 3. As Iof I2008, I153 Imembers, Iand Ianother I30+ Iwaiting Ito IjoinI(including IRussia) v. GATT 1. Had Iprofound Ieffect Ion Itrade Iwhen Iit Iwas Itogether 2. Formed Iin I1947 3. Uruguay IRound I - Imost Iambitious IGATT Iround Iever Iheld a. 117 Inations Irepresented b. Agreed Ito Ireduce Itariffs Iby Iaverage Iof I1/3rd Iover I6Iyears c. Reduced Iagriculture Itariffs Iby I36% Iin Iindustrial IandI24$ Iin Ideveloping Inations d. 1st Itime Iagriculture, Iservice, Itextiles, IintellectualIproperty Irights Iand Iinvestment Iservices Iwere Icovered Iby Iinternational Irules Iof Ifair Itrade! e. 1st Itime Iprotected Ithe Iright Iof Iservice- sector Icompanies Ito Ioperate Ion Iforeign Isoil Ifree IofIdiscriminatory Ilaws. vi. Basic IPrinciples Iof Ithe IWTO 1. Requires Imember Istates Ito Iparticipate Iin IMultilateral ITradeIAgreements i. 14 IAgreements Ion ITrade IIN IGood I( IGATTI1994) ii. General IAgreement Ion ITrade IIn IServicesI(GATS) iii. Agreement Ion ITrade-Related IAspects IofIntellectual IProperty IRights I(TRIP) iv. Understanding Ion IRules Iand IProceduresIGoverning Ithe ISettlement Iof IDisputes I(DSU) v. Trade IPolicy IReview IMechanism I(TPRM) b. 6 IBasic Iprinciples Iundergird IGATT I& IWTO i. Most IFavored INation I(MFN) Itreatment ii. Bound Itariffs iii. National Itreatment iv. Gradual Ifreer Itrade Ithrough Inegotiation v. Fair Icompetition vi. Encouragement Iof Idevelopment IandIeconomic Ireform 2. Most IFavored INation I(MFN) i. Foundation Iof Icurrent Isystem ii. Each IWTO Imember Imust Iaccord Ito Iall IotherImember Icountries Itariff Itreatment Ino Iless Ifavorable Ithan Iit Iprovides Ito Iany Iother Icountry 1. Example: IUS Iagrees Ito Ilower Iits Itariff Ion Iimports Ifor Ia Icountry, Iit Imust Igrant Ithe Isame Itreatment Ito IallIother IWTO Imembers. iii. Theory Ibehind Iit: Iworld Itrade Iwill Ibe Ienhanced Iif Icountries Iavoid IdiscriminatingIamong Ithemselves Icreating Iblocs b. Encourages IRegional Ieconomic Iintegration Iand Iparticipation Iin Ifree Itrade Iareas Iand Icustoms Iunions i. Customs IUnion I– Iestablishment Iof IaIcommon Itariff Ifor Iall Iother Istates 3. Bound ITariffs a. Each Itime Iit’s Ireduced, Iit’s Ibound; Imeaning IitIcannot Ibe Iraised Iagain 4. National ITreatment a. Member Imay Inot Idiscriminate Iagainst Iimported Iproducts Iin Ifavor Iof Idomestically Iproduced I“likeIproducts” b. Like Iproduct Iis Idone Ion Icase-by-case I by Iexamining i. The Iproduct’s Iend Iuses Iin Ia Igiven Imarket ii. Consumers’ Itastes Iand Ihabits iii. Product’s Iproperties, Inature, Iand Iquality vii. Other IGATT I& IWTO IPrinciples 1. NTBs I– Inontariff Ibarriers Iin Itrade I– Imeans Iof IprotectingIdomestic Iindustries Ithreatened Iby Iimport Icompetition a. Regulated Iby IAgreement Ion ITechnical IBarriers ItoITrade 2. SPS IAgreement I– IAgreement Ion Ithe IApplication Iof ISanitaryIand IPhytosanitary IMeasures- Iadopted Ias Ipart a. Intl ITransactions i. Businesses Ican Iestablish Ia Ipresence Iin Ia Iforeign Icountry Ito Isupervise/manage Isales Iwith Ilittle Ior Ino Iinvestment Iby Isetting Iup IaIliaison, Irepresentative Ior Ibranch Ioffice. ii. Scope Iof Ipermissible Iactivities, Icapital Irequirements, Iand ItaxIliabilities Iof Ieach Iform Ivaries Iwith Ilegal Ischeme Iof Ihost Ijurisdiction. iii. Greater Ipermission I= Imore Istringent Ithe Icapitalization Iand ItaxationIrules 1. Typically Ijust Irep I& Iliaison Ioffice, Ino Imanufacturing IandIlimited Isales Isupport Iand Imarketing iv. In Ilimited Ior Ino Iprovision Icountries 1. Choose Ibetween Iuse Iof Ian Iagent Ior Idistributor, Ior 2. A Ibranch Ior Isubsidiary v. Investing IAbroad 1. US IFirms Ishould Iconsider Ithe Ifollowing a. Assess Itheir Iinvestment Igoals