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XXAnnualWillemC.VisInternationalCommercialArbitrationMoot
Inthematterofarbitrationunder
theChineseEuropeanArbitrationCentreHamburgArbitrationRulesCaseNo.20120107
UNIVERSITYOFBELGRADE
MEMORANDUMFORCLAIMANT
Claimant
MediterraneoExquisiteSupply,Co.
45CommerceRoad
CapitalCityMediterraneo
v.
Respondent
EquatorianaClothingManufacturing,Ltd.286ThirdAvenue
OceansideEquatoriana
COUNSEL
VladimirBo?kovi??MarijaBu?kovi??Ma?aMi?kovi??AndrijanaMi?ovi?TamaraMomirov?DraganaNikoli??DinaProki??DejanSiv?ev
UniversityofBelgrade
MemorandumforClaimant
Page|
PAGE\*roman
iii
TABLEOFCONTENTS
LISTOFABBREVIATIONS iv
INDEXOFAUTHORITIES viii
INDEXOFCOURTCASES xxviii
INDEXOFARBITRALAWARDS xxxvii
INDEXOFLEGALACTSANDRULES xli
INDEXOFOTHERSOURCES xlv
INDEXOFINTERNETSOURCES xlviii
STATEMENTOFFACTS 1
INTRODUCTORYREMARKSONLEGALARGUMENTSANDAPPLICABLELAW 2
TRIBUNALSHOULDNOTCONSIDERMR.SHORT’SWRITTENWITNESS
STATEMENTIFHEISNOTAVAILABLEFOREXAMINATIONATANORAL
HEARING 4
TheTribunalshouldapplytheIBARules 4
Mr.Short’swrittenwitnessstatementshouldbedisregardedifheisnotavailablefor
examinationatanoralhearing 5
CEACRulesandtheIBARulesentitleClaimanttoexamineMr.Short 5
ConsideringMr.Short’swrittenwitnessstatementwhendecidingonthemerits
wouldviolatefundamentalprinciplesofarbitralprocedure 6
DisregardingMr.Short’swrittenstatementwouldnotjeopardizetheeffectiveness
oftheaward 8
AbsenceofMr.Shortfromthehearingcannotbeexcused 9
RESPONDENTWASLATEINDELIVERINGPOLOSHIRTSASCONTRACTED
DELIVERYDATEWASNOTMODIFIED 10
TherewasnomodificationofthedeliverydatesinceanymodificationoftheContract
hadtobeinwriting 11
Choice-of-lawclausecontainedintheContractdoesnotexcludetheeffectiveness
ofthereservationmadeunderArt.96CISG 11
TheCISGcontrolstheextentoftheexclusionorderogationfromitsprovisions 11
ThePartieswerenotfreetoexcludethereservationmadebyMediterraneounderArt.
96CISG,sincetheCISGdoesnotallowsuchexclusion 12
ByvirtueofreservationmadeunderArt.96CISGMediterraneo’slawisapplicable
totheformoftheContract 13
Respondentwasawareoftherequirementofwriting 14
TherewasnooralmodificationoftheContract 15
RESPONDENTDELIVEREDNON-CONFORMINGPOLOSHIRTS 17
RespondentfailedtodeliverpoloshirtsofthequalityrequiredbytheContract 17
Adherencetothe‘childlaborfree’policyisoneofthedeterminantsofthequality
requiredbytheContract 18
RESPONDENTfailedtoadheretothe‘childlaborfree’policyofOceaniaPlus 19
Inthealternative,deliveredpoloshirtswereunfitfortheparticularpurposeforwhich
theywerepurchased 20
Boththeactualuseof,andameresuspicionof,useofchildlaborinthe
manufacturingprocessofRespondentmakesallofRespondent’sproductsunfitforresale
inOceania 20
RespondentkneworoughttohaveknownthatOceaniaisamarketwhichplaces
specialemphasisonfairtradeandtheobservanceofethicalprinciples 22
ItwasreasonableforClaimanttorelyonRespondent’sskillandjudgement 23
Inanyevent,Respondentfailedtocomplywiththewidelyacceptedinternationaltrade
usageintheapparelindustry 24
Prohibitionoftheworstformsofchildlaborrepresentsabasicethicalstandard
appropriatetoberegardedasinternationaltradeusage 24
Theeliminationoftheworstformsofchildlaborisausageinapparelindustry
whichiswidelyknownandregularlyobservedbywhentradinginternationally 25
Respondentkneworatleastoughttohaveknowoftheprohibitionofchildlabor
usageinapparelindustry 26
CLAIMANTWASENTITLEDTOAVOIDCONTRACT 27
RespondentcommittedafundamentalbreachoftheContract 27
Claimantwassubstantiallydeprivedofwhatitwasentitledtoexpectunderthe
Contract 28
TheresultofthebreachwasforeseeabletoRespondent 28
ClaimantdidnotlosetherighttoavoidtheContract 28
ClaimanteffectivelyavoidedtheContract 29
CLAIMANTISENTITLEDTOTHEFULLAMOUNTOFDAMAGES
REQUESTED 30
Claimantisentitledtodamagesforlatedelivery 30
Claimantisentitledtodamagesfornon-conformityofthegoods 32
AllofClaimant’slossesarerecoverable 33
AllofClaimant’slosseswereforeseeabletoRespondent 33
Claimantsuccessfullymitigatedtheloss 34
REQUESTFORRELIEF 35
LISTOFABBREVIATIONS
&
And
§
Section
?/??
