ASPEN PUBLISHERS

I

InternationalBusiness TransactionsProblems, Cases, and Materials

Second Edition

Daniel C.K. ChowJoseph S. Platt-Porter Wright Morris & Arthur Professor of Law,The Ohio State University Michael E. MoritzCollege of Law

Thomas J. SchoenbaumResearch Professor of Law, George Washington University,Washington, D.C.Special Counsel for International Business Law,Noda General Law Offices, Tokyo, Japan

Law & Business

AUSTIN BOSTON CHICAGO NEWYORK THE NETHERLANDS

Summary of Contents

ContentsPrefaceAcknowledgments

1 Introduction2 International Sale of Goods3 The Sales Contract4 Letters of Credit5 Non-Establishment Forms of International Business: Agency

and Distributorships, Technology Transfer, ContractManufacturing, and Franchising

6 Foreign Direct Investment7 Protecting Intellectual Property Rights8 Dispute Resolution9 Corporate Social Responsibility

Table of CasesIndex

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Contents

Preface xxviiAcknowledgments xxix

Introduction

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

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

1. Issues Faced by Lawyers 42. Role of Counsel for an MNE , 53. Challenges for the International Lawyer 7

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

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

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

A. Trade in Goods 14B. Trade in Services 16C. Foreign Direct Investment 16D. Technology Transfer 18

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

Notes and Questions 22Problem 1-5 22

V. The Legal Framework for International Business Transactions 23

xii Contents

A. Introductory Considerations ) 23B. International Conflicts of Law and Choice of Law 23C. The New Lex Mercatoria ("Law Merchant") 25D. Sources of Law for International Business Transactions 25E. International Forums and Institutions 26

1. UNCITRAL 272. UNIDROIT 273. The International Chamber of Commerce 28

F. Major Categories of International Business Law 291. Public International Law 292. Regional Supranational Law 303. Uniform Codes and Other Harmonizing Measures 304. Domestic Law 31

Problem 1-6 31G. Relationship of Sources of International Law to Domestic Law 31

Problem 1-7 33Problem 1-8 34

VI. International Economic Law: The Public Law Institutions and Rules ThatFacilitate and Regulate International Business 34

Problem 1-9 35A. The World Trade Organization 36B. Preferential Trade Agreements \ 40C. The North American Free Trade Agreement \ 41

1. NAFTA Objectives 412. Dispute Resolution Under NAFTA 42

D. The European Union 43E. Free Trade in Asia 45

1. ASEAN . 452. APEC 46

F. The Proposed Free Trade Area of the Americas 46G. Developing Countries 46H. The Organization for Economic Cooperation and Development 47I. Trade Institutions and Policy in the United States 48

Notes and Questions 49Note on the Current Global Financial Crisis 49

International Sale of Goods 51

Overview of the International Sales Transaction 51A. Expectations of the Parties 51B. The International Context 52

Note on Trade Financing 541. The Sales Contract 55

Form 2-1 Letter of Inquiry 56Form 2-2 Pro Forma Invoice 57Form 2-3 Purchase Order 58Notes and Questions 59

Contents xiii

2. Letter of Credit I 59Notes and Questions 60Form 2-4 Commercial Letter of Credit 61

3. The Bill of Lading and the Contract of Affreightment 62Form 2-5 Bill of Lading 63Notes and Questions 64

4. Overview of the Entire Documentary Sale Transaction 64Notes and Questions 66Note on International E-Trade 67Problem 2-1 67

C. Commercial Terms Under the ICC Ihcoterms 68Problem 2-2 71INCOTERMS 2000 ICC Official Rules for the

Interpretation of Trade Terms 71FOB 71Problem 2-3 74CIF 74

D. Interpretation of Commercial Terms 78Problem 2-4 78Biddell Brothers v. E. Clemens Horst Company , 79E. Clemens Horst Company v. Biddell Brothers 82Notes and Questions . 82

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

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

F. The Contract of Affreightment, Bills of Lading, and Insurance 901. The Contract of Affreightment 90

Hague-Visby Rules 91Eli Lilly do Brasil, Ltda. v. Federal Express Corporation 95Notes and Questions 98

