The United Nations Convention on Contracts for the International Sale

Question

The United Nations Convention on Contracts for the International Sale of Goods (CISG) can help countries throughout the world have a more uniform way of navigating the challenging waters of international law surrounding trade. It is not uncommon for two countries to have adopted different laws on international trade that conflict with each other. This becomes a serious problem when trade disputes arise. To help make this concept more tangible, consider the following hypothetical.

Suppose China ships three million dollars' worth of electronics to Uganda using standard bulk shipping transportation methods via a commonly traveled sea route. However, the packaging isn't secured in a manner sufficient to withstand unforeseen weather conditions. As a result, the goods become damaged in transit and are no longer fit for resale. Given that two countries are involved in this transaction–China and Uganda–the question arises as to which country’s trade laws will apply to resolve the matter at hand.

In this scenario, it is fortunate that both China and Uganda are parties to the CISG, which provide for a uniform set of laws governing trade. Such laws cover which party would be responsible for the damaged goods in this scenario. As a result, there will be no dispute as to whether China’s or Uganda's trade laws apply. Given that both countries are parties to the CISG, the laws set forth by the CISG would be applicable.

However, not all countries are parties to the CISG. One example is Rwanda. Even though Rwanda is not a party to the CISG, the fact of the matter is that CISG laws can still apply to it. The CISG applies to trade between countries so long as one of those countries is a party to the CISG (unless the parties expressly specify that the CISG will not apply to their specific trade arrangement). Several of Rwanda's main trade partners, such as the United States, China, Belgium, and Uganda, are parties to the CISG, so the laws of the treaty will apply in those trade agreements. Meanwhile, there is a different story when it comes to Rwanda's trade agreements with Kenya, Swaziland, Tanzania, and Thailand, which are not parties to the CISG. Due to these countries’ lack of membership in the CISG, if a problem ever arose in a trade agreement between Rwanda and one those countries, it would be unclear as to which country’s laws would apply.

There has been heated discussion as to whether Rwanda should sign the CISG. The United Nations Development Program takes the stance that it would behoove Rwanda to join. Whether or not Rwanda decides to become a member, the CISG will still apply to a large portion of its trade agreements, as about 100 countries are in fact CISG members, with a strong portion of those members also being trade partners with Rwanda. On the flip side, some Rwandan politicians believe that valuable autonomy would be lost if Rwanda assented to the CISG. However, given the potential benefits that Rwanda stands to gain from the CISG, these fears do not merit forgoing such a valuable opportunity.    1 
 1. The author would most likely agree with which of these statements?

A. It is imperative that Rwanda join the CISG in order to avoid impending trade disputes that could prove to be disastrous. 
B. The CISG has a narrow window of applicability. 
C. It would be to Rwanda's benefit to join the CISG. 
D. Although joining the CISG has benefits, Rwanda ultimately should not join the CISG. 
E. There are positive and negative aspects that Rwanda should weigh and balance when deciding whether to join the CISG.

2 
 2. Which of the following, if true, would be most likely to weaken the author’s argument that Rwanda should join the CISG?

A. Kenya, Swaziland, Tanzania and Thailand have since become CISG members.
B. The article was written several years ago, and in the elapsed time, many member countries to the CISG have withdrawn their membership.
C. The United States has a neutral stance as to whether Rwanda should join the CISG. 
D. The majority of Rwanda’s trade is conducted with Kenya, Swaziland, Tanzania and Thailand.
E. Most Rwanda politicians encourage Rwanda to join the CISG.

3 
 3. Which of the following, if true, best supports the author’s contention that Rwanda should become a member of the CISG?

A. Even if a country is a CISG member, commercial trade disputes are just as likely to occur. 
B. Becoming a CISG member can sometimes delay the processing of trade agreements because additional protocols are set in place for members to follow. 
C. Disputes over which country's laws to apply in commercial trade situations can chill future trade arrangements with other countries, even those which belong to the CISG. 
D. Participation fees for becoming a CISG member can hinder certain countries from joining. 
E. Status as a CISG member can deter non-CISG countries from engaging in trade arrangements.

4 
 4. The primary purpose of the second paragraph is to __________.

A. indirectly offer a counter-argument to the author's thesis
B. provide an example that makes an abstract concept easier to understand
C. suggest that China and Uganda should join the CISG
D. directly support the author's thesis
E. demonstrate the deleterious effects that can result from a trade dispute

5 
 5. Which of the following is the main purpose of the passage?

A. To explain how the landscape of international trade has evolved in recent years
B. To weigh and balance the reasons why Rwanda should join the CISG versus why Rwanda should not join the CISG
C. To explain why Rwanda should become a member of the CISG
D. To provide a broad overview of Rwanda’s trading practices
E. To argue that countries should always heed the recommendations of the United Nations Development Program

RC Butler 2023  -  Practice Two RC Passages Everyday.   
Passage # 165 Date: 26-May-2023
 This question is part of RC Butler 2023 .  Click here for Details

Sandesh013 · Answer

Sajjad1994 
Hi, how much time should it take to answer a question? on an average ?
also how should I proceed with the question, what are the steps ?

