Certification in Supplier Diversity Practice Exam

Which of the following describes the United Nations Convention on Contracts for the International Sale of Goods?

1. A regional agreement between countries

2. An international treaty governing purchasing of goods

3. A guideline for domestic trade

4. A set of rules for personal property transactions

The correct answer is: An international treaty governing purchasing of goods

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty specifically designed to establish a uniform framework for international commerce, focusing on the sale of goods among countries. It aims to facilitate international trade by providing a coherent set of legal rules that parties from different jurisdictions can rely upon when entering into contracts for the sale of goods. This treaty addresses various aspects of contractual obligations, rights and remedies, and aims to reduce uncertainty and conflicts arising from diverse national laws. This international nature of the CISG distinguishes it from other types of agreements or guidelines that pertain only to regional commerce, domestic trade, or specific personal property transactions. The treaty specifically applies to commercial sales entered into between businesses in different countries that are contractual parties, thereby fostering smoother and more predictable international trade relations.