IBT 3: International Sale of Goods I: Choice of Law

What is an international sale of goods?

Sale between parties in different countries involving movable goods

Why are international sales riskier than domestic sales?

different laws, language barriers, jurisdiction issues

What are the two ways to determine applicable law?

uniform law (e.g. CISG), conflict of laws (private international law)

What is private international law (PIL)?

Rules to determine which national law applies

What is the lex fori principle?

Court applies its own conflict of law rules

What is party autonomy?

Parties can choose applicable law

What does Rome I regulate?

Law applicable to contractual obligations

Does Rome I apply to all matters?

No (excludes tax, administrative matters)

What does Art. 3 Rome I provide?

Freedom of choice of law

Can parties choose foreign law?

Yes

What is the rule for sale of goods if no choice is made?

Law of seller’s habitual residence

What is “habitual residence”?

Place of central administration or main business

What rule applies to consumer contracts?

Law of consumer’s habitual residence

When does this rule apply?

When does this rule apply?

What happens if no law is chosen?

Court applies Rome I rules