1. Markkinoiden juridinen toimintaympäristö Kalvot 4
Lainvalinta (kansainvälinen yksityisoikeus)
Tuomioistuimen valinta ja toimivalta
Vaihtoehtoiset riidanratkaisumenetelmät
Matti Rudanko

2. 2. International Sale of Goods Cases 1
B1 Ltd. and S1 Ltd. (Finnish companies)
B1 buys a paper machine from S1. It is material for B, firstly, that it can be taken in use on due date without a production interruption when the old machine is delivered to a foreign buyer. Secondly, it has to be checked that the new machine fulfils the the production volume requirement of x tons/day. A protection against production interruptions for the first year should be ensured, too.
Markkinoiden juridinen toimintaympäristö Kalvot 4

3. International Sale of Goods Cases, 2
B2 Ltd. Finnish, S2 Ltd. Swedish
A successive deliveries of boots contract. S2 is to deliver to B2 in the beginning of every month during a year x pairs of boots according to specifications supplied by B2 separately for each lot. B2 can employ a carrier from its own group but wishes to make sure that the boots arrive in good order and condition.
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4. International Sale of Goods Cases, 3
B3 Ltd. Finnish, S3 Ltd. English
B3 buys from S3 a helicopter used in shows from the manufacturer for rescue use after getting acquainted with the brochures of the seller and the object. S3 offers to bring the helicopter to the place of business of B3.
Markkinoiden juridinen toimintaympäristö Kalvot 4

5. International Sale of Goods Cases, 4
B4 Ltd. Finnish, S4 Ltd. French
Delivery of three lots of cheese of x kg each from S4 to B4 at a price of y FIM/kg. The seller can take care of the carriage but wants to remain free from risks related to carriage of the goods.
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6. International Sale of Goods Cases, 5
B5 an English consumer, S5 Ltd. Finnish
Net sale of consumer goods. B5 is dissatisfied with the quality of the goods and also thinks to have received misleading information of it in the marketing.
Markkinoiden juridinen toimintaympäristö Kalvot 4

7. Sopimuksen sisällön määräytyminen (normihierarkia)
Pakottava lainsäädäntö
Sopimus
Kauppatavat
Ei-pakottava lainsäädäntö
Kansallinen kauppalaki
CISG
Mallilait ja –sopimukset (ICC, Uncitral)
Itsesääntely (mm. vakioehdot)
Markkinoiden juridinen toimintaympäristö Kalvot 4

