law

Commercial

OFLAW
THESTUDY
E¡6

Le&ü*¡tT
1 commerciallaw is the bodyof law that governstrade and commerce.Discuss
thesequestionsin smallgrouPs.
lWhatbodiesoflawgoverncommerceinyourjurisdiction?
2 Howwoulda contractd¡sputebetweentwo companiesfrom different
jurisdictionsbe settled?
3 Whichinternational bodiesdo you knowthat set guidelinesfor commercial
transactions?

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2 Readthe text belowand decidewhetherthese statementsare true or false
!. Commercialtawis a generalterm for a numberof diverseareasof the law
whichregulatetrade and commerce.
2 Contentiouswork includesthe draftingof contractsand advisingclients'
3 The UniformCommercial Codeappliesto commercial transactions in all of
the membernationsof the European Union'
4 TheWorldTradeOrganisation checksto see if countriesfollowthe trade
agreementsthey havesigned'

Commerciallaw dealswith issuesof both privatelaw and public law' lt

developedas a distinct body of iurisptudencewith the beginningof large-
scaletrade,and manyof its rules are derivedfrom the practicesof traders'
Specificlaw has developedin a numberof commercialfields,including
agency,banking,bankruptcy,carria$eofgoods,commercia|dispute
resolution,companylaw,competition law, contract,debtor and creditor, sale
of goods and services,intellectual property, landlordand tenant, mercantile
agency,mortgages,negot¡ableinstruments,securedtransactions,real-
property and tax law.
The work of a commerciallawyermay involveany aspectof the law as it
relatesto a firm's businessclients,and the role of the lawyeris to facilitate
businessclients'commercialtransactions.lt is essentialfor a commercial
lawyerto have not only a good knowledgeof a lot of substantivelaw, but also
a thoroughunderstanding of both contemporary businesspracticesand the
particularbusinessneedsof each client.
A commerciallawyermay be askedto advisea clienton mattersrelatingto
both non-contentiousand contentiouswork. Non-contentious work largely
involvesadvisingclientson the draftingof contracts,whereascontentious
work commonlyinvolvesthe consequences of breachof contract'
Manyjurisdictionshaveadoptedcivil codesthat containcomprehensive
statementsof their commerciallaw,e.g. the UniformCommercialCode(UCC)'
whichhas beengenerallyadoptedthroughoutthe USA.Withinthe European
Union,the EuropeanParliamentand the legislaturesof membernationsare
workingto unifl their variouscommercialcodes'
A substantialamount of commerciallaw is governedby internationaltreaties
and conventions. The UnitedNationsCommissionon International Trade
Law(UNCITRAL) trade
regulatesinternational in cooperationwith the World
Tradeorganisation(wTo).The wTo is responsiblefor negotiatingand
implementing newtrade agreements,and is in chargeof policingmember
countries'adherenceto these agreements, whichare signedby the majority
of the world'stradingnationsand ratifiedby their legislatures(for example,
Parliamentin the UK or Congressin the USA).

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3 Lookat the areasof activityin commerciallaw mentionedin the first paragraph
of the text aboveand answerthese questions.Use the glossaryif necessary'
1 Whichfield dealswith the legalrightsassociatedwith productsof the mind,
such as patents,copyri$htsand trademarks?
2 Whichfield involvesthe lawsand regulat¡ons governingmarketbehaviour,
particularly
agreementsand practices
that free enterprise?
restrict
3 Whichinstitutiondealswith the supplyof creditinformationaboutbusiness
organisations to other businessesand financialinstitutions?
4 Whichfield concernedwith the legalrelationships
is betweenthe shipper(or
owner)of goods,the carrier,and the receiver/consignee of goods?
5 Whichfield focuseson the laws regulatingmoneypaid to the governmentin
connectionwith commercialtransactions?
4 Choosethe correctwordor phraseto completethese definitions.
1 'Agency'is the term for the relationshipof a personwho acts in additionto /
on behalfof / on accountof anotherperson,knownas the principal.
2 Bankruptcyis when someonecannotpaywhat they owe/ own/ won,and all
their propertyis surrendered to a court-appo¡ntedpersonwho liquidatesthe
propertyto pay the claims of creditors/ owners/ debtors'
3 A securedtransactionis a loan or credit translation/ transaction/
terminationin which the lender/ Ioaner/ debtoracquiresa securityinterest
in certainpropertyownedby the borrowerand has the rightto repossessthe
propertyif the borrowercannot pay.
4 Negotiableinstrumentsare documentswhichrepresenta rightof charge/
payment/ creditfora specifiedsum of moneyon demandor at a definedtime.

