International Aspects of Business Law 2014 Custom Essay

International Aspects of Business Law 2014

Coursework Assignment (II)

Deadline for coursework submission: 19TH May 2014, 1PM.

Word limit: 2,500-3,000 words maximum limit

Referencing style: Harvard or OSCOLA (footnotes)

Please refer to the module handbook for further instructions and indicative reading.

Answer ANY TWO of the following four questions:

Question 1

Natbraska acceded to the WTO in 2003. As part of its long-term national industrial strategy, the government decided to build an industrial park specializing in the production of tablet computers. To give effect

to its industrial strategy, the government of Natbraska introduced quantitative restriction in the form of quotas on imported tablet computers, laptops, smart phones, so as to protect its local manufactures of

tablet computers from international competition.

Following a complaint by other trading partners before the WTO, Natbraska abolished the quantitative restrictions on the importation of laptop, but maintained quantitative restrictions for the importation of

tablet computers and smart phones.

As part of a programme of regulatory reform, Natbraska to apply the following trade restrictions on imports:

• While customs duties of 10 per cent applies to smart phones and laptops, a customs duties of 20 per cent applies to tablet computers
• While a 20% import custom duty applies to imports of tablet computer, a lower 5% import tariff applies to imports of tablet computers from neighboring South Korea.
• a limit of 20,000 imports of tablet computers per year is imposed
• A ban on smart phones and tablet computers which cannot be easily recycled, because they are produced with too many part components.

Natbraska has exempted the following products from internal taxation measures:
• Smart phones imported from South Korea
• Laptops that meet the Energy Star energy-efficiency standards

According to its national legislation, a value added internal tax of 15% on domestic sales of domestically manufactured tablet computers, while a 20% internal tax applies to sales of foreign-produced tablet

computers. Moreover, a minimum sales price is applied to both imported and domestic tablet tablets.

Despite the trade restrictive measures introduced by Natbraska, the national manufacturers are still unable to compete with foreign manufacturers of tablet computers who maintain 60% share of the domestic

market. The domestic manufactures then start to lobby the government of Natbraska to impose the following measures:

• Impose anti-dumping duties on three of the main exporters of tablet computers to Natbraska
• Impose counter-veiling duties on tablet computers from South Korea, whose government is suspected to be subsidizing its local manufacturers

An eminent international trade lawyer, you are asked to give legal advice to the government of Natbraska on the legality of the above-mentioned measures under international trade law.

Question 2

‘By establishing an international legal framework that recognizes rights and duties for the buyer and seller, the UN Convention on International Sales of Goods (‘the Vienna Convention’ or ‘CISG’ 1980) has

helped to increase the predictability in international trade.’

Discuss the above statement, with reference to specific legal provisions under the Vienna (‘CISG’) Convention.

Question 3

Cariby Ltd, a UK oil company associated with terrorist groups in Levyland, sells $2million worth of assets to finance the activities of a terrorist group which was plotting to assassinate three high ranking

government officials. The company uses two different accounts, one in a UK bank and another in a Cayman islands bank, in order to transfer the funds.

In turn, Cariby Ltd is willing to raise more money in order to buy weapons, and it does this through the sale of illegal drugs. Cariby then uses an account in a Swiss bank in order to launder the money raised

through the illegal activity. The Swiss bank upholds the principle of secrecy and confidentiality of bank accounts and refuses to release the source of the money and the account details to the police authorities.

Cariby also manipulates market information over-estimating its finances in order to raise the value of its equity share value. In addition, Cariby bribes foreign officials in order to be awarded a contract for

extraction of oil in the Nigerian delta. The subsidiary of Cariby in Nigeria is responsible for a major oil spill in the Nigerian delta, causing the death of 30 people and an estimated damage to the environment of

$100 million.

Critically discuss the legal implications, including the potential liabilities, for the parties in the above scenario.

Question 4

Critically discuss the benefits and drawbacks of the following options for settlement of commercial and investment disputes:

• International courts and tribunals
• International commercial arbitration
• Mediation and conciliation