• Management & Information Systems Review
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• v.36 no.2
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• pp.187-206
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• 2017

This study empirically investigated the direct and indirect effects of inter-organizational relationships control mechanisms (IRCM; prudent partner selection and complex contract) on the decrease of inter-organizational risks (i.e., relational risk and performance risk). The empirical results showed that prudent partner selection has a positive impact on the degrees of inter-organizational cooperation and the levels of inter-organizational information flow. The effects of complex contract on the inter-organizational cooperation and information flow were not significant. In the results of the decrease of inter-organizational risks, it was observed that inter-organizational cooperation has significant positive effects on the decrease of both relational risk and performance risk. It was found that partner selection only influences the decrease of performance risk. The impact of inter-organizational information flow on the decrease of inter-organizational risks was not statistically significant. The indirect effects of IRCM on the decrease of performance risk through inter-organizational cooperation were also empirically demonstrated. The significant impact of inter-organizational cooperation on the decrease of risks implies that high levels of collaborations among employees decrease the risk of opportunistic behavior as well as the possibility of low degrees of performance through cooperative efforts. According to the results of the effects of risks on supply-chain performance, only the impact of performance risk was negatively significant. This result points out that the low levels of performance cause delays in delivery and product launch, deterred production and delayed market response, and these deteriorated managerial activities necessarily decrease the degrees of supply-chain performance.

• Korea Trade Review
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• v.43 no.4
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• pp.51-68
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• 2018

This study examined the scope of damages resulting from types of loss under the CISG and the PICC(2016). The CISG and PICC stipulate the rights of aggrieved parties to recover losses under the full compensation principle, but the PICC features more specific provisions regarding damages compared to the CISG. Therefore the PICC might provide practical insight resolving problems concerning damages under the CISG. There are direct and incidental losses, consequential losses, lost profit, and loss of chance that can be claimed by aggrieved parties under the CISG or the PICC but the scope of claimable losses differs by cases. For example, even though there are no specific clauses in the CISG or the PICC, some losses might include based on the requisite of damage under CISG or PICC. Therefore, it is important to know standards in which losses are covered by these agreements. In conclusion, related parties who engage in international trade should understand the requisite and limitation of damages, and need to clearly define specific losses that might not be governed under the CISG or the PICC.

• Korea Trade Review
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• v.42 no.1
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• pp.257-281
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• 2017

It becomes a common feature of business practices in International Trade to use a standard terms for the formation of their contracts. However, because of differences in legal systems, business practices and so on in their own countries, there have been many conflicts and disputes happening between parties concerned in International Trade. The CISG, which has long been used as the governing law in many cases of International Trade, could not be free from those conflicting issues in its usage and application. This study analyzes the "Black Letter Rules" which was adopted by CISG Advisory Council in 2013 to provide an effective way of resolving the conflicting issues regarding the inclusion of standard terms in International Trade Contracts under the CISG. This study scrutinizes, the relevant rules and requirements for the inclusion of standard terms into a contract. It also deals with the offeror's duty of making clear reference to the standard terms, transmitting the contents of standard terms to the other party. As the other rules for the inclusion of standard terms, this study reviews the principle of denying the inclusion of standard terms after the formation of contracts, exclusion of surprising or unusual terms, preference of individually negotiated terms to the standard terms, contra preferentum rule and preference of the "knock-out rule" to "last-shot rule" in resolving the issue of so called, "Battle of Forms." Lastly, on the basis of analyzed opinion, this study suggests the practical implications for the people working at International Trade-related business sector to facilitate International Trade.