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- 3102 (408)
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Lecture notes of 15 pages for the course 3102 at BC (1376 article text)
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6/11/24, 8:37 PM 1376-Article Text-7266-1-10-20240118TRANSNATIONAL BUSINESS LAW JOURNAL
Volume 3, Number 2, August 2022
P-ISSN: 2722-1105 E-ISSN:2747-0210
DOI: https://doi.org/10.23920/transbuslj.v3i2.1376 Publication Date: 31 August 2022
Publisher: Transnational Business Law Depaertment, Faculty of Law Universitas Padjadjaran
UNVEILING A NEW CURTAIN: THE APPLICABILITY OF
CISG ON SALES OF DRONES
Chelsea Gracia*
ABSTRACT
Drones have become an integral part of the aviation industry, encompassing a wide range of sizes
and functions. This paper examines the interpretation and application of the United Nations
Convention on Contracts for the International Sale of Goods (CISG) to the sale of drones. While
drones are not explicitly excluded from the CISG, their absence from its provisions can be attributed
to the CISG's formation predating their widespread commercialization. The absence of specific
provisions addressing drone sales within the CISG has led to diverse interpretations. However,
considering the CISG's objective of establishing a uniform legal framework and promoting good
faith in international trade, extending its application to the sale of drones is conceivable. As an
internationally recognized legal instrument for the sale of goods, the CISG provides a convenient
framework for parties involved in drone transactions. However, the CISG must also consider the
intricacy and risks associated with certain goods, which may conflict with other legal regulations or
introduce complexities in their legal treatment. Drones exhibit diverse types, functionalities, and
operational contexts, and their regulation varies significantly across different countries due to
airspace and national sovereignty considerations.
Keywords: sales of drones; cisg scope; international sales of goods.
I. INTRODUCTION
The proliferation of drone technology has presented distinctive legal challenges, particularly
regarding the sales of drones in international trade. A drone is an unmanned aircraft. Drones are more
formally known as unmanned aerial vehicles (UAVs) or unmanned aircraft systems. Essentially, a drone
is a flying robot that can be remotely controlled or fly autonomously using software-controlled flight
plans in its embedded systems that work in conjunction with onboard sensors and a global positioning
system (GPS). 1 Drones are commonly recognized for their utility in warfare or as mere toys for children.
However, the scope of drone applications has expanded significantly, reaching the realm of aviation
business 2. Drones now serve diverse purposes, including the delivery of packages to customers and
supporting government surveillance operations. This evolution has brought about a greater freedom in
the sale of drones. However, drone sales differ significantly from the sale of conventional products. The
classification of drones becomes imperative, taking into account their specific attributes such as form,
size, and type of engine utilized. This classification is necessary due to the fact that drones operate in
the airspace, potentially causing disruptions to air traffic or encroaching upon the airspace of other
regions. As a result, the sale and purchase of drones necessitate careful consideration of relevant
regulations. When engaging in the sale of drones, it is crucial to understand and adhere to the applicable
regulatory framework.
* Faculty of Law Universitas Padjadjaran, Jl. Dipati Ukur 35 Bandung, email: chelsea21003@mail.unpad.ac.id
1 Drone, Ben lutkevich”
2 Trevir I Nath, “How Drones Are Changing the Business World”
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, 6/11/24, 8:37 PM 1376-Article Text-7266-1-10-20240118
112 TRANSNATIONAL BUSINESS LAW JOURNAL
Volume 3, Number 2, August 2022
Drones have rapidly evolved into sophisticated devices with multifaceted functionalities,
including aerial photography, surveillance, and product delivery. Nevertheless, the legal landscape
surrounding drone sales remains fragmented, with different countries adopting varied definitions and
regulations. National aviation laws often classify drones as aircraft, subjecting their sales to an array of
requirements and restrictions. This legal inconsistency creates a challenging environment for businesses
engaged in cross-border trade, hindering the development and growth of the drone industry.
Furthermore, the sale of drones raises important concerns regarding airspace management and national
security. Drones have the potential to access sensitive areas or interfere with the movement of manned
aircraft. Therefore, regulations governing drone sales often incorporate provisions aimed at
safeguarding airspace integrity and national defense interests. By implementing strict guidelines and
permitting procedures, authorities can mitigate risks associated with unauthorized drone operations and
protect the privacy and security of individuals and organizations. Another use for drones isn’t in the sky
at all. Some organizations are using ground-based and indoor drones to map their facilities. Drones take
pictures or lidar images throughout the facilities, and then GIS technology creates maps and floor plans
that give employees a common view of the workplace or industrial environment. By combining those
maps with data from IoT devices like smartphones or sensors, companies can do advanced routing and
analytics on the indoor environment, including patterns of movement, assets, and infrastructure. It’s a
whole new frontier for companies in many industries. 3
In the realm of international commercial transactions, the CISG presents a promising solution for
harmonizing the sales of goods, including drones. The CISG, ratified by a significant number of
countries, provides a standardized legal framework that facilitates international trade. However, the
applicability of the CISG to drone sales remains subject to interpretation, as drones possess unique
characteristics that necessitate tailored legal considerations. From a legal standpoint, the inclusion of
drones within the ambit of the CISG is crucial to establish clarity and consistency in international drone
sales. This would enable businesses involved in the global drone trade to benefit from the uniform rules
and regulations outlined in the convention. Moreover, by aligning the legal treatment of drone sales,
international cooperation can be fostered, market accessibility enhanced, and innovation encouraged
within the industry. Implementing the CISG as a governing instrument for drone sales would
significantly reduce uncertainties and legal complexities associated with cross-border transactions.
One of the primary challenges in applying the CISG to drone sales lies in reconciling the
convention's provisions with the unique aspects of drone technology. Drones are characterized by their
remote operation, autonomous capabilities, and diverse applications. Therefore, adapting the existing
rules of the CISG to accommodate the specific requirements and risks associated with drones becomes
imperative. Issues such as liability for damages, warranties, and the seller's obligations may need to be
tailored to suit the nature of drone transactions. Furthermore, the applicability of the CISG to drone
sales raises questions regarding the interpretation and application of its provisions in the context of
emerging technologies. As the drone industry continues to evolve at a rapid pace, legal practitioners
and scholars must grapple with the complexities arising from the interplay between traditional legal
principles and innovative drone applications. This necessitates a nuanced understanding of the CISG's
provisions and their potential adaptation to address the unique challenges posed by drone sales.
The adoption of a comprehensive legal instrument like the CISG for drone sales not only ensures
consistency in cross-border transactions but also strengthens legal certainty. Parties engaged in
international trade can rely on the established legal principles and rules of the CISG to resolve disputes
3 Chris Chiappinelli “Think Tank: Defining the Business Case for Drones”
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