2. The Bill of Lading 98a. General Considerations 98b. The Search for Uniformity 100

Norfolk Southern Railway Co. v. Kirby 102Problem 2-7 107Fruit of the Loom v. Arawak Caribbean Line Ltd. 108Notes and Questions 111Problem 2-8 112Steel Coils, Inc. v. M/V Lake Marion 112Notes and Questions 119Vimar Seguros y Reaseguros, S.A. v. M/V Sky Reefer 120Notes and Questions 124

3. Marine Insurance 125American National Fire Insurance Co. v. Mirasco, Inc. 125Notes and Questions 131Problem 2-9 132

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II. The International Sales Contract and' International Trade LawConsiderations 132A. Export Trade Matters 133

Problem 2-10 133Problem 2-11 134Problem 2-12 134Lucinda A. Low and William M. McGlone, Avoiding Problems

Under . . . U.S. Antiboycott Laws, OFAC Sanctions, Export Controls,and the Economic Espionage Act 134

Notes and Questions 142B. Import Trade Matters ~" 143

Problem 2-13 143Problem 2-14 143Problem 2-15 144Problem 2-16 144Mark R. Sandstrom, Julia M. McCalmon, and Teresa M. Goody,

The Impact of Trade and Customs Laws upon InternationalCommercial Transactions 144

Notes and Questions 1551. Classification Issues * 157

North American Processing Co. v. United States 157JVC Co. of America v. United States . 159Better Home Plastics Corp. u United States \ 161Notes and Questions 163Problem 2-17 163

2. Valuation Issues 163Century Importers, Inc. v. United States 164Notes and Questions 166Problem 2-18 167

3. Rules of Origin 167Zuniga v. United States 167Notes and Questions 169Problem 2-19 169

4. Marking 169Bestfoods v. United States 169Notes and Questions 171Problem 2-20 172Note on International Trade Law and the Import/Export Sales

Transaction 172

The Sales Contract 175

I. Choice of Law 175Kristinus v. H. Stern Com. E. Ind. S.A. 175Notes and Questions 177

II. The United Nations Convention on Contracts for the International Sale ofGoods 178

Contents xv

A. Basic Features of the CISG j 179B. Historical Origins 180C. Cases on the CISG 180

Note on the UNIDROIT Principles 181D. Sphere of Application of the CISG: Articles 1-6 181

1. Article 1 (1 )(a) and the Test of Internationality 181Problem 3-1 182

2. Article l(l)(b) 183Prime Start Ltd. v. Maher Forest Products Ltd. 183Notes and Questions v 185Problem 3-2 ' 186

3. Other Issues Relating to Scope 186Problem 3-3 186Problem 3-4 187Amco Ukrservice & Prompriladamco v. American Meter Co. 187UNCITRAL CLOUT Case 131 191UNCITRAL CLOUT Case 122 191Notes and Questions 192

4. Interpreting the CISG: Articles 7-13 193Notes and Questions 194Problem 3-5 195GPL Treatment, Ltd. v. Louisiana-Pacific Corp. \ 196Notes and Questions , 196

5. Part II of the CISG: Formation of the Contract x 197a. The Offer 197b. Acceptance, Withdrawal, and Revocation of an Offer 197

Problem 3-6 199Problem 3-7 199

c. Acceptance 200Problem 3-8 202Filanto, S.PA. v. Chilewich International Corp. 202Notes and Questions 205Problem 3-9 206Notes and Questions 206

d. Formation of the Complex Sales Contract Under the CISG 208Problem 3-10 208United Technologies International Pratt & Whitney

Commercial Engine Business v. Malev Hungarian Airlines 209Notes and Questions 211

6. Performance of the Contract 212a. Delivery by Seller 213

Problem 3-11 213Notes and Questions 213

b. Conforming Goods 214Problem 3-12 214Problem 3-13 215Medical Marketing International, Inc. v. Internazionale Medico

Scientifica, S.r.l. 215BP Oil International, Ltd. v. Empresa Estatal Petroleos de Ecuador 217Notes and Questions 219

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c. Rejection by Buyer !Treibacher Industrie v. Allegheny TechnologiesNotes and Questions

d. Payment by BuyerProblem 3-14Problem 3-15Unilex, D. 1995-1Problem 3-16

e. Excused Performance(1) Article 79

Problem 3-17Tsakiroglou & Co. Ltd. v. Noblee Thorl G.m.b.H.