law
Unitó Commercial
 8 Fo

Lüstem&mgx:Pr*f&{emf&tsrT}mereiat[awyen
of,[aw,commercia[
L

tawitsetfencompasses manydistinctfietds
Justas commercia[
lr
lawyersoftendealwithdifferentareasofcommerciatactivityinthecourseoftheir 2
c a r e e r s . Y o u a r e g o i n g t o n . u r t h e p o d c a s t o f athe
n i website
n t e r v i eof
wthe
w i tatumni
hMichaelGrant'an
on
associate at a commercltiu* firm'whichappears 3
association of an Austratian university'
questions'
5 (ie.r Listenano answerthese
to university? 4
1 Whyhas he oecidedto return
students regardingcareerchoices?
2 What does he adviselaw
6(ie'rListenagainandticktheworkhedidbeforejoiningRavenstone,Altman
and Ofner,LLP'
1 PreParing noticesof dismissal
tr
positionsat his firm T
i int"rui"*ing juniorlawyersfor
technicaldocuments
n
3 AnalYsing
4 SubmittingPatentaPPlications
tr
l ft
5 WritingPatentdrafts
6 Draftingmaritimelegislation
T rc
7 Resolving charterpartydisputes
T
f t
8 Handling cargoclaims
9 LitigatingshiPcollisions
T

axs*:&*werh$qef;"Bet&ons
Lartgwm*e
ln expressedbYthe verb' We
:
fl";T:[:1ifi E*?]; Íili;'; ;;;' ot''
0""'o' u'ln"'' i'r'
*r.'
:ilil:: an actionis"'carried out('n*íi' Adverbscan also be
describehow ""'"1'"¡
particutartyíntlresting'
used to qualifyadjectives(e'g'

TaUnderlinetheadverbsinthesentencesbelowfromListeningl-andthen
have(a-c)'
decidewhichfunctionthe adverbs
a describingtime of action
b describingmannerof action
an adjective
c qualifYing
of e-Lawat MonashUniversity'
1 He'scurrentlyundertakinga Master's
of takinga complexcommercial
2 There,ssomethingaboutthe challenge
t r a n s a c t i o n a n d e x p r e s s i n g i t c l e a r | y a n d c o n c idetailed
s e | y t h adescriptions
t r e a l l y a p pof
ea|stome.
had to write patent drafts, whichare incredibly
3 I also
the inventionsin preciselegalterms'
times extremelydifficultand demanding'
4 lt was interesting,althoughat with the
I likedbest was workingclosely
5 But l quicklyreaiseOthai what
or enforcingpatents'
other lawyerson liti$ation'defending
6|usua||yspendmos-tofthedayreviewingdocuments,draftingagreements'
answeringemails'
meetingwith clientsand' of course'
placedin relationto the verbs?
b Whereare me adverbs
8 Foreach of these sentences,decidewhichadverbsdon't fit.
1 My work often/ carefully/ regutartyinvolveslitigatingcharter party disputes,
althoughI occasionally/ sometimes/ remarkablyhandlecollisioncases as
well.
2 Maritimesalvageclaims can be ctosety/ extremety/ incrediblychallenging
due to the complicatedlegalsituation.
3 The remarkably/ quickly/ extremelyfast pace of change in the area of
informationtechnologylaw means that lawyersat our firm havero mainty
/
regularly/ often attend seminarsabout the effects of new legislation.
4 Researchingtechnicalinnovationscarefuily/ extensivety / extremelyis
a(n) very/ extremely/ regularlyinterestingstep in the processof writinga
patent draft.

