• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.23-42
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• 2018

This study compares the SGA and CISG to find out the difference of the criteria for calculating damages. and it intends to give some important points in trade practice. The damages is intended to compensate the victim for the breach of contract but there are differences between SGA and CISG as follow. First, the SGA and CISG have the same purpose of claiming damages. Both laws and regulations are subject to a full indemnification to compensate for the breach of the contract by the amount equivalent to the loss suffered by the victim. Second, in the general principle related to the calculation of damages, both law enforcement officials are required to be able to predict damages caused by breach of contract. In the case of SGA, however, a foreseeability test or remoteness of damages is required for the relationship between the contract violation and the loss. In other words, it can be said that the causal relation between the contract violation and the damage is strictly applied rather than the CISG. Finally, both laws and regulations of SGA and CISG have a big difference in criteria for calculating damages. In the CISG, after the contract is canceled, it is classified according to the existence of the alternative transaction and the damage amount is calculated based on the contract price. On the other hand, the SGA estimates the loss based on the market price at the delivery of the goods, reflecting the change in the market price instead of the contract price of the goods.

• Journal of Arbitration Studies
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• v.8 no.1
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• pp.269-291
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• 1998

Change of circumstances subsequent to formation of international business contract raises two issues on both parties' obligation to perform business transaction concerned. One is impossibility of performance due to events beyond control of parties and the other is adaption of contract. In Anglo-American Law such an impossibility of performance is provided by the doctrine of Frustration and the doctrine of Practicability(UCC 2-615). In practice a "force majeure" clause should be included in contract defining the parties' mutual rights and duties if certain events beyond their control occur to safeguard themselves against possible impossibility. On the other hand the tendency of international trade is that alongside sales contracts, there are contract for supplies, for furnishing raw materials, for building industrial complexes, and transferring technology. One characteristic of these agreements is their duration. For in order to carry out these agreements, it is necessary to complete a series of closely interrelated operations which, in the normal course of events, take place over a number of years. It is often difficult for the parties, when finalizing their contract, to have a full grasp of all of the factors governing their relations. With a view to resolving difficulties such as compromise the continuous performance of a contract, parties may insert a regulatory clause in their contract providing for intervention by a third person after stating in specific and detailed fashion the circumstances in which their contract may be adapted.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.7-37
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• 1999

Electronic Commerce is the new type of business transaction, which sells and advertises the products and services by using the Internet, which is used by more than 500,000,000 people in the worldwide and is spread rapidly to the world. There are no limitations in cyberspace, for example, time, space, and country boundary because every business can be processed in this cyberspace. The use of modern means of communication such as electronic mail and electronic data interchange for the conduct of international trade transactions has been increasing rapidly and is expected to develop further as technical supports such as information highways and the Internet become more widely accessible. However, the communication of legally significant information in the form of paperless messages may be hindered by legal obstacles to the use of such messages, or by uncertainty as to their legal effect or validity. This obstacles pose many difficulties for conducting EC through Internet. The purpose of this thesis is to suggest several issues to be taken into consideration in conducting EC in near future. For this purpose, the article will first take up subjects of what is the present state of EC, what are the legal issues emerging therefrom.

• International Commerce and Information Review
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• v.10 no.2
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• pp.283-304
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• 2008

According to globalization and localization of world economics international trade payment method was also changed. A traditional payment was Letter of Credit basis, however it is being increased to various methods such as remittance, documentary collection(D/P, D/A) and open account. In order to acquire a secure export payment, exporters prefer to L/C basis which is guaranteed by a reliable bank. However, the L/C should bear a security so that importers would rather documentary collection than L/C. The reasons for the preference of collection payment rather than L/C are a low commission cost, the conversion of buyer's market from seller's market due to severe competition in the world market, transaction increase between main office and branches and a right to control the goods until executing the payment by exporters. Besides of them, collection payment can handle safer and faster than open account basis. However, the collection payment has a risk which it isn't guaranteed by bank for the payment so that I would suggest countermeasures to minimize the payment risk utilizing the collection basis as follows; using export credit insurance system, a large domestic credit report provider such as D&B for absolutely fresh and new information, a collection proxy service for overseas deferred credit and suggestion specifying to order B/L not straight one on consignee in order to transfer the right of ownership with endorsement without problem.

