ASPEN CASEBOOK SERIES

International

Business Transactions

Problems, Cases, and Materials

Third Edition

Daniel C.K. Chow

The Frank E. and Virginia H. Bazler Chair in Business Law The Ohio State University Michael E. Moritz College ofLaw

Thomas J. Schoenbaum

Harold, S. Shefelman Distinguished Professor University of Washington School ofLaw

,,"J Wolters Kluwer

Summary of Contents

Contents xi Preface to the Third Edition xxvii Acknowledgments xxix

1 Introduction 1 2 International Säle ofGoods 49 3 The Sales Contract 165 4 Letters of Credit 225 5 Non-Establishment Forms of International Business: Agency

and Distributorships, Technology Transfer, Contract Manufacturing, and Franchising 283

6 Foreign Direct Investment 349 7 Protecting Intellectual Property Rights 525 8 Dispute Resolution 587 9 Corporate Social Responsibility 713

Table of Cases 767 Index 775

ix

Contents

Preface to the Third Edition xxvii Acknowledgments xxix

1 Introduction 1

I. Some Background Considerations 1 A. Scope and Approach of This Book 1

Note on IBT and International Trade Legal Skills 3 B. Counsel in International Business 4

1. Issues Faced by Lawyers 4 2. Role of Counsel for an MNE 4 3. Challenges for the International Lawyer 7

Notes and Questions 8 Problem 1-1 8 Problem 1-2 9

C. Cultural Concerns 9 Notes and Questions 10 Problem 1-3 11 Problem 1-4 12

II. The Growth of International Business Since the Second World War 12 III. Modern Forms and Patterns of International Business and Commerce 14

A. Trade in Goods 14 B. Trade in Services 15 C. Foreign Direct Investment 16 D. Technology Transfer 17

IV. Some Important New Developments 18 A. The Rise of China and East and South Asia 18 B. The Role of Multinational Enterprises 19 C. Globalization 20

Notes and Questions 21 Problem 1-5 22

V. The Legal Framework for International Business Transactions 22

xii Contents

A. Introductory Considerations B. International Conflicts of Law and Choice of Law 22 C. The New Lex Mercatoria {"Law Merchant'') 24 D. Sources of Law for International Business Transactions 24 E. International Forums and Institutions 26

1. UNCITRAL 26

2. UNIDROIT 26

3. The International Chamber of Commerce 27 F. Major Categories of International Business Law 28

1. Public International Law 28 2. Regional Supranational Law 29 3. Uniform Codes and Other Harmonizing Measures 29 4. Domestic Law 30

Problem 1-6 30 G. Relationship of Sources of International Law to Domestic Law 30

Problem 1-7 32 Problem 1-8 33

VI. International Economic Law: The Public Law Institutions and Rules That Facilitate and Regulate International Business 33

Problem 1-9 34 A. The World Trade Organization 35 B. Preferential Trade Agreements 37 C. The North American Free Trade Agreement 38

1. NAFTA Objectives 39 2. NAFTA Administration and Dispute Settlement 39

D. The European Union 40 E. Free Trade in Asia 42

1. ASEAN 43 2. APEC 43

F. Free Trade in the Americas 43 G. Developing Countries 44 H. The Organization for Economic Cooperation and Development 45 I. Trade Institutions and Policy in the United States 45

Notes and Questions 46

2 International Sale of Goods 49

I. Overview of the International Sales Transaction 49 A. Expectations of the Parties 49 B. The International Context 50

Note on Trade Financing 52 1. The Sales Contract 53

Form 2-1 Letter of Inquiry 54 Form 2-2 Pro Forma Invoice 55 Form 2-3 Purchase Order 56 Notes and Questions 57

Contents xiii

2. Letter of Credit 57 Notes and Questions 58 Form 2-4 Commercial Letter of Credit 59

3. The Bill of Lading and the Contract of Affreightment 60 Form 2-5 Bill of Lading 62 Notes and Questions 63

4. Overview of the Entire Documentary Sale Transaction 63 Notes and Questions 65 Note on International E-Trade 66 Problem 2-1 66