Speakins
t: lnternshíps
Listening
r, MichaelGrantdescribed
hisinternship
with a marit¡me
lawfirm.lt is
forlaw-schootstudents
to workinthesummer months asaninternin a law
T, government
department,
non-profit
groupororganisation.
Aninternshipcanbepaid
unpaid.
Someinternships
leadto coursecredits
whichcounttowardsa lawdegree.'
Discussthese questionswith a Dartner.
1 Haveyou done an internship?lf so, describethe organisation
and your
dutiesthere.
2 what do you think makesan internshipa valuableexperience? what can be
gainedfrom it?
3 Whatwouldyour idealinternshipbe?

rt analysis:
Letterof applíeatisn
for an
ennsFrip
studentsoftenwritea letterof apptication
to apptyforaninternshipin response
ro a
ificadvertisement.
However, it isatsocommon fora student
to writewhatis known
a prospectingletter,or letterof interest,in whichthe senderasksif thereareanv
eningsfor internsat the company or institution.
Quicklyread the letter on page 64 written by a student. ls it a prospecting
letter or a letter of applicationreplyingto a specificadvertisement?
Readthe letteragainand answerthese questions.
1 What kind of organisation
is she applyingto?
2 Whichareasof the law is she interestedin?
What legalwork experiencehas she had?
Whichdocumentsare enclosedin the letter?
the adverbsused in the letter.why do you think the writeruses so
adverbs?What effect does it have?

Unitó Commercial
law
 13
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7:.
JuliaSchwende *).
1 Marktgasse17 :i.

1210Vienna "*
Austria v:
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2 1 November2008
v.,
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8 HawthornRoad .:
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C B 1 13 K L t:
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a DearSir or Madam

Summer internship in commercial law

6l in my second
5 | am a studentof law at the Universityof Vienna,Austria' am now
yearandlexpecttocomptetemydegreeinJune2ofi'7|am interestedinapplying
law which is adveftisedon your website'
for the summerinternshipin commerclal
Btn my studies,I havecámptetedall of the requiredcoursessule¡si_ut]1t*:t:
lamparticu|arlyinterestedincommercia||aw,andhavetakene|ectivecourses|n
e Furthermore'I havefrequently
debtor-creditorlaw and negotiableinstruments'
at my universityon topics relatedto
attendedguest lecturesuná di""u"sions
10 gainedwork experienceat a law firm' as I
commerciallaw. | havealso already my
smatllaw firm specialisingin tax law in
carriedout an internshiplast summeralta
hometownofDornbirn.llTheremydutiesincludedresearchingnew|egislationand
12Fulldetailsof my studiesand work
helpingthe pannerspreparecasesfor trial.
résumé'
experiénceare includedon the enclosed liketo get
13The internshipyou are offeringis especiallyattractivet-?*", as I would
many international
to work at a targl commerciallaw firm with
to know what it ¡s t¡t<e
abroadin an English-speaking country'
clientsand to havethe experienceof iorking that I wou[d
1aI am extremelymotivatedand a hardworkérand I sincerelybelieve
makethe best of such an opportunity'
151can confidentlysaythat I havea particularly good knowledgeof English'as I
two
my familyin the usA and I havetaken
havespent."u"rál summervacationswith161ám English
enólosingwritingsamplesin
coursesin LegalEnglishat my universiiy.
werewrittenas part of my LegalEnglish
as you requestin your adveruthe letters
1BI look forwardto
?iül"ffa you requirefuftherinformation,pleasedo contactme'
hearingfrom You.

YoursfaithfullY

JuLia/chñenae
 13 Matchthe sectionsand ideaswhichshouldbe includedin a letterof
application (a-m)withthe corresponding
for an internship sentencesin the
enoe letter(1-18). Somesections/ideasare used morethan once.
-^ 1-7
>t ll
a Reference to howyou found out aboutthe internship
enna b Youraddress
Jstfla c Reference to thingsrequestedin the ad (writingsample,references,etc.)
and enclosedin the letter
2008 d Recipient's address
e Reasonsfor your interest in internship
f Descriptionof your legalwork experience
g Introduction, sayingwho you are
h Date
i Descriptionof yourstudiesand coursework
j A 'callfor action'whichclosesthe letter
k Salutation
I Reasonfor writingletter
m Detailsof any personalqualities, qualifications
or skillsthat makeyou right
for the internshio

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ef fFi BsH Á S m F P itsrd $ 3qB?8ry
nd l\k&*4W!;üY$ SetAbt E€EF