• Asia pacific journal of information systems
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• v.10 no.4
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• pp.1-20
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• 2000

Electronic Data Interchange(EDI) has the potential to improve business operations by expediting the exchange of business documents. It will also provide substantive operational and strategic benefits to the trading firms. However, the successful implementation of EDI systems requires the mutual trust and cooperation between the trading firms. The extent of EDI diffusion and performance depends on inter-organizational, intra-organizational, as well as innovation factors. Researches based on the sociopolitical process framework in the use of IT, organizational theory, resource dependence theory, and innovation diffusion theory have identified 3 inter-organizational variables(transaction climate, dependence, external IS expert support) and 4 intra-organizational variables(strategic IS planning, infrastructure, top management support, education/training,), and 3 innovation variables(compatibility, relative advantage, cost) that affect EDI diffusion. In this study, a multi-dimensional measure on EDI diffusion has been developed to capture the external and internal integration. Then, the influence of these 10 variables on the extent to which the EDI adopting firms pursue diffusion has been examined. Whether more diffusion leads to superior performance has also been studied. International trade managers from 107 firms in the trade industry participated in a field survey. The results based on a structural equation model(SEM), developed using AMOS, provide quite a strong support for the hypothesized relations. Both education/training and IT infrastructure influenced external and internal diffusion of EDI systems. Internal diffusion of EDI enables the adopting firms to improve operational and strategic performance, whereas external diffusion contributes only to operational performance.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.17
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• pp.7-35
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• 2002

In many international financing transactions Korean companies are required to issue a guarantee. Thus far, however, legal issues on international guarantees have not been fully discussed in Korea. This is partly because most of the international guarantees are governed by a foreign law such as English law or the laws of the State of New York. In this articles the author examines major concepts or terms and conditions of a typical international guarantee, e.g., language on consideration, primary obligor, joint and several guarantee, unconditional and irrevocable guarantee, continuing guarantee, right of subrogation, representations and warranties, covenant or undertaking, currency indemnity, assignment, participation, governing law and jurisdiction clause, etc. For reference, standard forms of a guarantee and a standby letter of credit are attached to the article. In examining the terms and conditions, the author compares them with similar or equivalent concepts under Korean law. The author further discusses some Korean law issues that may arise under international guarantees governed by a foreign law. These issues include the application of the ultra vires doctrine under Article 34 of the Civil Code of Korea, the validity of an international guarantee which a Korean company has issued in violation of the guarantee ceiling set under Article 10 of the Law on Monopoly Regulation and Fair Trade of Korea and the validity of an international guarantee which a Korean party has issued in violation of the Foreign Exchange Transaction Law. In addition, the author discusses some issues under a so-called independent guarantee and a standby letter of credit. In this regard, reference is made to the Uniform Rules for Demand Guarantee (URDG), International Standby Practices (ISP98) and the Convention on Independent Guarantees and Stand-by Letters of Credit adopted by the United Nations in 1995. Finally, the author examines major terms and conditions of typical comfort letters and discusses some legal issues, such as the binding force of the comfort letter. In dealing with the issues the author underscores that to the extent the issues are not properly dealt with by an international norm such as Uniform Customs and Practice for Documentary Credits or ISP 98, the issues must be analyzed by reference to the governing law of the relevant instrument.

• Journal of Korea Trade
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• v.26 no.7
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• pp.185-202
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• 2022

Purpose - As overseas direct purchase transactions using e-commerce increase, the scale and scope of international trade are diversified, and the transaction volume using online platforms in e-commerce is increasing. The e-commerce market share will become more important because it is not only a medium connecting B2C, but also because it will expand the scope of trade. This study aims to reveal the factors that influence purchase intention according to Korean-Chinese consumers in e-commerce. In addition, the study has comprehensively confirmed the influence between each factor in the e-commerce environment by integrating and analyzing the characteristic factors of online information sources and platforms in one structural equation. Finally, the study confirmed that there is a significant difference in the influence relationship between Korean and Chinese consumers. Through this, the study will contribute to content production in the e-commerce market according to the target market and the expansion of the mutual entry of Korea and China. Design/methodology - This study aims to confirm the mediating effect of the details of the online information source characteristics and platform characteristics when the perceived quality affects purchase intention. It is confirmed that the factors affecting Korean and Chinese consumers differ. Findings - It was confirmed that differences exist according to the group of Korean or Chinese consumers for the entire research model. In the case of Korean consumers, the mediating factors when perceived quality affects purchase intention are expertise, reliability, entertainment, informativity, and convenience; in the case of Chinese consumers, the factors are expertise and informativity. Originality/value - This study proved that Korean and Chinese consumers cannot be regarded as having the same characteristics, and therefore, strategies aimed at each e-commerce market should be differentiated. In addition, although previous studies on online information sources and platform characteristics were not integrated, this study confirmed a significant influence relationship among the factors that could affect purchase intention in the actual e-commerce environment.