C. Commercial Terms Under the ICC Incoterms 67 Problem 2-2 70 INCOTERMS 2010 ICC Rules for Use of Domes tic and

International Trade Terms 70 FOB 70 Problem 2-3 73 CIF 74

D. Interpretation of Commercial Terms 78 Problem 2-4 78 Biddell Brothers v. E. Clemens Horst Company 78 E. Clemens Horst Company v. Biddell Brothers 81 Notes and Questions 82

E. Documents of Title 82 Problem 2-5 83 Comptoir d Achat et de Vente Du Boerenbond Beige S/A v. Luis de Ridder

Limitada (The Julia) 83 Notes and Questions 87 Problem 2-6 89

F. Contracts of Affreightment, Bills of Lading, and Insurance 89 1. The Contract of Affreightment and the Bill of Lading 89

Hague-Visby Rules 92 2. COGSA: AThumbnail Sketch 95

Norfolk Southern Railway Co. v. Kirby 97 Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp. (The "K" Line Case) 102 Notes and Questions 108 Problem 2-7 110 Anvil Knitwear v. Crowley American Transport, Inc. 111 Problem 2-8 113 Steel Coils, Inc. v. M/V Lake Marion 114 Notes and Questions 120

3. Marine Insurance 121 American National Fire Insurance Co. v. Mirasco, Inc. 121 Notes and Questions 127 Problem 2-9 128

II. The International Sales Contract and International Trade Law Considerations 128 A. Export Trade Matters 129

Problem 2-10 129 Problem 2-11 129 Problem 2-12 129

xiv Contents

U.S. Regulation of Exports: The Export Administration Act, The Office of Foreign Assets Control, Antiboycott Laws, The Economic Espionage Act, and The Foreign Corrupt PracticesAct

Notes and Questions 134

B. Import Trade Matters 134

Problem 2-13 ^ ^ Problem 2-14 1^6 Problem 2-15 Problem 2-16 1^7 U.S. Regulation of Imported Goods: Classification, Valuation,

Rules of Origin, Marking, Free Trades Areas and Customs Unions, and Other Import Restrictions 137

Notes and Questions 147 1. Classification Issues 148

North American Processing Co. v. United States 149 JVC Co. of America v. United States 150 Better Home Plastics Corp. v. United States 152 Notes and Questions 154 Problem 2-17 154

2. Valuation Issues 154 Century Importers, Inc. v. United States 155 Notes and Questions 157 Problem 2-18 157

3. Rules of Origin 158 Zuniga v. United States 158 Notes and Questions 159 Problem 2-19 160

4. Marking 160 Bestfoods v. United States 160 Notes and Questions 162 Problem 2-20 163 Note on International Trade Law and the Import/Export Sales

Transaction 163

3 The Sales Contract 165

I. Choice ofLaw 165 Kristinus v. H. Stern Com. e Ind. S.A. 165 Notes and Questions 167

II. The United Nations Convention on Contracts for the International Sale of Goods 168 A. Basic Features of the CISG 170 B. Historical Origins 170 C. Cases on the CISG 170

Note on the UNIDROIT Principles 171 D. Sphere of Application of the CISG: Articles 1-6 171

Contents xv

1. Article 1 (1) (a) and the Test of Internationality 172 Problem 3-1 172

2. Article 1(1) (b) 173 Prime Start Ltd. v. Mäher Forest Products Ltd. 173 Notes and Questions 175 Problem 3-2 176

3. Other Issues Relating to Scope 176 Problem 3-3 176 Problem 3-4 177 Amco Ukrservice & Prompriladamco v. American Meter Co. 177 UNCITRAL CLOUT Gase 131 181 UNCITRAL CLOUT Case 122 181 Notes and Questions 182

4. Interpreting the CISG: Articles 7-13 183 Notes and Questions 184 Problem 3-5 185 GPL Treatment, Ltd. v. Louisiana-Pacific Corp. 186 Notes and Questions 186 Forestal Guarani S.A. v. Daros International Inc. 187

5. Part II of the CISG: Formation of the Contract 189 a. The Offer 190 b. Acceptance, Withdrawal, and Revocation of an Offer 190

