International Commercial Law - Random Test Questions

1. GlobalBank introduces an AI-driven credit scoring system that makes automated decisions on loan approvals. An applicant who was denied a loan requests more information about how the decision was made and asks for the decision to be reviewed by a human. Which of the following rights under GDPR applies to this situation?

2. A Spanish wine producer, VinoEspaña, sells wine to a U.S. distributor, WineWorld, headquartered in California. WineWorld markets and sells VinoEspaña’s products throughout the U.S. When a U.S. customer in Oregon becomes ill after consuming a contaminated bottle of VinoEspaña wine, they sue both WineWorld and VinoEspaña in an Oregon court. VinoEspaña argues that it never directly sold wine to Oregon and only dealt with WineWorld in California. What is the most relevant factor in determining whether the Oregon court can assert jurisdiction over VinoEspaña?

3. A contract states: “If either party experiences a significant change in circumstances fundamentally altering the economic equilibrium of the Agreement, making performance excessively burdensome, the party may request renegotiation. If no agreement is reached, either party may terminate the Agreement.” What type of clause is this?

4. A Canadian company and a Japanese company include a clause in their contract stating, “Any dispute arising out of this contract may be resolved in the courts of Tokyo, but either party may also pursue other jurisdictions.” Later, the Canadian company files a lawsuit in the U.S. 2 What kind of forum selection clause does this contract contain?

5. A state-owned enterprise from country J enters into an investment agreement with a multinational corporation from country P. The corporation sues the state-owned enterprise for breach of contract, but the state denies being bound by the arbitration clause. What might the corporation argue to establish the state’s responsibility for the arbitration?

6. A U.S. technology company and an Indian supplier agree to resolve all disputes through ICC arbitration with Singapore as the seat. A year later, the U.S. company alleges breach of contract and seeks to initiate court proceedings in California, arguing that the arbitration clause is void due to a mistake in the contract. Under which principle would the arbitration agreement still be considered enforceable, even if the main contract is void?

7. In an arbitration case administered by the London Court of International Arbitration (LCIA), the parties are concerned about the impartiality of the appointed arbitrator. What process does the LCIA provide if the parties want to challenge the arbitrator’s appointment?

8. A tour operator signs a contract with a hotel chain to book rooms for a series of summer holiday packages. The contract stipulates a minimum number of reservations that the tour operator must fill, with penalties for shortfalls. However, a natural disaster strikes the destination city, severely reducing tourism. The tour operator cancels half of the bookings and argues that the contract’s purpose has been frustrated. Can the tour operator avoid the penalties under the contract?

9. A company headquartered in a European country enters into a joint venture with a local firm in Asia. After a change in government, the local firm is nationalized without compensation. The foreign company files for arbitration under a BIT between the two countries. What is the most likely argument the company will use?

10. What was the primary legal issue addressed in the appeal in the case of Vedanta Resources v Lungowe (2019)?