[For more current case annotated texts by this author, see Bernstein & Lookofsky, Understanding the CISG in Europe, 2d ed. (2003) and Lookofsky, Understanding the CISG in the USA, 2d ed. (2004).]
329. In most States operating under a 'federal' system, the central government is empowered with the treaty-making power to bind the entire federation to the CISG. The effect of the United States ratification, for example, is to bind all 50 'territorial units' (states) within the US.
In a few States, such as Australia and Canada, the federal government does not have this power. Article 93 permits such States, upon ratification, to declare that the CISG is to extend to only some, but not all of its territorial units. In such event, even if the place of business of a party is located in that State, this place of business is considered not to be 'in' a Contracting State unless it is in a territorial unit to which the Convention extends.