14 Readthis text. Wheredo you think it appeared?

:nn
Powderhouse Sommerville LLP International Commercial Law Internship
The international
commerciallaw firm PowderhouseSommervilleLLP launchedits International
CommercialLaw Internshipat the UniversityLaw Schoolin 2006 and has renewedit for the
current academicyear.
rmy PowderhouseSommervilleLLP is one of the world'slargestlaw firms,with over 1,600lawyers
lno and 15 officesin NorthAmerica,Europeand Asia.
( ProfessorMay Rikos, Directorof the UniversityLaw School,said: 'The UniversityLaw School
welcomesthe opportunityto work with one of the first-rankglobalcommerciallaw firms.'
get
Underthe terms of the internship,studentstakingInternational CommercialLaw coursesin
onal
'ntn/
Mergers,ComparativeAntitrust Law and World TradeLaw will be invitedto compete for the
internship.Selectionwill be on the basis of an essay plus interviewof the students who achieve
rd
the top essay mark in each of the relevantcourses.Applicationsmust be submitted by March
10, and the interviewswill take place in late March/earlyApril. The Internshipwill take place from
May to July inclusivein the PowderhouseSommervilleFrankfurtOffice.
n two
rglish Linkto applicationat the bottom of this page.
h

Readthe text againand answerthese questions.

Jto
1 Whocan applyfor the internship?
2 Howwill studentsbe chosenfor the internshio?
3 Whenand wherewillthe internshiptake place?
4 Howcan a studentapply?

rit$mg
x: Le€ten'
#f mpp*$*mt$*sx
Writea letterof applicationin responseto the internshipadvertisement
in
Exercise1,4.Be sure to includeall of the sectionsand ideasnecessarv.
Unitó Commercial
law
LAWIN PRACTICE
Lead-$r¡
| n t e r n s h i p s a r e V e r y o f t e n t h e f i r s t e x p e r i e n chave
e y ooffices
u n g t aacross s h aqtobe'
w y e rthe veofthereatitiesof
in trre wort<piu... Nunv'turge tegattirms
gtobatisation
ámptoyinq lawyers of manynationatities'
with a partner'
17 Discussthese questions
the term globalisation?
1 What do you understandby economies?
to the üobalisation of the world's
2 What factors navecontributuo
of globalisation for:
3 Whatare the implications
lawYers?
a businesses? b commercial

asertts
3; Kstesf ecm!'*ertEe[
R.eadim$
M o s t c o m p a n i e s e n g a g e d i n i n t e r n a t i o n a l t r is
a dcommontv
e m a k e ugoverned e na
s e o f a g bv tstorepresentthem
principat
abroad. Therelations;;ffi; ;;;, _.rJ its
andthe European Ünionhassoughtto harmoniset
commercia[ agencyagreement,
to giveagentsgreaterprotection'
memberstates,uq.n.},tu*, in order
T h i s t e x t i s t a k e n f r o m t h e i n t r o d u c t i o n t o a d o c u agreements'
mentwrittentoinformlawyersabout
the law concerning commercia[ agency
recent chanqes in

lsReadthetextanddecidewhetherthesestatementsaretrue(T)orfalse(F).
goodsand services
agentis a personwho sells
1 under EU law,a commercial
on behalfof a PrinciPal'
2Agentsaregenerattypaidaflatrate;thatis'achargethatisthesamefor Re
agreements base
oncea customer l}c
agency
. ilL?,ili; wi' oftenabandon
becomesestablished'

definedbvEU
lTheroleo.fcommercialagentsis.wellknor¡¡n.Theyactasindependentintermediaries
representingffi;;;'tt"' i"'t'" ;'**' ; ":#'":':1-agent is
havingcontinuing
,*t o i, ul"rr-employed,intermediary
Directiveg6/653asa person