• The Journal of the Convergence on Culture Technology
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• v.9 no.5
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• pp.493-499
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• 2023

Trade credit refers to a transaction where a product supplier allows an distributor to defer payment for a certain period of time for the purchase cost of the products. This practice is generally permitted as a means of differentiation between competing companies. Such trade credit is commonly granted based on the volume of transactions, aiming to increase customer orders. From the perspective of the distributor, trade credit allows for a deferred payment period for the purchase cost, leading to cost savings in inventory investment. These cost savings in inventory investment can be a factor in reducing selling prices with the aim of increasing customer demand. In this study, we analyze a model that determines the optimal selling price and order quantity from the perspective of the distributor, assuming that the supplier allows a deferred payment period dependent on the transaction volume. We assume that the final customer's annual demand exhibits an exponential decrease with respect to the distributor's selling price, using a constant price elasticity function. To analyze the problem, we assume that the product deteriorates at a constant rate over time and aim to establish an inventory model for the intermediate distributor. We also want to analyze the impact of deterioration on the inventory policies of the intermediate distributor.

• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.49-55
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• 2018

Purpose - This paper examines the effect of related party transactions on crash firm-specific stock price crash risk. Ownership of a typical Korean conglomerate is concentrated in a single family. In those entities, management and board positions are often filled by family members. Therefore, a dominant shareholder can benefit from related party transactions. In Korea, firms have to report related party transactions in financial statement footnotes. However, those are not disclosed in detail. The more related party transactions are the greater information risk. Thus, companies with related party transactions are likely to experience stock price crashes. Research design, data, and methodology - 2,598 firm-year observations are used for the main analysis. Those samples are from TS2000 database from 2009 to 2013, and the database covers KOSPI-listed firms in Korea. The proxy for related party transactions (RTP) is calculated by dividing total transactions to the related-party by total sales. A dummy variable is used as a dependent variable (CRASH) in the regression model. Logistic regression is used to explain the relationship between related party transactions and crash risk. Then, the sample was separated into two groups; tunneling firms and propping firms. The relation between related party transactions and crash risk variances with features of the transaction were investigated. Results - Using a sample of KOSPI-listed firms in TS2000 database for the period of 2009-2013, I find that stock price crash risk increases as the trade volume of related-party transactions increases. Specifically, I find that the coefficient of RPT is significantly positive, supporting the prediction. In addition, this relationship is strong and robust in tunneling firms. Conclusions - The results report that firms with related party transactions are more likely to experience stock price crashes. The results mean that related party transactions increase the possibility of future stock price crashes by enlarging information asymmetry between controlling shareholders and minority shareholders. In case of tunneling, it could be seen that related party transactions are positively associated with stock crash risk. The result implies that the characteristic of the transaction influences crash risk. This study is related to a literature that investigates the effect of related party transactions on the stock market.

• International Commerce and Information Review
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• v.16 no.3
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• pp.465-486
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• 2014

This paper intends to analyse some legal issues on US-Orange Juice Case. Brazil's WTO challenge is to the methods undertaken by US in calculating antidumping duties in administrative reviews of Brazilian Orange Juice. Panel resulted that conforms with earlier Appellate Body decision outlawing the use of 'weighted average to transaction zeroing. This paper note that panel's stance was driven from 'stability and predictability' within the DSB system. There was a de facto form of stare decisis. However, Panel in US-Orange Juice recognized that Appellate Body decision is wrong about finding zeroing to be violation of the fair comparison requirement of the Article 2.4 of the WTO Anti-Dumping agreement. Zeroing dispute of WTO Anti-Dumping Agreement will be continued that because this matter. Fortunately, the American government announced it would be stop zeroing system of administrative reviews. As result, Carefully, We anticipate that US-Orange Juice's decision is the end of zeroing method on the WTO Anti-Dumping Agreement.