Status Quo Bias, CISG and the future of the Common European Sales Law

Abstract

Common European Sales Law (“CESL”) is not the first legal instrument directed at the formation of a uniform legal regime applicable to international commercial sales. N ot surprisingly its scope overlaps with the scope of the already existing United Nations Convention on Contracts for the International Sale of Goods (“CISG”), which is the default cross-border sales law regime in 23 European Union member states that have adopted the Convention. Unlike the CISG, the CESL has acknowledged an “opt-in” mechanism. However the studies show that when they can choose among alternatives, individuals prefer to leave things as they are. The author argues that status quo bias is a huge barrier in front of the CESL’s future success.