Final answer:
The correct answer is B: The CISG is applied by default when both nations are members unless the contract specifies otherwise. The CISG allows contractual freedom and does not necessarily disadvantage U.S. buyers or replace the UCC as the worldwide governing law.
Step-by-step explanation:
The correct answer to the student's question is B. The United Nations Convention for the International Sale of Goods (CISG) is automatically applied if both nations have adopted the CISG, unless another body of law is agreed upon in the contract. Thus, the CISG serves as a default rule of law for international sales contracts when both parties are from member states that have ratified the CISG, but parties to a contract can choose to opt out of its provisions in favor of a different governing law.
It is important to note that the CISG does not replace the Uniform Commercial Code (UCC) as the global law governing international trade, representing option C as incorrect. Option D, suggesting that the CISG should always be the preference for a buyer from the United States, is not necessarily true as the preference depends on the specific circumstances of the transaction. Lastly, option E, that the CISG always puts the United States buyer at a disadvantage, is incorrect and misrepresents the neutral purpose of the CISG to facilitate fair international trade.