Question

Does the CISG provide adequate protection to U.S. exporters in their dealings with buyers in developing economies? 

Answer 1

Firstly I would like to explain whait is COGS

The CISG went into effect on January 1, 1988, with the United States as a party.

The United Nations Convention on Contracts for the International Sale of Goods 1980 (CIGS) is the main convention for the International Sale of Goods. The CISG is an international set of rules designed to provide clarity to most international sales transactions involving the sale of goods.

The purpose of the CISG is to make it easier and more economical to buy and sell raw materials, commodities and manufactured goods in international commerce.

Buyer have certain protections under the CISG.

The buyer’s remedies under the Convention can be divided into the following categories; requesting the seller to perform his or her contractual obligations under Art 46; fixing an additional period of time for the seller to perform under Art 47; requesting a court to order specific performance under Arts 28 and 46; declaring the contract avoided under Art 49; reducing the price of the non-conforming goods under Art 50; refusing to take an earlier delivery under Art 51; refusing to take delivery of a greater (or lesser) quantity under Art 52; suspending the performance of a contract under Art 71; avoiding a contract on the ground of an anticipated fundamental breach under At 72; avoiding a contract in proportion to the defective installments under 73; and claiming damages and interest under arts 74-78.

For the international sales of goods under the CISG, the buyer must examine the goods within as short a period of time as is practicable in the circumstances and give the seller notice of any non-conformity with the quality, quantity, description and other CISG requirements. If the breach is fundamental, the buyer may declare the contract avoided. The buyer may also require the seller to remedy the lack of conformity or fix an additional period of time for performance of the seller’s obligations (these remedies being in addition to an action for breach of contract). If goods do not conform, the buyer may accept the goods and reduce the price proportionately.