Question

In: Economics

To encourage more exports, should the USA adopt the CISG for domestic (inside USA) transactions? Why...

To encourage more exports, should the USA adopt the CISG for domestic (inside USA) transactions? Why or why not?

Solutions

Expert Solution

The CISG was developed as a solution to the concerns resulting from complexities of law encountered when the parties from two different states enter into a contract for the sale of product. The main motive is to provide a body of law that will be acceptable and applied uniformly by states with different legal systems. The main function of the CISG is harmonization of common law and civil law legal principles. However I am in the favor of excluding CISG. It is less known or lawyers lacks experience with the CISG or known concerns with the CISG. Moreover, The CISG follows the “mirror image” rule and the “last shot” rule. If the difference occurs between the offer and acceptance will convert the acceptance into a counter-offer which, specifically will be considered accepted by performance of the contract. Consequently, under the CISG the rule “last shot” is applicable thus these will be terms of the acceptance of the counteroffer that control. Also a contract under the CISG may fail for indefiniteness if the price is not mentioned or cannot be determined.


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