Paragraph/paragraphs
AAA
AmericanArbitrationAssociation
AAA/ICDRRules
AmericanArbitrationAssociation/InternationalCenter
forDisputeResolutionArbitrationRules
Art./Arts.
Article/Articles
BG
Bundesgericht(SupremeCourtofSwitzerland)
BGH
Bundesgerichtshof(FederalSupremeCourtofGermany)
CCas.
CourdeCassationdeFrance(SupremeCourtof
France)
CE
Claimant’sExhibit
CEAC
ChineseEuropeanArbitrationCentre
CEACRules
ChineseEuropeanArbitrationCentreHamburg
ArbitrationRules
CEO
ChiefExecutiveOfficer
CIETAC
ChinaInternationalEconomicandTradeArbitration
Commission
CIETACRules
ChinaInternationalEconomicandTradeArbitration
CommissionArbitrationRules
CISG
UnitedNationsConventiononContractsforthe
InternationalSaleofGoods1980
CISG-ACOpinion
CISGAdvisoryCouncilOpinion
CLAIMANT
MediterraneoExquisiteSupply,Co.,oneoffifteen
jointlyownedsubsidiariesofOceaniaPlusandAtlanticaMegastores
Comm.
Commentary
Contract
ContractbetweenMediterraneoExquisiteSuply,Co.andEquatorianaClothingManufacturing,Ltd.,signed
on5January2011
CPRRules
InternationalInstituteforConflictPrevention&
ResolutionArbitrationRules2007
UniversityofBelgrade
MemorandumforClaimant
Page|
PAGE\*roman
v
DAL
DanubianArbitrationLaw
Dr.
Doctor
e.g.
Exempligratia;forexample
ed./eds.
Editor/Editors
emph.added
Emphasisadded
etal.
EtAlii/Alia,“andothers”
etc.
Etcetera,“andsoon”
fn.
Footnote
FTCA
TheForeignTradeCourtofArbitrationattachedtotheSerbianChamberofCommerceandIndustry
GH
Gerechtshof(AppellateCourtofNetherlands)
HG
Handelsgericht(CommercialCourtofSwitzerland)
HR
HogeRaad(SupremeCourtofNetherlands)
IBARules
InternationalBarAssociationRulesontheTakingof
EvidenceinInternationalArbitration2010
Ibid.
Ibidem(inthesameplace)
ICAC
TheInternationalCommercialArbitrationCourtwiththeChamberofCommerceandIndustryoftheRussian
Federation
ICC
InternationalChamberofCommerce
ICCRules
InternationalChamberofCommerceRulesof
Arbitration
ICDR
InternationalCenterforDisputeResolution
ICSID
InternationalCentreforSettlementofInvestment
Disputes
ICSIDRules
InternationalCentreforSettlementofInvestmentDisputesArbitrationRules2006
ILO
InternationalLaborOrganization
ILOConvention
UnitedNationsConventionontheWorstFormsof
ChildLabor
UniversityofBelgrade
MemorandumforClaimant
Page|
PAGE\*roman
xvii
ILODeclaration
ILODeclarationonFundamentalPrinciplesandRights
atWork
Inc.
Incorporated
LCIA
LondonCourtofInternationalArbitration
LCIARules
ArbitrationRulesoftheLondonCourtofInternational
Arbitration
Lexarbitri
Theprocedurallawoftheseatofarbitration,i.e.the
placewherearbitrationwilltakeplace
LG
Landgericht(DistrictCourtofGermany)
Memorandum
MemorandumforClaimantsubmittedbyUniversityofBelgradeFacultyoflawTeamparticipatingattheXXWillemC.VisInternationalCommercialArbitration
Moot
Mr.
Mister
Ms.
Miss
NAI
Netherlands’ArbitrationInstitute
No./Nos.
Number/Numbers
NYC
NewYorkConventionontheRecognitionand
EnforcementofForeignArbitralAwards
OceaniaPlus
OceaniaPlusEnterprises
OGH
Ober33sterGerichtshof(SupremeCourtofAustria)
OLG
Oberladesgericht(CourtofAppeal)
p./pp.
Page/pages
Parties
MediterraneoExquisiteSupply,Co.andEquatoriana
ClothingManufacturing,Ltd.
PO1
ProceduralOrderNo.1
PO2
ProceduralOrderNo.2
PVHRequirements
Phillips-VanHeusenRequirements
q./qq.