(2) Performance Delegated to a Third PartyProblem 3-18Unilex, D. 1993-3.4Notes and Questions

7. Remediesa. Remedies of the Seller

Problem 3-19Notes and QuestionsProblem 3-20Problem 3-21

b. Remedies of the BuyerProblem 3-22Problem 3-23Problem 3-24Problem 3-25

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

Letters of Credit

Sources of Letter of Credit LawLetter of Credit Basics

Problem 4-1Problem 4-2Problem 4-3Problem 4-4Problem 4-5Problem 4-6

Basic Principles of Letter of Credit LawA. The Independence Principle

Problem 4-7Urauhart Lindsay and Company. Ltd. v. Eastern Bank Ltd.

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Notes and Questions / 246Maurice O'Meara Co. v. National Park Bank of New York 246Notes and Questions 250

B. Strict Compliance 251Problem 4-8 251J.H. Rayner and Company, Ltd. v. Hambro's Bank, Ltd. 252Hanil Bank v. PT. Bank Negara Indonesia 256Notes and Questions 259Problem 4-9 261Problem 4-10 . 262Note on Electronic Communications 262Problem 4-11 263

C. The Fraud Exception to the Independence Principleand Enjoining the Letter of Credit 2641. The Problem of Fraud 2642. Sources of Law 2663. Different Types of Innocent Parties 2674. Fraud Cases Not Involving Innocent Third Parties 268

Problem 4-12 268Mid-America Tire, Inc. v. PTZ Trading Ltd. 269Notes and Questions 280

5. Enjoining the Standby Letter of Credit . 281a. The Standby Letter of Credit \ 281b. Sources of Law for the Standby Letter of Credit 282

Notes and Questions 283Problem 4-13 284American Bell International, Inc. v. Islamic Republic of Iran 285Harris Corporation v. National Iranian Radio & Television . 291Notes and Questions 296Problem 4-14 296

Non-Establishment Forms of International Business: Agencyand Distributorships, Technology Transfer, ContractManufacturing, and Franchising 297

Beyond the Sales Transaction: 297Non-Establishment Forms of Business Abroad 298

Agency and Distributorships 299A. Control 300B. Antitrust and Competition Issues 301C. Termination Issues 302D. Intellectual Property Issues 303E. Other Considerations 304

Problem 5-1 304Problem 5-2 305Problem 5-3 305

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1. Local and Regional Legal Requirementsa. German Law

Problem 5-4b. The European Union

Problem 5-5Problem 5-6Notes and Questions

Technology Transfer and LicensingBeyond the Agency/Distributorship to Technology Transfer

A. What Is Technology Transfer and Why Is It Important?1. Technology Transfer in International Business2. Intellectual Property and World Economic Development3. Intellectual Property and Related Topics

Notes and QuestionsB. The International Intellectual Property Legal System

1. PatentsInternational Patent Treaties

2. TrademarksInternational Trademark Treaties

3. CopyrightInternational Copyright Treaties

4. Know-How and Trade SecretsInternational TreatiesNotes and Questions

Selected Issues in Licensing: The Patent License AgreementProblem 5-7Problem 5-8Problem 5-9Problem 5-10Notes and Questions

Business Format FranchisingNotes and QuestionsProblem 5-11Problem 5-12Pronuptia de Paris GmbH v. Pronuptia de ParisNotes and Questions

Foreign Direct Investment

IntroductionA. The Decision to Invest: Medtech Reaches a Crossroads

1. Market Penetration2. Management and Control3. Intellectual Property4. Research and Development Abroad5. Global Competition

B. Mererers and Acauisitions (M&A.1

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II. Global Trends in Foreign Direct Investment 371A. Recent Growth ' 371B. Role of FDI in Economic Development 372

Notes and Questions 372Problem 6-1 373

III. International Investment Law 373A. The Traditional Framework for Protecting FDI: The International

Court of Justice 374Andreas F. Lowenfeld, International Economic Law 374

Notes and Questions 379B. Multilateral and Bilateral Treaties " 381

Andreas F. Lowenfeld, International Economic Law 381Notes and Questions 387Problem 6-2 388Lanco International, Inc. v. Argentine Republic 389Notes and Questions 394Wena Hotels, Ltd. v. Arab Republic of Egypt 395Notes and Questions 400LG&E Energy Corp., et al. v. Argentine Republic 400Notes and Questions 406

