• Journal of Distribution Science
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• v.21 no.9
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• pp.115-121
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• 2023

Purpose: This study aimed to deal with disputes between the seller and the buyer in connection with the Letter of Credit (LC) in a sales contract. The Contracts for the International Sale of Goods (CISG) provides the rules on the fundamental breaches which can lead to termination of the sales contract but the CISG is not enough to govern issues arising from the LC disputes when the sales contract is not clear about the payment terms. This paper tried to find some solutions to the disputes by considering international rules, such as the Principles of European Contract Law (PECL). Research design, data and methodology: The methodology applied in this study was an analysis of some court decisions and extended literature review. Results: The study revealed that in contracts for the sale of international goods, the buyer was obliged to open an LC as manner of payment. If the buyer failed to open an LC or amend the terms of the LC, the seller could avoid the contract because this could deprive the seller's expected interest. Conclusions: Few studies in Korea have been comprehensively analyzed in terms of the obligations of regarding the LC with respect to the CISG in court cases. This study suggests safeguarding the buyer and seller when the LC is considered absolute or conditional.

• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.50
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• pp.3-25
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• 2011

The purpose of this paper is to examine the use of LD Clause against the seller's breach of contract in connection with delivering the goods in the international sales contract, and international guarantee system using standby L/C or demand guarantee. For this purpose, the author, first, considered the outline of the buyer's remedies in cases that the seller had not performed his obligations in contract and the difficulties in the buyer's remedies. As alternatives for overcoming the difficulties, this author recommended the LD Clauses (Liquidated Damage Clauses) based on ICC Model International Sales Contract, and explained each Model Clause. To enhance the feasibility of LD Clause, this author suggested the guarantee system, like the standby L/C or demand guarantee. But these guarantee systems have several limitations in practical use. Thus, these guarantee systems would greatly contribute to Korean exportation in the future. The reason is that the Korean export structure would be more complex and the period of sales contract would be longer and longer, which result to in long-terms supply contracts. These changes would require the guarantee much urgently.

• Journal of Korea Trade
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• v.27 no.3
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• pp.43-64
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• 2023

Purpose - This paper studies whether CISG can be a suitable governing law for pure service contracts. When CISG was first drafted, there was little disagreement on the fact that contracts for the sale of goods and those for the provision of services were two different types of contract. Based on this understanding, CISG explicitly provides that the Convention will apply to contracts where the preponderant part of the contractual obligation is on the sale of goods, not services. However, as more sales transactions have come to include more elements of services, mainly due to the advancement of the IoT industry, the distinction between goods and services became more blurred. Based on the observation of recent changes, some scholars even argue that such a change supports the applicability and suitability of CISG to even pure service contracts. The purpose of this paper is to critically analyze and evaluate their argument. Design/methodology - This paper focuses on two separate but related issues: CISG's 'applicability' and 'suitability' to service contracts. For the first issue, this paper will examine the rules of interpretation of international treaties under the Vienna Convention on the Law of Treaties of 1969, and will apply its rules to find the proper answer. For the second issue, this paper will perform logical and empirical analyses on the reasoning employed by scholars claiming the suitability of CISG to service contracts. Findings - This paper concludes that CISG does not, and should not, apply to pure service contracts. The argument that CISG applies to pure service contracts directly contravenes Article 3(2) of the Convention, which expressly states that it does not apply to a contract wherein the preponderant part of its obligation is about services rather than sales. Similarly, CISG is not a suitable governing law for pure service contracts because it aims provide rules specifically tailored to the needs of transactions of sales of goods, not services. Servitization of sales of goods transaction does not change this conclusion. Originality/value - This paper presents different views from those offered by some eminent scholars on the issue of applicability and suitability of CISG to service contracts. By doing so, it is hoped that the confusion caused in discussions so far are clarified. Hopefully, this paper can also provide practical guidance to practitioners engaged in the fields of international sales, services, and IoT industries.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.53
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• pp.31-48
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• 2012

If see CISG's passing of risk and altered regulations first, when sales contract accompanies transport of goods and seller does not have duty to deliver goods at particular place, when deliver to the first carter to send to purchaser according to sales contract risk passes to purchaser, and when there is duty that seller must deliver goods to carter at specification place, when goods are delivered to carter at same place, risk does not pass to purchaser. Second, risk about transporting goods passes to purchaser at signing a contract. But, when there is special assessment, risk passes to purchaser when goods are delivered to carter who publish document that embody contract of carriage. Nevertheless, it is loss if seller did not notify this truth to occasion purchaser who could knew loss or damage of goods or know justly at sales contract conclusion defamation danger seller of be burdensome. Third, seller has responsibility about damage or loss as long as hide in own artificiality or forbearance after risk passes to purchaser. Regulation about risk in Incoterms 2010 was separated into 11 condition, and move time of risk differs in angle condition. It is appeared that the substance handles relatively comprehensively because compare in Incoterms 2010 although it is because it becomes if it examines regulation about deliver and passing of risk of goods setting in CISG relatively concise. Also, segments that can become posibility of analysis controversy exist.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.241-265
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• 2003