I',t""
il,tüx L*:w;:mnl'"lli
***::,:,';"lx
r::ffi * rr p;;;;;from ttreirprincipals,but arrangesales
directly
his principal...,.rhey do nor b"y
IHXT"T;"""TT'lllllug
Hfi,ffiil*filif.T".:H*'T:i*'*run:ff desa
provi
T:H::llffi'triffisupplier,o radert
, É;;*:l*"""-i,ffi a foreign
': :11'::::"" ""'{
o"n"rrui"'* o""tt*ut
market'By
ñ;;;;"
convenienr
:ffi:H?liT:J:"#"'J"':
"nuutirrg
*il:*i:h".:T:f
*i**;tffi
#it"$*:ilfr
'j*};,'Jln-i"';tJ*;J:;*"**tt"X':""'"mm
:ffi
:tff
H:H*,i;;;;';:;;;u. *urk".-ton a'no cufe,no pav'basis'

states adoptthe same laws'

¡s tne processby whichdifferent
I Harmonisation
 3 But the position of the commercial agent is r,rrlnerable.
Becauseof the agent,srole as
intermediary, the principal necessarilyhas perfect
knowledge of ü" .,r;;;;";,
by the agent. As sales volumes build, the temptation or"**¿
for the principal to circumvent
the agent and enter into direct relationships with
customers can often become
overwhelming against the background of an increasing
commission bill, often fuelled by
repeat orders from the same customers. It is ao*-orrpluce,
therefbre, for the commercial
agent to find his relationship with his principal brought
ro an end precisely at the
moment where the agent's efforts have resulted in
the establishment of a significant
new customer base for the principal in a new market.
In this way, the agent becomes
the victim of his or¡m successand the principal
takes advanrug"trah" goodwill in the
principal's product, created largely as a result
of the agent,sefforts.

19 Readthe text againand answerthesequestrons.

1 why is commerciar
agencyimportantfor internationar
trade?
2 Howdo commercialagentssometimesbecome'victimsof the¡rown success.?
20 Matchthesewordsand phrasesfromthe text (1-4)
withtheirdefinitions
(a_d).
1 commission a wnenpaymentis onlymadefollowing a positiveresult
2 intermediary b the benefita businessgets from havinga good reputation
3 a 'no cure,no pay'basis c someonewho carriesmessagesbetweenpeoprewho
4 goodwill are unabre
to meet
d paymentto someonewho seils goodswhichis directry
reratedto
the amountof goodssold

Remd$*ug
4: fl#**fl$?trscñe*
e{Xtr$}üy
##ffigr&cfx
Ihelcc'z
Model commerciat Agency contract
iscommonty usedbybusinesses
entering
a
newmarket, andisanexampte of a standard
form¡contract.
ltsprovisions
arebasedon
prevailing
practice
in international
traderatherthannational
laws.
what are the advantages of usinga standardform contractbasedon common
businesspracticesratherthan negotiatingcontractsaccordingto domesticraws?
what kind of provisionswourdyou expectto find in
a commerciaragency
of contract?
rll' ChanceComputingis a UK-based companythat producesbudgettaptop
computersfor schoorchildren. lt uses agentsto sell its productsto other
'f countries.Readthe crauseson the next pagetaken
from chancecomputing,s
standardcommercial agencycontractand answerthesequestions.
1 Canthe agentset the priceat whichgoodswiil
be sordto third parties?
2 Underwhat circumstances can the contractbe terminated?
I
3 What is the governinglaw?
¡T
4 lf the principalbreachesthe contract,what court
r hasjurisdiction?

commercial agencyagreement
Internationarchamberof commerce¡s an organ¡sation of businessesfrom over
Jntriesthat worksto promoteand support globaltrade
and globaltsat¡on

unitó commercialtaw
e
 businessfor the Principd anü
The Agent shall endeavourto obtain
saidPrincipal to the best of his
is bound to servethe interestsof the
ail information necessaryfor the
abitity.He will do his best to provide
purposeof promoting b"i"t"' and especiallyinform the Principal
immediateiy about every order received'
and paymentconditions
tt" *uy rroid"-oiut" toá tne prices' deiivery
of the Principalwithout his consent'

gThecontractshallcomeintoforceonl0February2006andshallbe
valitl tbr an indefinite Period'
sherethecontracthasbeenagreedforaflredperiod,itshallbe
expectedfbrthesameperiodprovidedthatnoticeofterminatioi"o."]'
nothavebeensewed,byregisteredletter'atleastsixmonthspriorto.
the end of a calendarquarter'
indefinite period' it may
strere the contracthas been agreedfor an
by registeredletter' six
be terminatedby either party thereto giving'
quarter'
months' notice irior to the end of a calendar
l0TheprovisionsoftheEECCouncilDirectiveoflsDecember1936
ontheco-ordinationofthelawsoftheMemberStatesrelatingto
In other
self-employed agents(86/655/EEC)applyto this agreement'
is to be consulted'
respects'the law of the domicile of the Agent
ltArrydisputesarisingoutoforinconnectionwiththisagreementshall
where the claimant
be deciiledby the cámpetentcourt in the area
has his residenceor registeredoffices'

