Foundations of Business Law
FHNW BSc Business Administration / International Management (2nd Semester)
FHNW BSc Business Administration / International Management (2nd Semester)
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In a general partnership according to Swiss law, the partners have joint and several liability.
Leasing is a form of quasi-security. Examples for real security are mortgage or pledge of movables.
EU law always supercedes national law, but does not replace it.
EU law always replaces the national laws of the EU member states.
Copyright law protects intellectual creations in the field of art and literature.
A Documentary Collection can be beneficial to manage the cash flow, but unlike a letter of credit, the seller is not given a credit. The bank is merely collecting the payment on behalf of the seller.
EXW is the Incoterm the most favourable for the buyer, DDP is the Incoterm the most favourable for the seller.
A claim under the Swiss Product Liability Act covers damage to a person or private property caused by a defective product, as well as the refund of the purchase price of the defective product.
Despite the lack of objective criteria for quality and despite the special trust between an artist and the person who commissiones a piece of art, such contract are classified as contracts for work and services.
Without a specific clause in a sales contract, payment is due immediately after delivery of the good.
In Europe, the UK has the Common Law System - as the basic system recreated by most of today's common law countries. All countries in CONTINENTAL Europe (mainland Europe) have the civil law system.
Customer A in Germany buys two blankets from Der Bettenkönig. After a few days, A notices that the seams have been processed incorrectly, and the interior material is starting to come out. Based on the sales contract, does A have contractual remedies against Der Bettenkönig, or against Alpine Luxury, or against both of them? Explain why. (There is no need to explain what legal remedies A might have, or to assess the likelihood of success of this claim.)
Against "Der Bettenkönig", as "A" has entered into a contract with "Der Bettenkönig" (sales contract).
Customer B in Germany buys an Alpine Luxury blanket from Der Bettenkönig – and subsequently suffers an allergic reaction due to undisclosed materials used in the blanket. B knows that Der Bettenkönig has recently experienced financial problems. B is therefore claiming reimbursement from Alpine Luxury for the costs of her medical treatment. She bases her claim on product liability law, arguing that the blanket is defective because allergenic materials were not declared.
Discuss whether the blanket is defective under the Swiss Product Liability Law.
For a claim based on product liability law, the product must be defective. A defect is:
· deficient design, or
· deficient construction, or
· improper instructions for the user
In this case, you can argue with "improper instructions". The average buyer of these blankets can expect information about allergenic materials. Therefore, the product is defective under product liability law.
Thinkeneer LLC. Although Dupont was the one negotiating and signing the contract, he was acting as an agent on behalf of Thinkeneer LLC.
Sara and Holger are granted a construction permit for their detached house.
Which area of law is it?
The year after Sara and Holger's wedding, the tax authorities issue a joint tax ruling for Sara and Holger.
Which area of law is it?
The city's tax authorities commission a local cleaning company to clean their offices on a weekly basis.
Which area of law is it?
Sara and Holger get married shortly after moving into their new house.
Which area of law is it?
Kevin is the new owner of a restaurant. He applies for an operating license with the cantonal Office for Labour and Economic Affairs.
Which area of law is it?
In a general partnership according to Swiss law, the partners have joint and several liability.
For a business in Switzerland with significant fundraising requirements, the legal form of a Corporation is more appropriate than a General Partnership.
Hans and John are touring Europe as backpackers. They meet by chance in Geneva, Switzerland, and realize that they both are heading for Marseille, France, with a few stops along the way to explore. They decide to buy bicycles for their journey. As Hans is better at negotiating, they decide that Hans will negotiate with the seller of the bicycles. They agree that they will split the cost of the trip equally. John is a trained mechanic, so he agrees to be responsible for any repairs that need to be done during their journey.
Do Hans and John form a business association (Swiss law)? Explain your answer in two to three sentences.
They form an ordinary association (= simple partnership). It is an orally concluded contractual relationship. Hans and John agree to pursue a common goal for a limited - even very short-term - period. Both contribute according to their skills and abilities (Hans: bargaining, John: repair). They share the costs.
Remarks:
a) One legal consequence of an ordinary association is the joint and several liability for obligations (note: no liability for tort, no criminal liability for activities of others).
b) Another form of partnership can be ruled out, as the contractual relationship is clearly short-term, and the legal requirements for another form are not met (e.g. for a general partnership, a registration in the commercial register is mandatory).
For the legal form of a corporation according to Swiss law, what corporate body is never required?
What is a "pass-through entity"?
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Thinkeneer LLC. Although Dupont was the one negotiating and signing the contract, he was acting as an agent on behalf of Thinkeneer LLC.