Rethinking the Internal Affairs Rule
The internal affairs rule posits that a court should generally apply the law of the state in which an entity is incorporated to resolve questions relating to that entity’s internal affairs. These affairs encompass such matters as the election of directors, the rights of shareholders, and the fiduciary duties owed to shareholders. In a trio…
Continue ReadingOptionality in Choice of Law
Choice-of-law clauses are sometimes described as tools for reducing legal uncertainty. This characterization, while correct, is incomplete. In cases where the suit is brought in a jurisdiction other than the one named in the choice-of-law clause, it is sometimes more accurate to think of the clause as an option. Either litigant may, if it so…
Continue ReadingThe CISG and Choice-of-Law Clauses
Although the United Nations Convention on Contracts for the International Sale of Goods (CISG) has been in force for over 35 years, there is still scholarly disagreement as to how this treaty interacts with choice-of-law clauses (see, e.g., the discussion on this blog: Coyle, Brand and Flechtner, Hayward and Lal). In principle, there seems to…
Continue ReadingDrawing Inferences from CISG Opt-Outs
The United Nations Convention on Contracts for the International Sale of Goods (CISG) and the Uniform Commercial Code (UCC) both supply rules to govern contracts for the sale of goods. The UCC applies to purely domestic transactions. The CISG applies to many international transactions. When a contract involves the mixed sale of goods and services,…
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