24Takeitlnturnswithapartnertoexp|aintheprovisionsofthecontractusing
$Á[pl¡]vour ' own words.
l A N s w EI R
iiüüil pexmLss'ankom üe prr'na4al
Ctause4 sat¿süaL üe a4enbneed's
EXAMpLE:
eb'
tn üange prkx-s and' c'ond)ü'onsof saJ'e'

Readins "E'he &ge*tsfe*uneEt

e**"*rr*ercEat
s:
xSSS
ffimgaa&mt&mms
ffiinective$
rgg¡[asamended]
Regutations is an example
Thecommerciat Agents[councitDirectiveJ
EUDirective8ólós¡'as
of an EUdirective ¡n.otüutu¿ into Engtiihtaw,andimplements
agencycontractin Exercisez3'
referredto in the commercial
pageand answerthese questions'
25 Quicklyread Regulation17(1) on the next
1 What ¡s the generalaim of the regulations?
2UndertheAct,whattwowordsareusedtorefertothemoneytowhichan
agentm|ghtbeentit|edfo||owingtheterminationofanagencyagreement?
these two words?
What is the differencein meaningbetween
 Entitlement of commercial agent to indemnity or compensation
on termination of agency contract
77 (1) Thisregulation haseffectfor the purposeof ensuringthat the commercial
agentis, afterterminationof the agencycontract,indemnified in
accordance with paragraphs (3) to (5) belowor compensated for damage
in accordance with paragraphs (6) and (7) below.
(2) Exceptwherethe agencycontractotherwiseprovides,the commercial
ratherthan indemnified.
agentshallbe entitledto be compensated
agent
(3) Subjectto paragraph(9) and to regulation18 below,the commercial
shallbe entitledto an indemnityif and to the extentthat-
(a) he has broughtthe principalnew customers or hassignificantly
increased the volumeof businesswith existingcustomers and the
principalcontinues benefitsfrom the business
to derivesubstantial
with suchcustomers;and
(b) the paymentof this indemnityis equitablehavingregardto all
the circumstancesand, in particular,
the commission lostby the
commercialagenton the business transactedwith suchcustomers.
(a) The amountof the indemnityshallnot exceeda figureequivalent to an
indemnityfor one year calculated
from the commercialagent'saverage
annualremuneration overthe precedingfive yearsand if the contractgoes
backlessthan five yearsthe indemnityshallbe calculated on the average
for the periodin question.
(5) The grantof an indemnityas mentionedaboveshallnot preventthe
commercialagentfrom seekingdamages.
(6) Subjectto paragraph(9) and to regulation18 below,the commercial agent
shallbe entitledto compensation for the damagehe suffersas a resultof
the terminationof his relationswith his principal.
suchdamageshallbe deemedto
(7) Forthe purposeof theseRegulations
whenthe terminationtakesplacein eitheror bothof the
occurparticularly
namelycircumstances
followingcircumstances, which-
(a) deprivethe commercial agentof the commissionwhichproper
performanceof the agencycontractwouldhave procuredfor him
whilstprovidinghis principalwith substantial
benefitslinkedto the
agent;or
activitiesof the commercial
(b) havenot enabledthe commercial agentto amortisethe costsand
expenses that he had incurredin the performanceof the agency
contracton the adviceof his principal.
(8) Entitlement to the indemnityor compensation for damageas provided
for underparagraphs (2) to (7) above also
shall arisewherethe agency
contractis terminatedas a resultof the deathof the commercial
agent.

Readthe wholeof Regulation!7r andanswerthese questions.

