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Commercial
OFLAW
THESTUDY
E¡6
Le&ü*¡tT
1 commerciallaw is the bodyof law that governstrade and commerce.Discuss
thesequestionsin smallgrouPs.
lWhatbodiesoflawgoverncommerceinyourjurisdiction?
2 Howwoulda contractd¡sputebetweentwo companiesfrom different
jurisdictionsbe settled?
3 Whichinternational bodiesdo you knowthat set guidelinesfor commercial
transactions?
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2 Readthe text belowand decidewhetherthese statementsare true or false
!. Commercialtawis a generalterm for a numberof diverseareasof the law
whichregulatetrade and commerce.
2 Contentiouswork includesthe draftingof contractsand advisingclients'
3 The UniformCommercial Codeappliesto commercial transactions in all of
the membernationsof the European Union'
4 TheWorldTradeOrganisation checksto see if countriesfollowthe trade
agreementsthey havesigned'
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3 Lookat the areasof activityin commerciallaw mentionedin the first paragraph
of the text aboveand answerthese questions.Use the glossaryif necessary'
1 Whichfield dealswith the legalrightsassociatedwith productsof the mind,
such as patents,copyri$htsand trademarks?
2 Whichfield involvesthe lawsand regulat¡ons governingmarketbehaviour,
particularly
agreementsand practices
that free enterprise?
restrict
3 Whichinstitutiondealswith the supplyof creditinformationaboutbusiness
organisations to other businessesand financialinstitutions?
4 Whichfield concernedwith the legalrelationships
is betweenthe shipper(or
owner)of goods,the carrier,and the receiver/consignee of goods?
5 Whichfield focuseson the laws regulatingmoneypaid to the governmentin
connectionwith commercialtransactions?
4 Choosethe correctwordor phraseto completethese definitions.
1 'Agency'is the term for the relationshipof a personwho acts in additionto /
on behalfof / on accountof anotherperson,knownas the principal.
2 Bankruptcyis when someonecannotpaywhat they owe/ own/ won,and all
their propertyis surrendered to a court-appo¡ntedpersonwho liquidatesthe
propertyto pay the claims of creditors/ owners/ debtors'
3 A securedtransactionis a loan or credit translation/ transaction/
terminationin which the lender/ Ioaner/ debtoracquiresa securityinterest
in certainpropertyownedby the borrowerand has the rightto repossessthe
propertyif the borrowercannot pay.
4 Negotiableinstrumentsare documentswhichrepresenta rightof charge/
payment/ creditfora specifiedsum of moneyon demandor at a definedtime.
law
Unitó Commercial
8 Fo
Lüstem&mgx:Pr*f&{emf&tsrT}mereiat[awyen
of,[aw,commercia[
L
tawitsetfencompasses manydistinctfietds
Justas commercia[
lr
lawyersoftendealwithdifferentareasofcommerciatactivityinthecourseoftheir 2
c a r e e r s . Y o u a r e g o i n g t o n . u r t h e p o d c a s t o f athe
n i website
n t e r v i eof
wthe
w i tatumni
hMichaelGrant'an
on
associate at a commercltiu* firm'whichappears 3
association of an Austratian university'
questions'
5 (ie.r Listenano answerthese
to university? 4
1 Whyhas he oecidedto return
students regardingcareerchoices?
2 What does he adviselaw
6(ie'rListenagainandticktheworkhedidbeforejoiningRavenstone,Altman
and Ofner,LLP'
1 PreParing noticesof dismissal
tr
positionsat his firm T
i int"rui"*ing juniorlawyersfor
technicaldocuments
n
3 AnalYsing
4 SubmittingPatentaPPlications
tr
l ft
5 WritingPatentdrafts
6 Draftingmaritimelegislation
T rc
7 Resolving charterpartydisputes
T
f t
8 Handling cargoclaims
9 LitigatingshiPcollisions
T
axs*:&*werh$qef;"Bet&ons
Lartgwm*e
ln expressedbYthe verb' We
:
fl";T:[:1ifi E*?]; Íili;'; ;;;' ot''
0""'o' u'ln"'' i'r'
*r.'
