W1-2-60-1-6
JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
UNIVERSITY EXAMINATIONS 2013/2014
FOURTH YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF LAWS
LSC 2313 : INTERNATIONAL TRADE AND INVESTMENT LAW
DATE: DECEMBER 2013 TIME: 2 HOURS
INSTRUCTIONS:
QUESTION ONE
(a) A seller based in Kenya sells to a buyer based in Japan 2000 tons of beans CIF Tokyo Incoterms 2010 US$ 10 000 cash against a clean shipped bill of lading , and other CIF documents. The seller ships all 2000 tons on the agreed date. The cargo of beans become wet during an exceptionally heavy storm which occurs before the ship sails from Mombasa. The master of the ship, before issuing the bill of lading, alters it with a marginal note “Cargo wet by rain after loading”. A week after the ship sails, the seller tenders to the Buyer the bill of lading. The buyer would like to reject it on the grounds that it is not clean. When the cargo of beans arrives at the port of Tokyo, it is found to be completely unfit for human consumption. Advice the buyer. [20 marks]
(b) “ A bill of lading must meet certain strict criteria or risk being rejected for non-conformity, Anonymous. Discuss this statement, citing relevant authorities. [10 marks]
QUESTION TWO
(a) Where the parties to an international trade contract have not included on express choice of law clause, how may any dispute as to the applicable law to the contract be resolved? [10 marks]
(b) Discuss, with the aid of case law, the buyers and the seller’s remedies in case of breach of CIF contract. [10 marks]
QUESTION THREE
(a) Advise a Kenyan Company on how to enforce a judgment obtained in Kenya against a Japanese company. [10 marks]
(b) Identify and discuss sources of international trade law. [10 marks]
QUESTION FOUR
The law relating to letters of credit is founded on two principles –the autonomy principle and the
doctrine of strict compliance. Explain these principles and indicate their utility in international trade
law. [20 marks]
QUESTION FIVE
(a) Differentiate between FOB contracts and CIF contracts and identify the duties of the buyer and seller under each type of contract. [10 marks]
(b) Explain the role of the bill of lading in international sale of goods transaction. [10 marks]