1 Accordingto L7(2),underwhat circumstances will agentsbe grantedan
indemnityratherthan compensation?
2 Accordingto 1-7(3),what is necessarybeforean indemnityis granted?
3 Accordingto L7(4),how is the indemnitycalculated?
4 ls compensation availableif contractends followingthe deathof the agent?

last two paragraphs(17(9) and 17(10)),havebeen cut from this extract.

[aw
Unitó Commercial
 you to ask aboutthe legalprotections
27 A colleaguefrom outsidethe EUcontacts
inp|aceintheEUforcommercia|agents.WriteaSummaryofRegulationl-7to
circulateto your liti$ationdepartment'
¡
counset
2: l,leetingw¡th corporate
Listening to break
Europe, chancecomputing wants
Fottowing satesin southern
two yearsof increasing
market.JennyMilter'sates of chance
Director
intothe morecompetitive centralEuropean
corporatecounsel,for adviceon terminatinga numberof
Computing, hasaskedCtiveSanborn,
agreements.
agenc}/
28(.<e,zlistentothefirstpartoftheirconversationandanswerthesequesttons.
lWhydoesChanceComputingwanttoendtheagreementswiththeiragentsln
southernEuroPe?
an agentcan be paid,according
2 what is the maximumamountof compensation
to the regulations?
and answerthese questions'
conversation
29 ( i e.e Listento the secondpart of their
1 ls compensation limitedonlyto lost commissions?
2Forhowmanyyearsaretheagents'commercia|activitiesrestrictedfollowing
terminationof the agreement?
3o(íe.2,6.3L¡stentothewholeconversationagainanddecidewhetherthese
statementsare true (T) or false (F)'
1 The agents are in breachof contract'
2 Underthe agreement, the minimumnoticeperiodis six months'
3Theagreementa||owsforthepaymentofanindemnityofuptooneyear's
averagecommissionfees'
4Theagentsmustmakeanyclaimsforcompensationwithinoneyearofthe
terminationof the agreement'
clause is valid for five years'
5 The restraint-of-trade
6Underthe|aw,arestra¡nt-of-tradec|auseinanagencyagreementmustreferto
eitherthe relevantgeographical area or the type of goodsin question'
TThe|awyerne|ievesacourtwou|dbeIike|ytofindfortheagentsandnotupho|d
therestraint-of.tradec|auseiftheprincipa|breachedthetermsoftheagreement.

2: Rote-ptay:
Speaking options
discuss¡ng
discussesthe options
31 Fo|lowing his discussionwith JennyMi||er,C|iveSanborn
avai|ab|etoChanceComputingwithaninternwhoisshadowinghim.Withapartner'
r o l e - p l a y t h e i r c o n v e r s a t i o n . D i s c u s s t h e v a r i o u s o p t i o n s t h a t a r e a vcase'
ai|ab|eto
possibleoutcomes.considerthe best
chancecorpuiing, togetherwith their
worst case and most likelyscenartos'
Studentl:YouareC|iveSanborn.SummarisethepositionthatChanceComputing
are in'
student 2: you are the intern shadowingclive. suggest some optionsfor the
companybasedon the informationin this unit'

Writing2: Surnmary packagefor

a modelcompensation
32 Writea summaryof yourdiscussion'Include
to offertheiragents'
Computing
ffifm Chance
lDp.f47l
Language
Focus

1 word formationcompletethe table with the adjectiveform of these nouns.

merchant
j commerce
,Tugot"t'*

Noun-adiectivecollocationsWhichof the adjectivesfrom Exercise1 collocate

with
thesenouns?(Somecan coilocatewith morethan one adjective.¡
1 ................. instrument
trad¡ng
3 .......
.........................
bank
.......
4 agency
5 law
6 . . . .terms
AbbreviationsWhat do these abbreviationsstand for?
1 UCC
2 WTO
3 UNCITRAL
Key terms in intellectual property law which word completesall of these
expressions?
t draft
2 application
3 to securea
4 to enforce
5 to grant

l.--;:-.-^,
. .".:':',
-,andsentencesberowrromtheunitusingthe
phrases
;::ff:[,l:T;;il?|"$:ie
by for into of of on on

1 to advisea cfient a matter

2 a breach contract
Commercial law is governed. . ........... international
treaties.
An agentworks . behalf a principal.
to apPly an internship
a contractcomes .......... force