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Tech Trends Shaping Business Research

The barrage of new technologies that are introduced to the market, each with the promise of altering (or at least affecting) the corporate world, can easily make one numb. However, our examination of a few of the more important IT trends makes a strong argument for the fact that something important is taking place. Granularity, speed, and scale—the three key elements that have characterized the digital era—are typically being accelerated by these technological advancements. However, the extent of these shifts in bandwidth, computer power, and analytical complexity is what's creating new opportunities for organizations, inventions, and business models. Greater innovation may be made possible by the exponential gains in processing power and network speeds brought about by the cloud and 5G, for instance. Advances in the metaverse of augmented and virtual reality provide opportunities for immersive learning and virtual R&D using digital twins, for example. Technological development...

Business Cost Management in North America

credit to the seller, who may utilize the credit by presenting the seller's bank with the necessary paperwork (such as a draft and the title documents mentioned in the credit letter). 9. The traditional documentary letter of credit, which was first created as a means of payment, has recently changed to become a different kind of security.gadget referred to as a "standby credit." In this case, the underlying agreement betweenthe parties is usually an ongoing "relational" one as opposed to a discrete one."transactional" buy and selling agreement that forms the basis of the traditionalofficial letter of credit. The standby credit will never be given if the underlying relational contract is fulfilled correctly; if there is adefault, although the holder is allowed to provide a record to the issuer'sbank, resulting in the holder's payment. Thus guaranteeing fulfillment of the issuer's non-monetary commitments, the standbycredit is comparable to a performance bond.Why would someone choose a letter of credit instead of a more secure method ofconventional security interest in personal property? Oftentimes, additional lenderseffectively prohibit the acquisition of a valuable security interest. Additionally, there mightinstances where the price of implementing the security would be unaffordable inin connection with the sum being obtained.

The Uniform Commercial Code (UCC) in the United States includesclauses pertaining to

personal property and letters of credit (art. 5)protection (Article 9). Despite the fact that certain Canadian provinces have adopted or areConsidering passing personal property security laws akin to the UCC,In Canada, neither federal nor provincial laws exist regardingcredit letters. However, frequently in both domestic and internationaltransactions, Canadian credit letters will be stated as being governed by theThe Uniform Customs and Practices (UCP) pertaining to Documentary CreditsChamber of Commerce International (ICC).2. Geva and Graham provide thebelieve that, in Prof. Goode's opinion, it is most likely true in Canada as inEngland that the UCP is merely a collection of common guidelines with no legal significance unless expressly included by reference in the contract. ThirteenThe UCP was only recently updated 4 and now specifically pertains todocumentary credits in addition to standby credits. Regarding the state of theAs far as UCP in the US is concerned, it's interesting that New Yorkallows the application of UCC art to be excluded by the parties to a letter of credit.5 in the UCP's favor.15When utilizing a letter of credit in a United States context, what factors should come first given these conflicting and extrastatutory provisions?United States/Canada exchange? There will be the customary pressures to utilize the letter of credit exactly as it is if it is a standard form document, regardless of itspertinence to the particular transaction in question.

Canadian bank standard formDocuments typically outline UCP governance.

In the event that the parties arevoluntarily, an unconventional form (also known as a "one-off" in Canada)document) ought to be written with the situation in mind. This will raise thepossibility that the records on display will match thosenecessary.' 6 If it is enforceable in the state of the U.S. party, as it may be inNew York, it would be very preferred due to the likelihood ofinterpretation, to choose to have the UCP administer the credit. Should this not be the caseif so, the document ought to be governed by a choice of law. Oftentimes, it isit is anticipated that the laws governing the credit willunderlying transaction, but if a "unusual" decision has been made for the underlying transaction, that might not happen automatically; for example, the law ofa jurisdiction distinct from each party's own. Given that there most likely won'tstriking disparities in how the two apply substantive ideasnations, and since the money was paid instead of the document being createdwould probably be contested, hence it could be prudent to selectthe forum's paying bank's law.Prior to moving on from this topic, it could be helpful to quickly discuss the mostCurrent substantive issue about letters of credit in Canada: their independenfrom the transaction that underlies it. According to the UCP's Article 4, "all partiesconcerned trade records rather than the products, services, or other acts that the documents might be related to."1 7 A well-known exampleFraud is to this principle.

Geva and Graham have examined the English andCanadian case law, coming to the conclusion that the UCC art.

5 test for fraud is "illusory" and that "compared to their English counterparts, Canadian Courts have been less hesitant to invoke the fraud excep tion." 18 Van Houten contendsthe English stance, as validated by the most recent United City MerchantsCase 1-9 demonstrates a rigorous autonomy that is more visible than actual.while doing so, finds solace in Stephenson L.J.'s remarks in theThis case's English Court of Appeal's endorsement of "the flexible standard"inside the UCC. 20 Despite this commendation, the House of Lords permitted theappeal, Van Houten acknowledges that the evidence "is not supportive in any way."of the liberal perspective.The outcome most likely takes Canada back to its historical location in the middle of the Atlantic. The case that we have found to be the most humorous addition to the literature involves the plaintiff employing hisapplying his economic acumen to his personal life, with regrettable outcomes. Within theduring the cohabitation agreement negotiation process, the plaintiff claimed that hewould give his cohabitee a note of credit provided that shewould only utilize the letter of credit if she moved in with him.and he was unable to tie the knot with her in a year. In a matter of days after obtainingthe defendant tried to obtain the money through her Texas bank using the letter of credit without meeting the requirement. Though in this instance theAlthough the payment was enjoined by the Supreme Court of Ontario, this is scarcely a majorGive up on the more conventional route of autonomy. The situation wasn't atrial, just a request to extend an injunction, and, ultimately, theThe defendant did not present any proof. Thus, the Court was left with just thePlaintiff's unequivocal proof that the credit letter was subject to aan oral collateral agreement.

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