:ilil:: an actionis"'carried out('n*íi' Adverbscan also be
describehow ""'"1'"¡
particutartyíntlresting'
used to qualifyadjectives(e'g'
TaUnderlinetheadverbsinthesentencesbelowfromListeningl-andthen
have(a-c)'
decidewhichfunctionthe adverbs
a describingtime of action
b describingmannerof action
an adjective
c qualifYing
of e-Lawat MonashUniversity'
1 He'scurrentlyundertakinga Master's
of takinga complexcommercial
2 There,ssomethingaboutthe challenge
t r a n s a c t i o n a n d e x p r e s s i n g i t c l e a r | y a n d c o n c idetailed
s e | y t h adescriptions
t r e a l l y a p pof
ea|stome.
had to write patent drafts, whichare incredibly
3 I also
the inventionsin preciselegalterms'
times extremelydifficultand demanding'
4 lt was interesting,althoughat with the
I likedbest was workingclosely
5 But l quicklyreaiseOthai what
or enforcingpatents'
other lawyerson liti$ation'defending
6|usua||yspendmos-tofthedayreviewingdocuments,draftingagreements'
answeringemails'
meetingwith clientsand' of course'
placedin relationto the verbs?
b Whereare me adverbs
8 Foreach of these sentences,decidewhichadverbsdon't fit.
1 My work often/ carefully/ regutartyinvolveslitigatingcharter party disputes,
althoughI occasionally/ sometimes/ remarkablyhandlecollisioncases as
well.
2 Maritimesalvageclaims can be ctosety/ extremety/ incrediblychallenging
due to the complicatedlegalsituation.
3 The remarkably/ quickly/ extremelyfast pace of change in the area of
informationtechnologylaw means that lawyersat our firm havero mainty
/
regularly/ often attend seminarsabout the effects of new legislation.
4 Researchingtechnicalinnovationscarefuily/ extensivety / extremelyis
a(n) very/ extremely/ regularlyinterestingstep in the processof writinga
patent draft.
Speakins
t: lnternshíps
Listening
r, MichaelGrantdescribed
hisinternship
with a marit¡me
lawfirm.lt is
forlaw-schootstudents
to workinthesummer months asaninternin a law
T, government
department,
non-profit
groupororganisation.
Aninternshipcanbepaid
unpaid.
Someinternships
leadto coursecredits
whichcounttowardsa lawdegree.'
Discussthese questionswith a Dartner.
1 Haveyou done an internship?lf so, describethe organisation
and your
dutiesthere.
2 what do you think makesan internshipa valuableexperience? what can be
gainedfrom it?
3 Whatwouldyour idealinternshipbe?
rt analysis:
Letterof applíeatisn
for an
ennsFrip
studentsoftenwritea letterof apptication
to apptyforaninternshipin response
ro a
ificadvertisement.
However, it isatsocommon fora student
to writewhatis known
a prospectingletter,or letterof interest,in whichthe senderasksif thereareanv
eningsfor internsat the company or institution.
Quicklyread the letter on page 64 written by a student. ls it a prospecting
letter or a letter of applicationreplyingto a specificadvertisement?
Readthe letteragainand answerthese questions.
1 What kind of organisation
is she applyingto?
2 Whichareasof the law is she interestedin?
What legalwork experiencehas she had?
Whichdocumentsare enclosedin the letter?
the adverbsused in the letter.why do you think the writeruses so
adverbs?What effect does it have?
Unitó Commercial
law
13
,:
ít
7:.
JuliaSchwende *).
1 Marktgasse17 :i.
1210Vienna "*
Austria v:
Í.
i.
l::
,:
2 1 November2008
v.,
ia:
.;.
k'
n
3Robson,Mumsenand MeechLLP i::
t;
?
8 HawthornRoad .:
SaffronWalden .r!.
x
Essex f,l
C B 1 13 K L t:
t;
!:
a DearSir or Madam
YoursfaithfullY
JuLia/chñenae
13 Matchthe sectionsand ideaswhichshouldbe includedin a letterof
application (a-m)withthe corresponding
for an internship sentencesin the
enoe letter(1-18). Somesections/ideasare used morethan once.