Problem 3-6 191 Problem 3-7 192

c. Acceptance 192 Problem 3-8 194 Filanto, S.p.A. v. Chilewich International Corp. 195 Notes and Questions 198 Problem 3-9 199 Notes and Questions 200

d. Formation of the Complex Sales Contract Under the CISG 201 Problem 3-10 201 United Technologies International Pratt Whitney Commercial Engine

Business v. Malev Hungarian Airlines 202 Notes and Questions 205

6. Performance of the Contract 206 a. Delivery by Seiler 206

Problem 3-11 206 Notes and Questions 206

b. Conforming Goods 207 Problem 3-12 208 Problem 3-13 208 Medical Marketing International, Inc. v. Internationale Medico

Scientifica, S.r.l. 208 BP Oil International, Ltd. v. Empresa Estatal Petroleos de Ecuador 210 Notes and Questions 212

c. Payment by Buyer 212 Problem 3-14 213 Problem 3-15 213 Unilex, D. 1995-1 213

xvi Contents

Problem 3-16 ^ ^ d. Excused Performance 214

(1) Article 79 214 Problem 3-17 215 Tsakiroglou & Co. Ltd. v. Noblee Thorl G.m.b.H. 215 (2) Performance Delegated to a Third Party 217

Problem 3-18 218 Unilex, D. 1993-3.4 218 Notes and Questions 219

7. Remedies 219 a. Remedies of the Seiler 220

Dingxi Longhai Dairy, Ltd. v. Becwood Technology Group, LLC 220 Problem 3-19 221 Notes and Questions 221 Problem 3-20 222 Problem 3-21 222

b. Remedies of the Buyer 222 Problem 3-22 223 Problem 3-23 223 Problem 3-24 223 Problem 3-25 224

c. Anticipatory Breach and Installment Contracts 224 Problem 3-26 224 Problem 3-27 224 Notes and Questions 224

4 Letters of Credit 225

I. Sources of Letter of Credit Law 225 II. Letter of Credit Basics 226

Problem 4-1 230 Problem 4-2 230 Problem 4-3 231 Problem 4-4 231 Problem 4-5 231 Problem 4-6 232

III. Basic Principles of Letter of Credit Law 232 A. The Independence Principle 232

Problem 4-7 232 Urquhart Lindsay and Company, Ltd. v. Eastern Bank, Ltd. 233 Notes and Questions 236 Maurice O 'Meara Co. v. National Park Bank of New York 236 Notes and Questions 240

B. Strict Compliance 241 Problem 4-8 241 J.H. Rayner and Company, Ltd. v. Hambro's Bank, Ltd. 242 Hanil Bank v. PT. Bank Negara Indonesia 246

Contents xvii

Notes and Questions 249 Problem 4-9 251 Problem 4-10 251 Note on Electronic Communications 251 Problem 4-11 253

C. The Fraud Exception to the Independence Principle and Enjoining the Letter of Credit 253 1. The Problem of Fraud 253 2. Sources of Law 255 3. Different Types of Innocent Parties 256 4. Fraud Cases Not Involving Innocent Third Parties 257

Problem 4-12 258 Mid-America Tire, Inc. v. PTZ TradingLtd. 258 Notes and Questions 265

5. Enjoining the Standby Letter of Credit 265 a. The Standby Letter of Credit 265 b. Sources of Law for the Standby Letter of Credit 267

Notes and Questions 268 Problem 4-13 269 American Bell International, Inc. v. Islamic Republic oflran 269 Harris Corporation v. National Iranian Radio & Television 275 Notes and Questions 280 Problem 4-14 280

5 Non-Establishment Forms of International Business: Agency and Distributorships, Technology Transfer, Contract Manufacturing, and Franchising 283

Beyond the Sales Transaction 283 Non-Establishment Forms of Business Abroad 284

I. Agency and Distributorships 285 A. Control 286 B. Competition Law Issues 287 C. Termination Issues 287 D. Intellectual Property Issues 289 E. Other Considerations 289