b. Consider Ithe Ieconomic, Ipolitical, Igeographic, IlegalIand Ilabor Iconditions Iin Ithe Ihost Icountry i. Predictability, Iuniformity, Iand IevenhandedIenforcement Iof Ilaw Iand Icourts ii. Speedy, Iefficient, Iinexpensive? iii. Reliable Icourt Ior Idispute Isystem Ifor IcontractIenforcement? c. Address Iany Ifinancial Iissues I(like Icurrency, IprojectIcapitalization, Iand Itaxation) 3. Contracts I– Ian Iagreement Ibetween I2 Ior Imore Icompetent Iparties Ithat Icourts IwillIenforce Ithe Ipromise Ior Iset Iof Ipromises a. Basic IRequirements Iof Ia Icontract i. Agreement ii. Consideration I– Isomething Iof Ivalue Ithat Isupports Ithe Ipromises iii. Capacity I– Iability Ito Ienter Iinto Icontract iv. Legality I– Ipurpose Iand Imeeting Iof Ithe Iminds v. Promissory IEstoppel b. Precontractual ILiability Ifor Ifailure Ito Inegotiate Iin Igood Ifaith c. Unconscionability d. Genuineness Iof Iassent e. Statute Iof IFrauds f. The IParol IEvidence IGuide g. Changed ICircumstances h. Contract IModification i. Discharge Iof IContract j. Duty Iof IGood IFaith Iand IFair IDealing k. Third-Party IBeneficiaries l. Remedies m. Contracts Irelating Ito Imergers Iand Iacquisitions 4. Sales, ILicensing, Iand IE-Commerce a. Article I2 Iof Ithe IUCC b. Software ILicenses c. Electronic IContracts: IThe IUniform IElectronic ITransactions IAct Iand IE-SignIAct d. Contract Iformation e. Battle Iof Ithe IForms f. Statute Iof IFrauds g. Duty Iof IGood IFaith Iunder IThe IUCC h. Warranties i. Magnuson-Moss IWarranty IAct j. Right Ito IReject Inonconforming Igoods k. Allocation Iof IRisk Iof Iloss l. Unconscionability m. Commercial Iimpracticality Iunder IThe IUCC n. Damages o. Specific IPerformance 5. Product ILiability a. Theories Iof IRecovery b. Litigation IStrategy Iand Ithe Iavailability Iof IPunitive Idamages c. Definition Iof Iproduct d. What Imakes Ia Iproduct Idefective? e. Who Imay Ibe Istrictly Iliable Ifor Iproduct Idefects? f. Successor, IMarket-Share, Iand IPremises ILiabilityha g. Product Iliability Iclass Iactions h. Common Ilaw Idefenses i. other Ilegislative Ilimits Ion Iliability j. Tobacco, IGuns Iand IBig IFood k. Problems Iwith Ithe IProduct Iliability Isystem Iand Ithe Irestatement I(third)Iapproach Ithe Idesign Idefects Iand Ifailures Ito Iwarn LEARNING IOUTCOMES 1. Discuss Ithe Iadvantages Iand Idisadvantages Iof Iforms Iof Ibusiness Iorganization 2. Review Ithe Ibasic Itax Itreatment Iof Iforms Iof Ibusiness 3. Describe Ihow Ipartnerships Iand Icorporations Iare Istructured 4. Recognize Ihow Ipower Iis Iallocated Ibetween Ishareholders Iand Ithe Idirectors Iof IaIcorporation 5. Discuss Ithe Icommon Ilegal Isystems Iused Iby Ithe Iworld’s Icountries 6. Examine Ithe Ivarious Isources Iof IIntl Ilaw 7. Describe Ihow Inat’l Ilaws Iof Ihome Iand Ihost Icountries Iare Iused Ito Iregulate ItheIactivities Iof Imultinational Icompanies. 8. Review Ithe Ilegal Iissues Iinvolved Iin Iintl Ibusiness Itransactions 9. Discuss Ithe Ielements Inecessary Ifor Ia Ivalid Icontract 10. Explain Ithe Idoctrine Iof Ipromissory Iestoppel Iand IUnconscionability 11. Discuss Ithe Ineed Ifor Igenuine Iassent 12. Describe Ithe Istatute Iof Ifrauds 13. Recognize Ithe Iremedies Ifor Ibreach Iof Icontract 14. Explain IArticle I2 Iof IUCC 15. Discuss Ithe Ilaws Iof Iecommerce 16. Describe Ithe Ispecial Iwarranty Iprovisions Iof IUCC 17. Review Iexcuses Iand Iremedies Ifor Inonperformance 18. Discuss Ithe Iprimary Itheories Iof Irecover Ion Iwhich Ia Iproduct Iliability Iclaim Ican IbeIbrought 19. Review Iwho Imay Ibe Iliable Ifor Idefective Iproducts 20. Describe Ithe Idefenses Ito Ia Iproduct Iliability Iclaim 21. Discuss Ithe IRestatement IApproach Ito Idesign Idefects Iand Ifailures Ito Iwarn.