8. Kaupan osapuolten väliset suhteet: FSGA / CISG
Both are in force as national law
the CISG is an international sales act, i.e., applies to international sales relations:
if a reference is made to or a connecting factor concerns Finnish law, the CISG applies
a mere reference to the law or to a court does not render a contract international
if the parties want to apply the FSGA a special reference to it has to be made
CISG rules on conclusion of contract do not apply if the places of business of the parties are situated in the Nordic countries (the Nordic reservation)
The Nordic general reservation on the exclusion of Part II (formation of contract) cancelled
New Nordic clarification: Contract Acts apply between them
Thus, Contracts Act rules on formation of contract apply as Finnish law in case 2
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9. Act 1964 (see below) and CISG
The [Finnish] Act on the Law applicable to International Sale of Goods, 1964 (Act -64)
determines the choice of law
scope of application: international sales relations
limitations: consumer relations, sale of a registered ship etc.
CISG concerns the contents of the sales relationship
scope of application
international sales relations
limitations: household goods, securities, ships, electricity etc.
Not applicable on contracts of mainly working
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10. Rome I Regulation (Reg. (EC) No. 593/2008)
Regulation on the law applicable to contractual obligations: connecting factors
a reference to the law
the closest reference; a contract referring to several states can also be divided
the place of residence / management / business of the party liable for the characteristic performance, unless all circumstances refer to another state
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11. Rome I Regulation 2
Special rules: real estates, transport, employment contracts etc.
The validity of a contract (term) is decided according to the law applicable in case of validity
even the mandatory provisions of another Convention state matter
ordre public
minimum level protection of consumer rights
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12. International Private Law
Contains the so-called connecting factor (point of reference) rules according to which the applicable law is chosen
the rules are highly harmonized
as a rule, the connecting factor rules of the country of the court (lex fori) is applicable
the rules on the international jurisdiction (general judicial power) show the competent court state (there the competent court determined by national rules)
In general: the home country of the defendant / place of contractual performance
A consumer may sue also in her home state
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13. International Private Law II
the validity of the reference is considered according to the law referred to
A reference to law is allowed and prescribes the applicable law
ordre public: a foreign provision conflicting with the foundations of the national legal order is not applied in courts
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14. Case 1: a domestic sale transaction
Choice of Law 1
Case 1: a domestic sale transaction
the Finnish Sale of Goods Act (FSGA) is applicable
the parties may agree upon the application of the law of another country, too (The [Finnish] Act on the Law applicable to International Sale of Goods, 1964; Act -64)
this type of agreement is in itself no international point of reference (does not give the contract an international character)
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15. Case 2: a Nordic sales transaction
Choice of Law 2
Case 2: a Nordic sales transaction
Act -64: choice of law questions:
the law of the seller’s country of residence / headquarters (observe that nationality does not matter)
the law of the buyer’s country if the order is received there
here: Swedish law if the order is received in Sweden, otherwise Finnish law
FSGA / CISG (the International Sale of Goods Act) ? (no major differences between them)
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16. Case 2 (cont.): Choice of Law 3
Reference to CISG state is at hand when
parties have their places of business in different states and
either these states are parties to the Convention or
Convention state law is applicable on other grounds (according to the rules of international private law)
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17. Case 3: an English seller
Choice of Law 4
The UK has not joined the CISG
Act 1964 does not apply to sale of an aircraft
If the points of reference are ascertained in a Finnish court and there is no contractual reference to law):
Case 3: an English seller
Law applicable to contractual obligations in general
The place of residence of the party charged with the performance typical to the contract
Here: the seller -> the law of the UK (the British SGA)
As Finnish law (not here), CISG would be applicable
Rome I Regulation
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18. France has joined the CISG
Choice of Law 5
Case 4: a French seller
France has joined the CISG
Choice of Law (Act -64):
if the decisive reference is to Finland: the order has been received there: the CISG
the reference to France: likewise the CISG
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19. Net sales, the buyer is an English consumer
Choice of Law 6
Net sales, the buyer is an English consumer
Choice of law: Act 1964 does not apply
Rome I Regulation:
The law of the country of residence of the consumer if the transaction is based on marketing goods there and the consumer has concluded the contract there
Here: probably English law
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20. So-called Soft Law in International Trade
Model laws and general principles
UNIDROIT Principles of International Commercial Contracts
Principles of European Contract Law (EU)
UNCITRAL Model Law on Electronic Commerce
General contract terms and rules
INCOTERMS
ICC Documentary Credit Rules
ICC Model International Sale Contract 1998
etc., e.g. NLM 10 (Nordic Countries: machines, mechanical, electricity and electronic devices)
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21. Alternatives to Legally Binding Force of Contract
Common investments etc.
Public image factors
“hostages”: e.g. advance performances, securities (collaterals)
Common organizations
Common voluntary arrangements to enhance party commitment to contract
Public enforcement is still required as last resort (parties usually want to avoid it)
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22. Agreed Conflict Management Systems
ICC Rules of Optional Conciliation
Official bodies (e.g. the Finnish Consumer Disputes Board competent to issue recommendations only)
Reconciliation or settlement in court
Maintaining business relations
Avoiding market disorder
The uncertainty, slowness and expensiveness of trial in court
The uncertainty of enforcement
Why parties prefer altenative dispute resolution systems (ADR)
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23. The Court System General courts
The international jurisdiction (general judicial power)
A consumer may sue also in her home state
Council Regulation (EC) 44/2001 on the jurisdiction of courts and the recognition and enforcement of judgments in civil and commercial law matters (Brussels I Regulation)
The competent court state (there the competent court determined by national rules)
In general: the home country of the defendant / place of contractual performance (at the plaintiff’s choice)
Determined according to the applicable law
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24. The parties may in general agree upon the competent court
General courts
The parties may in general agree upon the competent court
Consumer and insurance disputes: the court of the home state of the consumer
(a mandatory provision: no scope for contracting; a conflicting term is invalid)
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25. The recognition and enforcement of judgments
In general foreign judgments are not recognised
Brussels I Regulation
the jurisdiction of courts and the recognition and enforcement of judgments in civil and commercial law matters
Exequatur procedure necessary (in court of the enforcing state)
Bilateral or local multilateral conventions e.g. between the Nordic countries
Arbitration awards: very extensive enforceability under the New York convention (large coverage)
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26. Arbitration
Quickness, expertise, flexibility, secrecy of trial
New York convention (1958) on recognition and enforcement of arbitration awards
UNCITRAL model law and Arbitration Rules
Private court system with competence to issue awards enforceable by official authorities
Parties agree upon site, language, legal order applied and the members of the tribunal
Arbitration clause is binding only upon parties to the agreement
ICC, Finnish Central Chamber of Commerce: appointment of arbitrators, rules etc.
Ad hoc / permanent arbitration institutes
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