-^ 1-7
>t ll
a Reference to howyou found out aboutthe internship
enna b Youraddress
Jstfla c Reference to thingsrequestedin the ad (writingsample,references,etc.)
and enclosedin the letter
2008 d Recipient's address
e Reasonsfor your interest in internship
f Descriptionof your legalwork experience
g Introduction, sayingwho you are
h Date
i Descriptionof yourstudiesand coursework
j A 'callfor action'whichclosesthe letter
k Salutation
I Reasonfor writingletter
m Detailsof any personalqualities, qualifications
or skillsthat makeyou right
for the internshio
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F r ¡ d é q & s s 3e Ec $ o
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t l \Y
d t !U #
E fff it* g & A e
E
ef fFi BsH Á S m F P itsrd $ 3qB?8ry
nd l\k&*4W!;üY$ SetAbt E€EF
rit$mg
x: Le€ten'
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Writea letterof applicationin responseto the internshipadvertisement
in
Exercise1,4.Be sure to includeall of the sectionsand ideasnecessarv.
Unitó Commercial
law
LAWIN PRACTICE
Lead-$r¡
| n t e r n s h i p s a r e V e r y o f t e n t h e f i r s t e x p e r i e n chave
e y ooffices
u n g t aacross s h aqtobe'
w y e rthe veofthereatitiesof
in trre wort<piu... Nunv'turge tegattirms
gtobatisation
ámptoyinq lawyers of manynationatities'
with a partner'
17 Discussthese questions
the term globalisation?
1 What do you understandby economies?
to the üobalisation of the world's
2 What factors navecontributuo
of globalisation for:
3 Whatare the implications
lawYers?
a businesses? b commercial
asertts
3; Kstesf ecm!'*ertEe[
R.eadim$
M o s t c o m p a n i e s e n g a g e d i n i n t e r n a t i o n a l t r is
a dcommontv
e m a k e ugoverned e na
s e o f a g bv tstorepresentthem
principat
abroad. Therelations;;ffi; ;;;, _.rJ its
andthe European Ünionhassoughtto harmoniset
commercia[ agencyagreement,
to giveagentsgreaterprotection'
memberstates,uq.n.},tu*, in order
T h i s t e x t i s t a k e n f r o m t h e i n t r o d u c t i o n t o a d o c u agreements'
mentwrittentoinformlawyersabout
the law concerning commercia[ agency
recent chanqes in
lsReadthetextanddecidewhetherthesestatementsaretrue(T)orfalse(F).
goodsand services
agentis a personwho sells
1 under EU law,a commercial
on behalfof a PrinciPal'
2Agentsaregenerattypaidaflatrate;thatis'achargethatisthesamefor Re
agreements base
oncea customer l}c
agency
. ilL?,ili; wi' oftenabandon
becomesestablished'
definedbvEU
lTheroleo.fcommercialagentsis.wellknor¡¡n.Theyactasindependentintermediaries
representingffi;;;'tt"' i"'t'" ;'**' ; ":#'":':1-agent is
havingcontinuing
,*t o i, ul"rr-employed,intermediary
Directiveg6/653asa person
I',t""
il,tüx L*:w;:mnl'"lli
***::,:,';"lx
r::ffi * rr p;;;;;from ttreirprincipals,but arrangesales
directly
his principal...,.rhey do nor b"y
IHXT"T;"""TT'lllllug
Hfi,ffiil*filif.T".:H*'T:i*'*run:ff desa
provi
T:H::llffi'triffisupplier,o radert
, É;;*:l*"""-i,ffi a foreign
': :11'::::"" ""'{
o"n"rrui"'* o""tt*ut
market'By
ñ;;;;"
convenienr
:ffi:H?liT:J:"#"'J"':
"nuutirrg
*il:*i:h".:T:f
*i**;tffi
#it"$*:ilfr
'j*};,'Jln-i"';tJ*;J:;*"**tt"X':""'"mm
:ffi
:tff
H:H*,i;;;;';:;;;u. *urk".-ton a'no cufe,no pav'basis'
Remd$*ug
4: fl#**fl$?trscñe*
e{Xtr$}üy
##ffigr&cfx
Ihelcc'z
Model commerciat Agency contract
iscommonty usedbybusinesses
entering
a
newmarket, andisanexampte of a standard
form¡contract.
