• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.429-460
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• 1999

The letter of credit is quintessentially international. In the absence of international legal system, a private system based on banking practices has evolved, commanding the adherence of the international letter of credit community and providing the foundation of th reputation of this instrument. To maintain this international system, it is vital that international standard banking practice should not be subject to local interpretations that misconstrue or distort it. The UCP is a formulation of international standard banking practice. It is neither positive law nor a "contract term" in any traditional sense and its interpretation must be consonant with its character as a living repositary of international understanding in this field. As a result, the interpretation and application of specific articles of the UCP must be consistent with its evolving character and history and with the principles upon which sound letter of credit practice is predicated. This study, especially, focuses on article 13 and article 14 of the UCP500. Article 13(b) of UCP500 stipulates that banks will have a reasonable time, not to exceed seven days, to examine documents to determine whether they comply facially with the terms of the credit. The seven-day provision is not designed as a safe harbor, because the rule requires the issuer to act within a reasonable time. But, by virtue of the deletion of the preclusion rule in the document examination article in UCP500, however, seven days may evolve as something of a safe harbor, especially for banks that engage in strategic behavior. True, under UCP500 banks are supposed to examine documents within a reasonable time, but there are no consequences in UCP500 for a bank's violation of that duty. It is only in the next provision. Courts might read the preclusion more broadly than the literal reading mentioned here or might fashion a common-law preclusion rule that does not require a showing of detriment. Absent that kind of development, the change in the preclusion rule could have adverse effects on the beneficiary. The penalty, strict estoppel or strict preclusion, under UCP500 and 95UCC differs from the classic estoppel. The classic estoppel rule requires a beneficiary to show three elements. 1. conduct on the part of the issuer that leads the beneficiary to believe that nonconforming documents do conform; 2. reasonable reliance by the beneficiary; and 3. detriment from that reliance. But stict preclusion rule needs not detrimental reliance. This strict estoppel rule is quite strict, and some see it as a fitting pro-beneficiary rule to counterbalance the usually pro-issuer rule of strict compliance.

• The Journal of Society for e-Business Studies
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• v.24 no.3
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• pp.1-18
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• 2019

Due to the great advances in e-Marketplace and changes in type of items purchased from the online market, it has been dramatically increased the demand of the storage and transportation under the special conditions such as restricted temperature. Especially, the cold chain needs the way to transparently measure and monitor the entire network in realtime because it has a very complicated structure and requires totally different criteria at the every different steps and items. In this research, it has been presented the performance evaluation metrics to make contract using service level agreement (SLA), the way to apply the smart contract based on blockchain, the structure of blocks, service platform and application in order to build cold chain which can prevent the risk factors by measuring and sharing information in realtime using block chain technology. In addition, we have proposed the way to store the measured performance and reputation of each player in the block using smart contract based on SLA. With the presented framework, all players including service providers as well as users can secure the information for making the rational decisions. When the service platform is actually built and operated, it seems possible to secure the information in transparently and realtime. Also, it is possible to prevent the risk factors or prepare the preemptive plans to react on them.

• Journal of Industrial Convergence
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• v.22 no.4
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• pp.1-9
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• 2024

Smart factories represent production facilities where cutting-edge information and communication technologies are fused with manufacturing processes, reflecting rapid advancements and changes in the global manufacturing sector. They capitalize on the integration of robotics and automation, the Internet of Things (IoT), and the convergence of artificial intelligence technologies to maximize production efficiency in various manufacturing environments. However, the smart factory environment is prone to security threats and vulnerabilities due to various attack techniques. When security threats occur in smart factories, they can lead to financial losses, damage to corporate reputation, and even human casualties, necessitating an appropriate security response. Therefore, this paper proposes a security authentication mechanism for safe communication in the smart factory environment. The components of the proposed authentication mechanism include smart devices, an internal operation management system, an authentication system, and a cloud storage server. The smart device registration process, authentication procedure, and the detailed design of anomaly detection and update procedures were meticulously developed. And the safety of the proposed authentication mechanism was analyzed, and through performance analysis with existing authentication mechanisms, we confirmed an efficiency improvement of approximately 8%. Additionally, this paper presents directions for future research on lightweight protocols and security strategies for the application of the proposed technology, aiming to enhance security.