C. An Example of a Regional Trade Agreement: NAFTA 408Marvin Feldman v. Mexico . 410Notes and Questions \ 416Problem 6-3 x 417

D. Investment and the World Trade Organization 417Notes and Questions 419

IV. Limits in Corporate Conduct in International Investment: The ForeignCorrupt Practices Act 420

Problem 6-4 421Problem 6-5 421Problem 6-6 422

A. Overview of the FCPA 4221. Persons Subject to the FCPA 4232. Nexus with Intestate Commerce 4233. Corrupt Intent 4234. Proscribed Payments 4245. Persons to Whom Payments Are Made 4246. Purpose of the Payment 424

Notes on the OECD Bribery Convention and OtherInternational Treaties 424

Notes and Questions 425B. Basic Issues Under the FCPA 426

Problem 6-7 426United States v. Kay 426Stichting Ter behartiging Van de Belangen Van Oudaandeelhouders inHet Kapitaal Van Saybolt International B. V. v. Schreiber 434

Problem 6-8 440United States v. Kozeny 440Notes and Questions 443

XX Contents

Note on the U.S. Foreign Investment and National Security Actof 2007 ' 443

V The Transactional Aspects of FDI: Establishment in the European Union,China and Brazil 444A. Introduction 444

Conceptual Outline and Checklist of Foreign Direct InvestmentIssues 446

B. Foreign Investment in the European Union 4481. Access to the Internal Market of the EU: The Four Freedoms 448

Problem 6-9 449Rewe-Zentral AGv. Bundesmon'opolverwaltungfur

Branntwein 449Notes and Questions 451Problem 6-10 451Centros Ltd. v. Erhvervs-og Selskabsstyrelsen 452Notes and Questions 453Note on Protection of Intellectual Property in the EU 453

2. Establishment in the EU 454Problem 6-11 454Philippe Sarrailhe, International Business Negotiations in France 455Ralf Wojtek and Matthias Kiihn, International Business Negotiations

in Germany •, 458Nigel Read, International Business Negotiations in the United-

Kingdom 460Note on Employee Co-determination in Management Issues 462Notes and Questions 463

3. EU Competition Law Affecting Foreign Direct Investment 465a. Abuse of a Dominant Position 465

Problem 6-12 466United Brands Company v. Commission of the European Communities 467Microsoft Corp. v. Commission of the European Communities 471

Notes and Questions 476b. The EC Merger Regulation 477

Tetra Laval BVv. Commission of the European Communities 411Notes and Questions 481Note on the Extraterritorial Application of EU Competition Law 481

C. Foreign Direct Investment in China 4821. China's Economic System 483

Daniel C.K. Chow, The Legal System of the People's Republic of Chinain a Nutshell 483

Notes and Questions 4892. China's FDI Legal Regime and Foreign Investment Business

Vehicles 489a. The Joint Venture 489b. The Wholly Foreign-Owned Enterprise 490

Notes and Questions 490Note on a Gamble by an MNE That Paid Off 491

3. Establishing the Joint Venture 492a. Approval Process 492

Problem 6-13 493b. Capital Investment 493

Contents xx i

c. Management Structure j 494Problem 6-14 494Problem 6-15 494Problem 6-16 495Problem 6-17 496Problem 6-18 496Notes and Questions 516

D. Foreign Direct Investment in Brazil 5181. Brazil's Approach to FDI 519

a. Policy Objectives ^ 520b. Some Background Economic History and Considerations 520c. The Enactment of the Profits Remittance Law 522

2. The Business Climate in Brazil 523Problem 6-19 523Raul Gouvea, Doing Business in Brazil: A Strategic Approach 524Notes and Questions 537

3. Brazilian Laws Relating to Foreign Direct Investment and BusinessOrganizations 538a. Brazilian Business Organizations 538

Problem 6-20 , 539Keith S. Rosenn, Overview of Brazilian Business Forms 539

b. Brazilian Laws Applicable to Foreign Direct Investment , 545Problem 6-21 ' 545Problem 6-22 545Profits Remittance Law 546Notes and Questions 551

7

I.