Problem 5-1 290 Problem 5-2 291 Problem 5-3 291

1. Local and Regional Legal Requirements 296 a. German Law 296

Problem 5-4 297 German Statutes Relating to Agency Agreements 297

b. The European Union 300 Problem 5-5 302 Problem 5-6 302 Treaty on the Functioning of the European Union 303

xviii Contents

Commission Regulation (EC) No. 330/2010 on the Application of Article 101(3) of the Treaty to Categories ofVertical Agreements and Concerted Practices 304

Notes and Questions 306 II. Technology Transfer and Licensing 307

Beyond the Agency/Distributorship to Technology Transfer 308 A. What Is Technology Transfer and Why Is It Important? 308

1. Technology Transfer in Internationa] Business 309 2. Intellectual Property and World Economic Development 310 3. Intellectual Property and Related Topics 311

Notes and Questions 311 B. The International Intellectual Property Legal System 312

1. Patents 313 International Patent Treaties 314

2. Trademarks 316 International Trademark Treaties 317

3. Copyright 318 International Copyright Treaties 319

4. Know-How and Trade Secrets 320 International Treaties 321 Notes and Questions 321

III. Selected Issues in Licensing: The Patent License Agreement 322 Problem 5-7 322 Problem 5-8 322 Problem 5-9 323 Problem 5-10 323 Patent License Agreement 324 Commission Regulation (EU) No. 316/2014 of 21 March

2014 on the Application of Article 101 (3) of the Treaty to Categories of Technology Transfer Agreements 330

Notes and Questions 333 IV. Business Format Franchising 334

Notes and Questions 336 Problem 5-11 336 Franchise Agreement 337 Problem 5-12 343 Pronuptia de Paris GmbH v. Pronuptia de Paris 343 Notes and Questions 346

6 Foreign Direct Investment 349

I. Introduction 34g A. The Decision to Invest: Medtech Reaches a Crossroads 349

1. Market Penetration 35] 2. Management and Control 351 3. Intellectual Property 35 \ 4. Research and Development Abroad 352

Contents xix

5. Global Competition 353 B. Mergers and Acquisitions (M&A) 353

II. Global Trends in Foreign Direct Investment 355 A. Recent Growth 355 B. Role of FDI in Economic Development 356

Notes and Questions 356 Problem 6-1 357

III. International Investment Law 357 A. The Traditional Framework for Protecting FDI: The International

Court of Justice 358 Anglo-Iranian Oil Co. Gase (U.S. v. Iran) 358 Gase Concerning Barcelona Traction, Light and Power

Company (The Barcelona Traction Gase) (Belgium v. Spain), Second Phase 359

Gase Concerning Elettronica Sicula S.p.A. (The ELSI Gase) (U.S. v. Italy) 360

Notes and Questions 360 B. Multilateral and Bilateral Treaties 362

Modern International Investment Law: Bilateral Investment Treaties, Free Trade Agreements and Customs Unions, and the Convention on the Settlement of Disputes Between States and Nationais of Other States (the ICSID Convention) 362

Notes and Questions 366 Problem 6-2 367 Lanco International, Inc. v. Argentine Republic 368 Notes and Questions 374 Wena Hotels, Ltd. v. Arab Republic ofEgypt 374 Notes and Questions 379 LG&E Energy Corp., et al. v. Argentine Republic 380 Notes and Questions 385 Note on Enforcement of ICSID Awards 386

C. An Example of a Regional Trade Agreement: NAFTA 387 Marvin Feldman v. Mexico 389 Notes and Questions 395 Problem 6-3 396

D. Investment and the World Trade Organization 397 Notes and Questions 399

IV. Limits in Corporate Conduct in International Investment: The Foreign Corrupt Practices Act 399

Problem 6-4 400 Problem 6-5 401 Problem 6-6 401

A. Overview of the FCPA 401 1. Persons Subject to the FCPA 402 2. Nexus with Intestate Commerce 402 3. Corrupt Intent 403 4. Proscribed Payments 403 5. Persons to Whom Payments Are Made 403 6. Purpose of the Payment 403

