Seller’s Liability under Article 42 of the CISG

Purpose: This study explores the liability of sellers of goods that infringe Article 42 of the United Nations convention on Contracts for the International Sale of Goods (CISG) based on the official opinion of the CISG Advisory Council. Research design, data, and methodology: The requirements for seller liability under Article 42(1) of the CISG includes the seller's awareness and geographic limitations. This study also examines the requirements for seller immunity under Article 42(2), including the buyer's expectation of awareness and investigation. Results: M ost o f t he e xisting o pinions a nd t he o fficial o pinions o f t he C ISG A dvisory Council seem to be consistent with the responsibility of the seller who delivers goods infringing on intellectual property rights. However, regarding the timing for determining the suitability of rights to the goods, there are areas where opinions are different from those of scholars who view them as a transfer of risk. Conclusions: The CISG Advisory Council's official opinion appears to be a reasonable interpretation of Article 42 taking into account its purpose, which is to protect the interest of the purchaser in the free use of goods that are not subject to third-party rights or claims, the Secretariat's commentary on the Convention's legislative history, and the existing views of scholars. Therefore, practitioners should prepare for related situations by referring to the official opinion of the CISG Advisory Council on Article 42 of the CISG.