1Jim Chester / Klemchuk Kubasta 1

Legal Aspects of International Sales

Presented by:

Jim ChesterJim ChesterJD, LL.M, CHB, CCS

Klemchuk Kubasta LLPDallas, Texas

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The Legal Aspects of International The Legal Aspects of International SalesSales

Introduction: The "myth" of IBT law Why is IBT important? Managing risks, including: - credit risk / financial risk

- market risk - legal risk

- political risk

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Sources of Law & Legal Sources of Law & Legal TraditionsTraditionsComparative legal traditions

Common Law (US, UK & former colonies)- History- Sources of Law

- Hierarchy- Stare Decisis

Civil Code (Asia, Latin America, EU)- History- Sources of Law- Hierarchy- Role of case law

Special/Hybrid Systems - Islamic Law- Chinese Law

Modern Trends in both traditions - toward harmony

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Ways of “Going Ways of “Going International”International”

Exporting Distributors Licensing/Franchising Foreign Direct investment (FDI)

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ExportingExporting- Getting sales

-Direct-Sales Agents/Employees

- Getting paid- Export/Import regulation- Other Regulations

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ExportingExporting

The International Sales Contract- Differences with domestic Ks- Key provisions/terms

- Choice of law- Choice of Venue/forum- Translations- Currency- Payment- Force Majeure- Notice

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ExportingExporting

Vienna Sales Convention (CISG)- History- Current status- Applicability (opt in /opt out)- Key provisions- Compare/contrast UCC & CISG

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DistributorsDistributors- Choosing a distributor

- Key provisions/terms- Local laws

- Exclusivity- Cancellation/non-renewal

-IP License

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Licensing / FranchisingLicensing / Franchising- Four Basic Regimes of IP Rights

- Trademarks- Trade Secrets- Copyright- Patent

- IP outside the US- “First to file” v “First to use/invent”

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Foreign Direct InvestmentForeign Direct Investment Branches v. Subsidiaries Types of Subs

- “Greenfield”

- Merger/Acquisition

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Foreign Direct InvestmentForeign Direct Investment Joint Ventures

- Contractual

- Equitable

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FCPA / Anti-BriberyFCPA / Anti-Bribery

FCPA prohibits bribing of foreign government officials.

Who is subject to the FCPA?

What is prohibited?

What is allowed?

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FCPA / Anti-BriberyFCPA / Anti-Bribery What are the penalties for violations?

Red flags

Helpful hints- Require FCPA compliance in contracts - Avoid cash or bearer instruments- Carefully screen job applicants for foreign offices

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Questions?Questions?

Email: Jim.Chester@kk-llp.com

Direct: 214.367.6000

Klemchuk Kubasta, LLP8150 North Central Expwy.,

Suite 1150Dallas, Texas 75206

www.kk-llp.com