Notes on the OECD Bribery Convention and Other International Treaties 403

XX Contents

Notes and Questions 4U4

B. Basic Issues Under the FCPA 405 Problem 6-7 405 United States v. Kay 405 Stichting Ter behartiging Van de Belangen Van Oudaandeelhouders

in Het Kapitaal Van Saybolt International B. V. v. Schreiber 413 Problem 6-8 419 United States v. Kozeny 419 Notes and Questions 422 Note on the U.S. Foreign Investment and National Security

Actof2007 422 V. The Transactional Aspects of FDI: Establishment in the European Union,

China, and Brazil 423 A. Introduction 423

Conceptual Outline and Checklist of Foreign Direct Investment Issues 425

B. Foreign Investment in the European Union 427 1. Access to the Internal Market of the EU: The Four Freedoms 427

Problem 6-9 428 Rewe-Zentral AG v. Bundesmonopolverwaltung für Branntwein 428 Notes and Questions 430 Problem 6-10 430 Centros Ltd. v. Erhvervs-og Selskabsstyrelsen 431 Notes and Questions 432 Note on Protection of Intellectual Property in the EU 433

2. Establishment in the EU 433 Problem 6-11 433 An Overview of Company Establishment in Three European

Legal Systems: The United Kingdom, France, and Germany 434 Note on Employee Co-determination in Management Issues

in France and Germany 437 Notes and Questions 438

3. EU Competition Law Affecting Foreign Direct Investment 439 a. Abuse of a Dominant Position 440

Problem 6-12 441 United Brands Company v. Commission of the European Communities 442 Microsoft Corp. v. Commission of the European Communities 445 Notes and Questions 450

b. The EC Merger Regulation 451 Tetra Laval BVv. Commission of the European Communities 452 Notes and Questions 455 Note on the Extraterritorial Application of EU Competition Law 456

C. Foreign Direct Investment in China 457 1. China's Economic System 457

Daniel C.K. Chow, The Legal System of the People's Re,public of China in a Nutshell 457

Notes and Questions 453 2. China's FDI Legal Regime and Foreign Investment Business

Vehicles a. The Joint Venture 454 b. The Wholly Foreign-Owned Enterprise 465

Contents xxi

Notes and Questions 465 Note on a Gamble by an MNE That Faid Off 465

3. Establishing the Joint Venture 466 a. Approval Process 466

Problem 6-13 467 b. Capital Investment 468 c. Management Structure 468

Problem 6-14 469 Problem 6-15 469 Problem 6-16 470 Problem 6-17 470 Problem 6-18 471 PRC Equity Joint Venture Law (2001) 471 Equity Joint Venture Law Implementing Regulation« 472 Joint Venture Contract Between Beijing Seagull Detergent

Group Corp. and Acme (China), Ltd. 474 Notes and Questions 490

D. Foreign Direct Investment in Brazil 492 1. Brazil's Approach to FDI 493

a. Policy Objectives 494 b. Some Background Economic History and Considerations 494 c. The Enactment of the Profits Remittance Law 496

2. The Business Climate in Brazil 497 Problem 6-19 497 Brazil's Environment for Döing Business and for Foreign

Direct Investment 497 3. Brazilian Laws Relating to Foreign Direct Investment and

Business Organizations 509 a. Brazilian Business Organizations 509

Problem 6-20 509 Overview of Business Entities Available for Use in Foreign

Direct Investment in Brazil 510 b. Brazilian Laws Applicable to Foreign Direct Investment 513

Problem 6-21 513 Problem 6-22 514 Profits Remittance Law 514 Notes and Questions 520 Note on Sovereign Debt Collection 521

7 Protecting Intellectual Property Rights 525

I. Overview of Commercial Piracy 526 A. Rise in Commercial Piracy 526

Problem 7-1 528 B. Categories of Commercial Piracy 529

1. Copyright Piracy 529 Notes and Questions 531

2. Trademark Counterfeiting 532

XXII Contents

Notes and Questions S. Patent Infringements 534

Notes and Questions 535 C. Counterfeiting and Commercial Piracy in China 537

Statement of Professor Daniel Chow Before the Senate Government Oversight and Management Subcommittee 537