IshaBorkar · Answer

Can someone please explain why is Option B correct for Question 2?

Sajjad1994 · Answer

Explanation

2. Which of the following, if true, would be most likely to weaken the author’s argument that Rwanda should join the CISG?

Explanation

The author argues that Rwanda should join the United Nations Convention on Contracts for the International Sale of Goods (CISG) to benefit from a more uniform set of laws governing international trade. To weaken this argument, we need to find information that challenges the benefits or relevance of joining the CISG for Rwanda.

A.  This strengthens the argument as it implies that more of Rwanda's trade partners have joined the CISG, making it more advantageous for Rwanda to join.

B.  This weakens the argument as it suggests that the membership landscape has changed, and joining the CISG may not be as beneficial if many countries have withdrawn.

C.  This does not provide information about the benefits or drawbacks for Rwanda, so it neither strengthens nor weakens the argument.

D.  This potentially weakens the argument if joining the CISG is less advantageous for Rwanda's major trading partners. It suggests that the majority of Rwanda's trade might not be directly impacted by CISG membership.

E.  This strengthens the argument as it indicates that there is political support for joining the CISG, which counters the notion that valuable autonomy would be lost.

Answer: B

Sajjad1994 · Answer

2.5 to 3 minutes to read a short passage and 4 minutes to read a long passage and one minute at average for each question.

FrozenDragon · Answer

can someone please explain 2nd and 3rd question

Sajjad1994 · Answer

Hello  Gmat760sanskar

An explanation of question #2 is posted  here

Explanation

3. Which of the following, if true, best supports the author’s contention that Rwanda should become a member of the CISG?

Explanation

A.  This option doesn't support the author's contention. It suggests that being a CISG member does not necessarily reduce the likelihood of commercial trade disputes, which does not address the specific benefits the author argues for Rwanda joining the CISG.

B.  This option presents a potential drawback of becoming a CISG member. It suggests that there might be delays due to additional protocols. However, the author is focused on the potential benefits and the need for uniformity in trade laws, so this option doesn't align with the author's argument.

C.  This option supports the author's contention by emphasizing the negative consequences of disputes over applicable trade laws. It underscores the idea that such disputes can negatively impact future trade arrangements, even if both countries are CISG members, highlighting the need for a uniform set of laws.

D.  This option introduces a potential obstacle to joining the CISG, but it doesn't directly relate to the author's argument about the benefits of having uniform trade laws and avoiding disputes.

E.  This option suggests a potential drawback in that non-CISG countries might be deterred from engaging in trade with a CISG member. However, the author is focused on the benefits for Rwanda, and this option does not address the potential advantages the author argues for joining the CISG.

Answer: C

Arpitamitra · Answer

Hi, 
Request if someone please help me with the answer of Question 5.

Sajjad1994 · Answer

Explanation

5. Which of the following is the main purpose of the passage?

Explanation

The passage does discuss the advantages of Rwanda joining the CISG. It mentions the potential benefits such as the uniform set of laws governing trade, the resolution of disputes, and the fact that many of Rwanda's trade partners are already members of the CISG. It also briefly touches on the stance of the United Nations Development Program, which recommends Rwanda's membership. Therefore, the passage does provide explanations for why Rwanda should become a member of the CISG.

Now, let's discuss why the other options are incorrect:

A.  While the passage does touch upon international trade and the challenges countries face with conflicting trade laws, it doesn't primarily focus on the evolution of the international trade landscape. The main emphasis is on the implications of trade disputes and the potential benefits of joining the CISG.

B.  While the passage does present both sides of the argument, it doesn't actively weigh and balance the reasons for and against joining the CISG. It provides information on the potential benefits and concerns but doesn't explicitly compare or evaluate them.

D.  The passage doesn't provide a broad overview of Rwanda's trading practices. Instead, it specifically focuses on the implications of trade disputes and the considerations regarding joining the CISG.

E.  The passage mentions the recommendation of the United Nations Development Program but does not argue that countries should always heed such recommendations. It presents this stance as part of the broader discussion on whether Rwanda should join the CISG.

Answer: C

mjssgmat · Answer

In question 3, we have to support author's contention that Rewada should CSIG, assuming the options are true. 
Then why not option E. If option E is true, this will for sure prevent Rewada from being part of many trades. Hence I believe this is a very strong option.

I don't think we should be looking for options that are similar to what author is arguing in the passage, rather we should see that if the given option is true will that support the idea the Rewada should join.

Let me know if Im wrong somewhere. Would love feed back on my thought process.

The United Nations Convention on Contracts for the International Sale

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The United Nations Convention on Contracts for the International Sale

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