Foundations of Business Law

Product liability is a form of strict liability (Swiss law).

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.

What is the basic difference between fault-based and strict liability? Answer in complete sentences.

Recklessness is a form of negligence.

The tortfeasor acts with negligence, if it was neither planned nor willfully. If the tortfeasor performs the act willfully, we talk about intention.

In fault-based liability, the injured party must prove the damage done, the unlawful act, the causation, and the fault of the tortfeasor.

The vicarious liability of the employer is a form of strict liability. 

A Documentary Collection puts the seller in a better position than a Letter of Credit.

Leasing is a form of real security.

An open account transaction is a sales transaction where the goods are shipped and delivered before the payment is due.

In a documentary collection, the seller...

The bank having issued a bank guarantee must pay the seller even if the buyer proves that the goods delivered are defective.

In international business, the security instrument of a surety is more often used than a guarantee.

A watchmaker repairs a watch. If the customer does not pay the repairs, can the watchmaker sell the watch (Swiss Law)?

The pledge is very practical for long-term security as the owner may remain in possession of the goods pledged.

A factor buys the accounts receivable from a company, and sometimes takes over services such as bookkeeping or invoicing. The credit risk always remains with the seller of the accounts receivable.

GMAC, a General Motors company, has gone bankrupt. It had provided financial leasing arrangements to the buyers of General Motors cars and had always paid in full to General Motors the sales prices of the cars. The leased cars...

States adhere to Public International Law out of self-interest, not out of fear for leagl consequences. 

The concept of contributory negligence in tort law states that if the injured party has been negligent to a degree that contributed to the harm they suffered, the liability of the tortfeasor may be reduced.

Company A licenses a patented technology to company B for a fee. When negotiating the license fee, company A was not aware of how critical this technology is for company B (and company B hid this aspect carefully from company A). Because this lack of information was material, it constitutes a material error and no contract was formed.

Every executive of a company listed in the organisational chart has the capacity to act on behalf of his or her organisational unit.

If a software company needs access to the premises of the customer to successfully perform (i.e. installing a software according to the contract with the customer), the software company could enforce the obligation of the customer to grant access.

In a general partnership according to Swiss law, the partners have joint and several liability.

An arbitration clause usually provides for the appointment of one or more arbitrators but never for the application of a specific set of arbitration rules.

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. 

Marriage laws prohibiting polygamy (= marriage to more than one person) contain no ethical aspects.

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. 

 What kind of contract have Alpine Luxury and Der Bettenkönig entered into (name only)?

What kind of contract is concluded with each individual Purchase Order placed by Der Bettenkönig? (name only)

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.)

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.

What type of contract exists between Dupont and Thinkeneer LLC (name only)?