Notes and Questions 538 Problem 7-2 540 Problem 7-3 542 Problem 7-4 542 Daniel C.K Chow, Organized Crime, Local Protectionism,

and the Trade in Counterfeit Goods in China 543 Notes and Questions 551 Note on Responses by MNEs and Foreign Governments 552 Problem 7-5 552

II. TRIPs and the Protection of Intellectual Property Rights 553 A. Intellectual Property, TRIPs, and the WTO 553

Notes and Questions 555 B. Enforcement Obligations Under TRIPs Against Commercial Piracy 555

1. General Enforcement Obligations 555 Notes and Questions 556

2. Provisional Measures 557 Problem 7-6 558

C. TRIPs and the Access to Medicines Debate 558 Notes and Questions 563 Problem 7-7 564

D. TRIPs and the Biopiracy Debate 564 Problem 7-8 566 Problem 7-9 566

III. Gray-Market Goods and Parallel Imports 566 A. What Are Gray-Market Goods and Parallel Imports? 567

Notes and Questions 568 B. Gray-Market Goods Under U.S. Law 568

Problem 7-10 571 K-Mart Corp. v. Cartier, Inc. 571 Lever Brothers Co. v. United States 574 Notes and Questions 576 Problem 7-11 577 Quality King Distributors, Inc. v. L'anza Research International, Inc. 577 Kirtsaeng v. John Wiley & Sons, Inc. 580 Notes and Questions 584

8 Dispute Resolution 587

I. Introduction 587 Overview of International Business Dispute Resolution Issues 587 Preliminary Issues 588

Contents xxiii

Choice of Forum 588 Choice of Law 589 Jurisdiction 589 Sovereign Immunity and the Act of State Doctrine 590 Resolving Preliminary Issues by Agreement 591 Dispute Resolution Other Than by Litigation 591 Other Issues 593

II. Arbitration 593 A. Choosing Arbitration 593

Susan Karamanian, The Road to the Tribunal and Beyond: International Commercial Arbitration and the United States Courts 594

Note on Expanding Grounds to Vacate Arbitration Awards 597 Negotiating and Structuring International Arbitration

Transactions, Using Model Arbitration Clauses, and Practical Matters in Arbitration 597

Notes and Questions 600 B. Enforcing the Agreement to Arbitrate 601

Problem 8-1 601 Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. 602 Notes and Questions 607

C. Judicial Review and Enforcement of the Award 607 Problem 8-2 607 Problem 8-3 608 Polytek Engineering Co., Ltd. v.Jacobson Companies 608 Stolt-Nielsen SA v. AnimalFeeds Int'l Corp. 612 Stolt-Nielsen SA v. AnimalFeeds International Corporation 617 Notes and Questions 619

III. Litigation 619 A. Choice of Forum 621

Problem 8-4 621 M/S Bremen v. Zapata Off-Shore Co. 622 Gita Sports Ltd. v. SG Sensortechnik GmbH & Co. KG 626 Notes and Questions 630 Problem 8-5 631 Problem 8-6 631 Problem 8-7 632 Note on the Hague Convention on Choice of Court Agreements 632

B. Choice of Law 633 1. Choice of Law Approaches 634

Amco Uhrservice v. American Meter Co. 634 Notes and Questions 638

2. Choice of Law Clauses 639 Problem 8-8 639 Problem 8-9 639 The Restatement (Second) of Conflict of Laws (1971) 640 Notes and Questions 640

C. Jurisdiction 641 1. International Law 641

Kathleen Hixson, ExtraterritorialJurisdiction Under the Third Restatement of Foreign Relations Law of the United States 641

Notes and Questions 643

xxiv Contents

2. Adjudicative Jurisdiction: Subject Matter and Territorial Jurisdiction ^4

Problem 8-10 ®^5 Asahi MetalIndus. Co., Ltd. v. Superior Court 646 Goodyear Dunlop Tires Operations, S.A. v. Brown 651 Glencore Grain Rotterdam B. V. v. Shivnath Rai Harnarain Co. 653 Notes and Questions 656