Question/questions
QM/WC
QueenMaryUniversityofLondonandWhiteandCaseLLP2012InternationalArbitrationSurvey:
CurrentandPreferredPracticesintheArbitralProcess
Rb
Rechtbank(DistrictCourt)
RE
Respondent’sexhibit
RESPONDENT
EquatorianaClothingManufacturing,Ltd.,anapparel
manufacturer
SC
ApplicationforArbitrationandStatementofClaim
SD
StatementofDefense
Sec.Comm.
SecretariatCommentary
SESGuidebook
SocialandEnvironmentalSustainabilityGuidebook2010
Tr.
Tribunale(ItalianDistrictCourt)
Tribunal
PanelconsistingofProfessorPresidingArbitrator
(presidingarbitrator),Dr.Arbitrator1,Ms.Arbitrator2
TSP
TribunalSupremoPopular(SupremePeople’sCourtof
Cuba)
UNCITRAL
UnitedNationsCommissiononInternationalTrade
Law
UNCITRALRules
ArbitrationRulesofUnitedNationsCommissionon
InternationalTradeLaw
UNIDROIT
InternationalInstitutefortheUnificationofPrivate
Law
US
UnitedStatesofAmerica
USD
UnitedStatesdollars
v./vs.
Versus;against
VAS
HighArbitrationCourt(orPresidiumofSupreme
ArbitrationCourt)oftheRussianFederation
VCLT
ViennaConventionontheLawofTreaties1969
Vol.
Volume
WarnacoSCC
WarnacoInc.SupplierCodeofConduct,2008WarnacoInc.
ZGer
Zivilgericht(CivilCourtofSwitzerland)
INDEXOFAUTHORITIES
BACHER,Klaus
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OxfordUniversityPressNewYork2010
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BIANCA,CesareMassimo
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GiuffrèMilan1987
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(citedas:Bianca)
BISHOP,DoakR.CRAWFORD,
James
REISMAN,MichaelW.
ForeignInvestmentDisputes:Cases,MaterialsandCommentary
KluwerLawInternationalTheHague2005
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(citedas:Bishopetal.)
BJ?RKLUND,
Andrea
Article25
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C.H.Beck-Hart-NomosPublishersMunich2011
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BLACKABY,NigelPARTASIDES,
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REDFERN,Alan
HUNTER,MartinJ.
RedfernandHunteronInternationalArbitration
OxfordUniversityPressOxford2009
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HUNTER,MartinJ.BLACKABY,Nigel
PARTASIDES,
Constantine
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Sweet&MaxwellLondon2004
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(citedasRedfernetal.)
BORN,GaryB.
InternationalCommercialArbitration
KluwerLawInternationalTheHague2009
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??16,21,28oftheMemorandum
(citedas:Born)
BROWN,Drusilla,DEARDORF,Alan,
STERN,Robert
InternationalLabourStandardsandTrade:ATheoreticalAnalysis
InBhagwati/Hudec(eds.),FairTradeandHarmonization,PrerequisitesforFreeTrade?,Vol.1
MITPressCambridge1996
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BULLER,Paul,
McEVOY,Glenn
CreatingandSustainingEthicalCapabilityintheMulti-NationalCorporation
JournalofWorldBusiness,34(4),1999
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CAIRNS,DavidJ.A.
OralAdvocacyandTimeControlinInternationalArbitration
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KluwerLawInternationalTheHague2011
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(citedas:Cairns)
CHEN,Z.
CommentsontheFormalityofContractsforInternationalSaleofGoods,
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COLLINS,Michael
SummaryDispositioninInternationalArbitrationinAlbertJanvandenBerg(ed.),50YearsoftheNewYorkConvention:
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KluwerLawInternationalTheHague2009
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(citedas:Collins)
CORY,Jacques
ActivistBusinessEthics
SpringerBoston2005
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(citedas:Cory)
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BernardoM.
Lesdommages-intérêtsconventionnelsprévusencasderupturedecontrat,lesclausespénalesetlesdommages-intérêtsàcaractèrerépressifdanslescontratsinternationaux
InternationalBusinessLawJournalNo.1/2004
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DILLER,JanelleMarie
ASocialConscienceintheGlobalMarketplace?LabourDimensionsofCodesofConduct,SocialLabellingandInvestorInitiatives
InternationalLabourReview,Vol.138,1999-2
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load/pdf/diller.pdf
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(citedas:Diller)
DILLER,JanelleMarie,
LEVY,David
ChildLabor,TradeandInvestment:TowardaHarmonizationofInternationalLaw
AmericanJournalofInternationalLaw,Vol.91,No.4,1997
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EnforcementofPenaltyClauses:ACivil-CommonLawComparison
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DJORDJEVIC,
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??125,126oftheMemorandum
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(citedas:Eorsi)
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HarryM.
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“MusselsCase”,the“StolenAutomobileCase”,andthe“UgandanUsedShoesCase”
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Olga
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