Overview

Operating across borders exposes companies to multiple legal regimes and ethical norms. This topic introduces international sales law, anti‑bribery statutes, trade compliance, and the growing importance of corporate social responsibility (CSR) and environmental, social, and governance (ESG) reporting.

Key Concepts

• CISG: U.N. Convention on Contracts for the International Sale of Goods—default commercial code for cross‑border sales unless opted out.
• INCOTERMS® 2020: Standard trade terms (FOB, CIF, DDP) allocating shipping cost & risk.
• FCPA & UK Bribery Act: Extra‑territorial anti‑corruption laws; prohibit bribing foreign officials and require accounting controls.
• Export Controls: EAR, ITAR, and economic sanctions (OFAC SDN lists) restrict transfer of sensitive goods and technology.
• Dispute Resolution: Arbitration via ICC or UNCITRAL is preferred over local courts; choice‑of‑law & forum clauses critical.
• CSR & ESG: Voluntary and mandated disclosures (EU CSRD) on human rights, labor, environment, and anti‑corruption programs.
• Cultural Ethics: Navigating gift‑giving, facilitation payments, and stakeholder expectations across jurisdictions.

Step-by-Step Example

Scenario: U.S. drone maker AeroTech signs a $5 million contract with a German distributor. Which law governs and how should compliance be handled?

Step 1: Include clause opting in or out of CISG; if silent, CISG applies by default to U.S.–German sale.

Step 2: Choose INCOTERM DAP Frankfurt—AeroTech bears shipping risk until arrival.

Step 3: Screen distributor against OFAC and EU sanctions lists; obtain export‑license classification (ECCN) for drones.

Step 4: Add FCPA representation: distributor will not offer bribes; breach triggers termination.

Final Answer: By tailoring choice‑of‑law, trade terms, export compliance, and anti‑corruption covenants, AeroTech reduces legal risk while securing international revenue.

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