ltsprovisions
arebasedon
prevailing
practice
in international
traderatherthannational
laws.
what are the advantages of usinga standardform contractbasedon common
businesspracticesratherthan negotiatingcontractsaccordingto domesticraws?
what kind of provisionswourdyou expectto find in
a commerciaragency
of contract?
rll' ChanceComputingis a UK-based companythat producesbudgettaptop
computersfor schoorchildren. lt uses agentsto sell its productsto other
'f countries.Readthe crauseson the next pagetaken
from chancecomputing,s
standardcommercial agencycontractand answerthesequestions.
1 Canthe agentset the priceat whichgoodswiil
be sordto third parties?
2 Underwhat circumstances can the contractbe terminated?
I
3 What is the governinglaw?
¡T
4 lf the principalbreachesthe contract,what court
r hasjurisdiction?
commercial agencyagreement
Internationarchamberof commerce¡s an organ¡sation of businessesfrom over
Jntriesthat worksto promoteand support globaltrade
and globaltsat¡on
unitó commercialtaw
e
businessfor the Principd anü
The Agent shall endeavourto obtain
saidPrincipal to the best of his
is bound to servethe interestsof the
ail information necessaryfor the
abitity.He will do his best to provide
purposeof promoting b"i"t"' and especiallyinform the Principal
immediateiy about every order received'
and paymentconditions
tt" *uy rroid"-oiut" toá tne prices' deiivery
of the Principalwithout his consent'
gThecontractshallcomeintoforceonl0February2006andshallbe
valitl tbr an indefinite Period'
sherethecontracthasbeenagreedforaflredperiod,itshallbe
expectedfbrthesameperiodprovidedthatnoticeofterminatioi"o."]'
nothavebeensewed,byregisteredletter'atleastsixmonthspriorto.
the end of a calendarquarter'
indefinite period' it may
strere the contracthas been agreedfor an
by registeredletter' six
be terminatedby either party thereto giving'
quarter'
months' notice irior to the end of a calendar
l0TheprovisionsoftheEECCouncilDirectiveoflsDecember1936
ontheco-ordinationofthelawsoftheMemberStatesrelatingto
In other
self-employed agents(86/655/EEC)applyto this agreement'
is to be consulted'
respects'the law of the domicile of the Agent
ltArrydisputesarisingoutoforinconnectionwiththisagreementshall
where the claimant
be deciiledby the cámpetentcourt in the area
has his residenceor registeredoffices'
24Takeitlnturnswithapartnertoexp|aintheprovisionsofthecontractusing
$Á[pl¡]vour ' own words.
l A N s w EI R
iiüüil pexmLss'ankom üe prr'na4al
Ctause4 sat¿süaL üe a4enbneed's
EXAMpLE:
eb'
tn üange prkx-s and' c'ond)ü'onsof saJ'e'
2: Rote-ptay:
Speaking options
discuss¡ng
discussesthe options
31 Fo|lowing his discussionwith JennyMi||er,C|iveSanborn
avai|ab|etoChanceComputingwithaninternwhoisshadowinghim.Withapartner'
r o l e - p l a y t h e i r c o n v e r s a t i o n . D i s c u s s t h e v a r i o u s o p t i o n s t h a t a r e a vcase'
ai|ab|eto
possibleoutcomes.considerthe best
chancecorpuiing, togetherwith their
worst case and most likelyscenartos'
Studentl:YouareC|iveSanborn.SummarisethepositionthatChanceComputing
are in'
student 2: you are the intern shadowingclive. suggest some optionsfor the
companybasedon the informationin this unit'
merchant
j commerce
,Tugot"t'*
l.--;:-.-^,
. .".:':',
-,andsentencesberowrromtheunitusingthe
phrases
;::ff:[,l:T;;il?|"$:ie
by for into of of on on