Protecting Intellectual Property Rights

Overview of Commercial PrivacyA. Rise in Commercial Piracy

Problem7-1B. Categories of Commercial Piracy

1. Copyright PiracyNotes and Questions

2. Trademark CounterfeitingNotes and QuestionsNote on the Anti-Counterfeiting Trade Agreement

3. Patent InfringementsNotes and Questions

C. Counterfeiting and Commercial Piracy in ChinaStatement of Professor Daniel Chow Before the SenateGovernment Oversight and Management Subcommittee

Notes and QuestionsProblem 7-2Problem 7-3Problem 7-4

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Daniel C.K. Chow, Organized Crime, Local Protectionism, and theTrade in Counterfeit Goods in China 571

Oral Testimony of Professor Daniel Chow Before the United States-China Economic and Security Review Commission 579

Notes and Questions 579Note on Responses by MNEs and Foreign Governments 580Problem 7-5 581

II. TRIPs and the Protection of Intellectual Property Rights 581A. Intellectual Property, TRIPs, and the WTO 582

Notes and Questions 583B. Enforcement Obligations Under TRIPs Against Commercial Piracy 584

1. General Enforcement Obligations 584Notes and Questions 585Note on the U.S.-China IP Case in the WTO 585

2. Provisional Measures 587Problem 7-6 588

- C. TRIPs and the Access to Medicines Debate 589Notes and Questions 593Problem 7-7 594

D. TRIPs and the Biopiracy Debate 594Problem 7-8 596Problem 7-9 \ 596

III. Gray-Market Goods and Parallel Imports \ 597A. What Are Gray-Market Goods and Parallel Imports? 597

Notes and Questions 598B. Gray-Market Goods Under U.S. Law 599

Problem 7-10 601K-Mart Corp. v. Cartier, Inc. . 601Lever Brothers Co. v. United States 604Notes and Questions 606Problem 7-11 607Quality King Distributors, Inc. v. Lanza Research International, Inc. 607Notes and Questions 611

8 Dispute Resolution 613

Introduction 613Overview of International Business Dispute

Resolution Issues 613Preliminary Issues 614Choice of Forum 614Choice of Law 615Jurisdiction 615Sovereign Immunity and the Act of State Doctrine 616Resolving Preliminary Issues by Agreement 617Dispute Resolution Other Than by Litigation 617Other Issues 618

Contents XXIE1

II. Arbitration ) 619A. Choosing Arbitration 619

Susan Karamanian, The Road to the Tribunal and Beyond:International Arbitration and the United States Courts 620

Note on Expanding Grounds to Vacate Arbitration Awards 623Jay M. Vogelson, Dispute Resolution in Transnational Business

Transactions 623Notes and Questions 627

B. Enforcing the Agreement to Arbitrate 628Problem 8-1 v 628Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. 628Notes and Questions 633

C. Judicial Review and Enforcement of the Award 633Problem 8-2 634Problem 8-3 634Polytek Engineering Co., Ltd. v.Jacobson Companies 634Stolt-Nielsen SA v. AnimalFeeds Int'l Corp. 638Notes and Questions 644

III. Litigation 644A. Choice of Forum . 645

Problem 8-4 645M/S Bremen v. Zapata Off-Shore Co. . 646Gita Sports Ltd. v. SG Sensortechnik GmbH & Co. KG \ 650Notes and Questions 654Problem 8-5 654Problem 8-6 655Note on the Hague Conventions on Choice of Court Agreements 655

B. Choice of Law 6571. Choice of Law Approaches 657

Amco Ukrservice v. American Meter Co. 658Notes and Questions 662

2. Choice of Law Clauses 663Problem 8-7 663Problem 8^8 663Notes and Questions 664

IV. Jurisdiction 665A. International Law 665

Kathleen Hixson, Extraterritorial Jurisdiction Under the ThirdRestatement of Foreign Relations Law of the United States 665

Notes and Questions 668B. Adjudicative Jurisdiction: Subject Matter and Territorial Jurisdiction 668

Problem 8-9 669Asahi Metal Indus. Co., Ltd. v. Superior Court 670Glencore Grain Rotterdam B. V. v. Shivnath Rai Harnarain Co. 676Notes and Questions 680