3. Sovereign Immunity 657 Problem 8-11 658 In re Arbitration Between: Trans Ghem. Ltd. & China Nat'l Mach.

Import & Export Corp. 658 Note on Restrictive Immunity 660

4. The Act of State Doctrine 661 Problem 8-12 661 Optopics Lab. Corp. v. Savannah Bank of Nigeria, Ltd. 661 FOGADE v. ENB Revocable Trust 665 Notes and Questions 667 Problem 8-13 668

5. International Comity and Forum Non Conveniens 668 DeYoungv. Beddome 668 Notes and Questions 672

6. Service of Process 673 Conax Florida Corp. v. Astrium Ltd. 673 Notes and Questions 676

7. Jurisdiction over Parent and Affiliated Companies 677 Problem 8-14 677 Itel Containers Int'l Corp. v. Atlanttrafik Express Sern. Ltd. 678 Notes and Questions 682 Problem 8-15 682

8. Conflicts of Jurisdiction: Multiple Proceedings in Different Forums 683 Goss International Corp. v. Man Roland Druckmachinen AG 683 Notes and Questions 686 Finanz AG Zürich v. Banco Economico S.A. 686 Ibeto Petrochemical Indus. Ltd. v. M/T Beffen 690 Notes and Questions 693

D. Evidence and Discovery 694 1. Obtaining Evidence Abroad 694

Problem 8-16 694 Tulip Computers Int'l B. V. v. Dell Computer Corp. 695 Notes and Questions 698

2. Obtaining Evidence in the United States for Use in Foreign Courts 699

In re Clerici 699 Notes and Questions 702

E. Recognition and Foreign Enforcement of Foreign Judgments 703 Problem 8-17 703 Somportex Ltd. v. Philadelphia Chewing Gum Corp. 704 Society of Lloyd's v. Siemon-Netto 708 Notes and Questions 711

Contents XXV

9 Corporate Social Responsibility 713

I. Introduction 713 Problem 9-1 713 Problem 9-2 714 Jonathan I. Charney, Transnational Corporations and Developing

Public International Law 714 Jordan J. Paust, Human Rights Responsibilities of Private Corporations 715 Doe I v. Wal-Mart Stores, Inc. 719 Notes and Questions 722 Problem 9-3 723

II. Codes and Standards of Conduct 724 Problem 9-4 724 Problem 9-5 724 Organization for Economic Cooperation and Development:

The OECD Guidelines for Multinational Enterprises, 2011 725 Note on Implementation of the OECD Guidelines for

Multinational Enterprises 729 Note on the "Polluter Pays Principle" as the Basis of

Encouraging Multinational Companies to Engage in Sustainable Development 730

Problem 9-6 732 Instituting a Corporate Environmental and Safety

Management System 732 Environmental Liability Disclosure Obligations of

Public Companies 735 Notes and Questions 736 A Guide for the Perplexed: Creating a CSR Program for

Your Company 737 III. Exporting Hazard: Legal and Ethical Considerations 737

Problem 9-7 737 H.Jeffrey Leonard, Confronting Industrial Pollution in Rapidly

Industrializing Countries: Myths, Pitfalls, and Opportunities 738 Maureen A. Bent, Exporting Hazardous Industries: Should

American Standards Apply ? 739 Treaties Restricting Trade in Hazardous Materials 740 Organization for Economic Cooperation and Development:

Council Recommendation on the Application of the Polluter-Pays Principle to Accidental Pollution 741

Note on U.S. Controls on Exports of Hazardous Wastes 742 Notes and Questions 743

IV. Liability for Industrial Accidents 743 Problem 9-8 743 Stephen C. McCaffrey, Accidents Do Happen: Hazardous

Technology and International Tort Litigation 744 Problem 9-9 745 In re Union Carbide Corp. Gas Plant Disaster at Bhopal,

India in December 1984 745

xxvi

Shyam Divan and Armin Rosencranz, The Bhopal Settlement Note on the Bhopal Settlement and Its Tortuous Aftermath Notes and Questions

V. The U.S. Alien Tort Statute Abdullahi v. Pfizer, Inc. Kiobel v. Royal Dutch Petroleum Company Notes and Questions

Contents

748 752 753 754 756 763 765

Table of Cases Index

767 773