So it's a run of the mill practice MBE question: Tulip-seller in Holland offers by telephone to sell tulip bulbs, in $QUANTITY at $PRICE to American flower retailer. Retailer responds by letter, confirming the deal. The letter contained both the price and quantity terms. Because of a calamity in Holland, the tulip-seller does not perform. In
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It's really not that complicated. Ask: Is it a sale of goods? If yes, then: are the buyer and the seller located in different countries? If yes, then: Is one of those countries a CISG state? If yes, then: do conflict-of-laws rules demand the application of the laws of the CISG sate? If yes, then you must apply the CISG.
In practice, any lawyer worth his salt advising a client on an international sale of goods would include choice of law and arbitration clauses in the contract--that would insulate the parties from this kind of judicial idiocy.
I wouldn't be so upset if the United States were not so active in the drafting and adoption of the CISG. For instance, the U.S. is not a party to the United Nations Convention on Contracts for the Carriage of Goods Wholly or Partly By Sea Rotterdam Rules, so I don't blame American lawyers or judges for being ignorant of that treaty--even if a number of the major maritime nations are already signatories to the Convention. But the CISG was as much a product of American desires for legal certainty as it was a project of global trade law unification.
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Oh, and of course you're right about including a choice of laws provision, which would, in most cases, put you right back in a state law regime (presuming that the parties are happy with that). And arbitration as well, generally :)
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The CISG has been in effect for about 23 years now. I don't think that's quite long enough for students trained in the CISG to have entered the judiciary in any great numbers, so I suppose that's part of the problem, too.
Another part of the problem: American lawyers--and, indeed, Americans in general--don't have a very good grasp of public international law. This is unfortunate. They are crippled when it comes to understanding one of the sources of federal law.
The anti-internationalist hostility gets trotted out whenever new appellate judges are up for confirmation. The right gets all riled up whenever it is suggested that perhaps a United States judge may look to authorities outside the United States--forgetting that a judge is compelled to do so if the controlling law emanates from those sources. This says nothing of the fact that federal judges have often alluded to, relied upon, and interpreted the law of nations in a number of cases going back to the very dawn of the republic..
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Perhaps this is something that can be changed for the better too.
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