The purpose of this paper is to examine the customs clearance impediment and trade parties breaches of international sales contract by the impediment. Customs clearance impediment arises when (a)clearance is not permitted, (b) importation goods are confiscated, (c)clearance delay without expectation, and (d) additional excessive trade cost caused in the process of clearance. This kind of clearance impediment may cause the breach of international sales contract. And it depends on its contents of contract and causal sequence i.e. cause and effect respectively in determining who is liable for it. If one party exemptions by Article 79 CISG, next three elements must be proved. (a)The failure was due to an impediment beyond his control; (b)the impediment was reasonably unforeseeable at the time of the conclusion of the contract, and (c)the impediment was reasonably impossible to overcome. But the customs clearance impediment is not easy to prove these three elements, the party who is responsible the customs clearance may not be exemptions by Article 79 CISG. And, according to review, it is concluded that the buyer, rather than seller, is liable for the damage which is caused in the process of clearance. It is also confirmed that the seller is sometimes liable for depending on clauses of contracts i.e. quality conditions.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.63-82
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• 2003

The time of examination of buyer in international sales contract is very significant, because the time is related with the period of claim in buyer's aspect. From the legal point of view, the time of delivery, the time of examination and the time of quality decision should be in accord. But the buyer, whose main place of business is located in importing country, wants to examine the goods in his own country. Therefore in CIF or FOB Contract, the place of delivery and the place of examination are divided. Thus the CISG, the Common Law System and the Civil Law System including Korean Law stipulate the buyer's examination at the destination if the sales contract involves carriage of the goods. This author, from the buyer's perspective, would like to make the following suggestions in regard to the time of examination when the sales contract is made. First, the time of examination and the time of quality decision should be in accord, even though the time of delivery is different. Second, the buyer should clearly indicate the time, the place, the inspector, the particulars and the burden of proof in regard to examination when contracting. Third, the buyer should also clearly indicate the period of notice for the lack of conformity in Claim Clause of sales contract, which should be counted from the time of examination. Fourth, the buyer should remember that he many lose the right to rely on the lack of conformity of the goods if he does not give the seller notice thereof within the stipulated time or reasonable time. Finally, if the buyer wants, to examine the goods at the place of shipment, it is desirable for the buyer to designate internationally recognized inspection organization like SGS.

• The Journal of Information Systems
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• v.30 no.2
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• pp.105-126
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• 2021

Purpose The purpose of this study is to implement a optimal machine learning model about the cancellation prediction performance in car sales business. It is to apply the data set of accumulated contract, cancellation, and sales information in sales support system(SFA) which is commonly used for sales, customers and inventory management by imported car dealers, to several machine learning models and predict performance of cancellation. Design/methodology/approach This study extracts 29,073 contracts, cancellations, and sales data from 2015 to 2020 accumulated in the sales support system(SFA) for imported car dealers and uses the analysis program Python Jupiter notebook in order to perform data pre-processing, verification, and modeling that is applying and learning to Machine learning model after then the final result was predicted using new data. Findings This study confirmed that cancellation prediction is possible by applying car purchase contract information to machine learning models. It proved the possibility of developing and utilizing a generalized predictive model by using data of imported car sales system with machine learning technology. It can reduce and prevent the sales failure as caring the potential lost customer intensively and it lead to increase sales revenue by predicting the cancellation possibility of individual customers.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.37
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• pp.3-33
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• 2008

This study primarily concerns the seller's duty to deliver the goods in conformity with the contract under the United Nations Convention on International Sale of Goods(1980) in comparison with the Draft Principles of European Sales Law. It describes and analyzes the provisions of the CISG as to the seller's duty, focusing on main controversial issues among scholars in their application. It also attempts to compare the rules of the CISG with those of the Draft PESL and to evaluate them in light of the discipline of comparative law. This is for the purpose of facilitating the systematic development and reform of one jurisdiction by any solution from the other jurisdiction found by the comparative study. In addition, this study provides legal and practical advice to the contracting parties when they intends to insert the CISG or the Draft PESL in their contract as a governing law. The comparative study particularly focuses on the following aspects; first, requirements for conformity with the contract which deals with the concept of conformity with the contract, contractual requirements agreed between contractual parties, and implied requirements otherwise not agreed between contractual parties, second, the time when the goods must be in conformity with the contract, third, exclusions of the seller's duty to deliver the goods in conformity with the contract.

• Journal of Arbitration Studies
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• v.14 no.1
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• pp.245-272
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• 2004

This study is focused on the cases that Korean hotels stepped into international airports, public facilities, and successfully solved the contract related disputes by using arbitration in accordance with arbitration law. This case study on arbitration derives the hotel management strategy points as follow: 1. It must be a good chance for a famed hotel to step into international airports that have big publication effect. The feasibility study focused on marketing feasibility rather than finance feasibility may, however, not be good. 2. Written contract is required in entering into a contract with government organizations. However, oral contract still exists. 3. If the contract is made to always pay the higher amount between annual minimal guarantee and sales rate in expenses of store using charge, such contract shall cause very hard sales environment from the initial stage of the contract. 4. The airports have made optional contracts for national service. Such optional contracts are, however, not free from public criticism. 5. This case study is the first case study on arbitration applied to hotels. This study shall be, therefore, frequently referred to in setting a management strategy of hotels that want to run restaurants in another facility outside themselves.