C. Sovereign Immunity 680Problem 8-10 681In re Arbitration Between: Trans Chem. Ltd. & China Nat'l Mach.

Import & Export Corp. 681Note on Restrictive Immunity 684

xxiv Contents

D. The Act of State Doctrine J 684Problen8-ll 684Optopics Laboratories Corp. v. Savannah Bank of Nigeria, Ltd. 685FOGADE v. ENB Revocable Trust 688Notes and Questions 691Problem 8-12 691

E. International Comity and Forum Non Convenient 692DeYoung v. Beddome 692Notes and Questions 695

F. Service of Process 696Conax Florida Corp. v. Astrium'Ltd 696Notes and Questions 700

G. Jurisdiction over Parent and Affiliated Companies 701Problem 8-13 701Sturgis M. Sobin, U.S. Courts Can Obtain Jurisdiction over

a Foreign Parent Company 702Itel Containers v. Atlanttrafik Express Service Ltd. 703Notes and Questions 706Problem 8-14 706

V. Conflicts of Jurisdiction: Multiple Proceedings in Different Forums 707FinanzAG Zurich v. Banco Economico S.A. 707Ibeto Petrochemical Indus. Ltd. v. MIT Beffen 711Notes and Questions 714

VI. Evidence and Discovery 715A. Obtaining Evidence Abroad for Use in U.S. Courts: The Hague

Evidence Convention 715Problem 8-15 715Tulip Computers International B.V.v. Dell Computer Corp. 716

B. Obtaining Evidence in the United States for Use in Litigation inForeign Courts 719

In re Clerici 719Notes and Questions 724

C. Recognition and Foreign Enforcement of Foreign Judgments 725Problem 8-16 725Somportex Limited v. Philadelphia Chewing Gum Corp. 726Society of Lloyd's v. Siemon-Netto 729Notes and Questions 734

9 Corporate Social Responsibility 737

Introduction 737Problem 9-1 738Problem 9-2 738Jonathan I. Charney, Transnational Corporations and Developing

Public International Law 738Jordan J. Paust, Human Rights Responsibilities of Private

Corporations 739

Contents XXV

Notes and Questions j 743Problem 9-3 744

II. Codes and Standards of Conduct 745Problem 9-4 745Problem 9-5 745Organization for Economic Cooperation and Development

(OECD): The OECD Guidelines for Multinational Enterprises 746Note on Implementation of the OECD Guidelines for

Multinational Enterprises 750Agenda 21, United Nations Conference on Environment and

Development ~ 751Note on the U.N. Code of Conduct for MNEs 752Anita Margrethe Halvorssen, Book Review: Changing Course: A

Global Business Perspective on Development and the Environment 752Problem 9-6 754Brian D. Israel, Environmental and Safety Management in Large

Companies: Avoiding Pitfalls 754Francis X. Lyons, Sarbanes-Oxley and the Changing Face of

Environmental Liability Disclosure Obligations 151Notes and Questions v 760Charles M. Denton, Scope of ISO 14001 760Notes and Questions \ 762A Guide for the Perplexed: Creating a CSR Program for Your

Company 762III. Exporting Hazard: Legal and Ethical Considerations 763

Problem 9-7 763H. Jeffrey Leonard, Confronting Industrial Pollution in Rapidly

Industrializing Countries: Myths, Pitfalls, and Opportunities 763Maureen A. Bent, Exporting Hazardous Industries: Should American >

Standards Apply ? 764Notes and Questions 765Eric Neumayer, Greening Trade and Investment 766Organization for Economic Cooperation and Development:

Council\Recommendation on the Application of the Polluter-PaysPrinciple to Accidental Pollution 768

Michael P. Walls, Disclosure Responsibilities for Exporters 769IV. Liability for Industrial Accidents 770

Problem 9-8 770Stephen C. McCaffrey, Accidents Do Happen: Hazardous Technology

and International Tort Litigation 111Problem 9-9 772In re Union Carbide Corp. Gas Plant Disaster at Bhopal, India in

December 1984 112Shyam Divan and Armin Rosencranz, The Bhopal Settlement 115Michael J. Bowman, The Convention on Civil Liability for Damage

Resulting from Activities Dangerous to the Environment 780Notes and Questions 781

xxvi Contents

V. The U.S. Alien Tort Statute j 781Abdullahi v. Pfizer, Inc. 783Notes and Questions 793Problem 9-10 793

Table of Cases 795Index 801