Probably a permanent establishment, even under the older authority-to-conclude wording: AC566's Unit 9 treaty analysis reads Article 5 against a director who negotiates but never signs. Searches like "ac 566 unit 9 assignment example", "ac566 unit 9 sample" and "ac566 unit 9 example" land here.
What a finished AC566 Unit 9 treaty analysis looks like
Four pages: facts, the article, the strain, the conclusion and its consequences. The facts give the director's role, [210] days a year in the United States, a home office the company reimburses, and [$4,200,000] of annual US sales she negotiated, every one signed abroad without change. The article section quotes the composite treaty's dependent agent clause, modeled on the older wording that asks whether a person habitually exercises authority to conclude contracts in the enterprise's name. The strain section sets that text beside the pre-2017 OECD Commentary, which treated negotiating all elements of a contract as exercising the authority even when someone else signs, and beside the 2017 revision to a principal role standard. The conclusion finds a likely permanent establishment and attributes profits to it under Article 7.
How a AC566 Unit 9 example is structured
The analysis runs from domestic law to treaty to consequence, since the treaty matters only once the United States would otherwise tax. Domestic law comes first in a paragraph: regular sales activity through an employee in the country amounts to a US trade or business under Section 864(b), with effectively connected income following. The treaty then sets a higher threshold, and Article 5 is read in layers: the fixed place test, where the reimbursed home office raises its own question; the preparatory or auxiliary exception, rejected because selling is the core business; and the dependent agent clause, where the strain lives. The commentary is used as interpretive guidance, with a sentence on its status in US practice. The conclusion states a confidence level. Consequences follow, including the Form 8833 disclosure Section 6114 requires if a return nonetheless claims no establishment.
US law before the treaty
Regular negotiation of US sales by a resident employee creates a trade or business under Section 864(b), so the treaty's higher threshold becomes the real question.
Fixed place, tested and set aside
A reimbursed home office might be at the company's disposal, but the analysis rests its conclusion elsewhere and explains why that point is closer.
Negotiates everything, signs nothing
The dependent agent clause asks about authority to conclude contracts, and the analysis argues that unaltered approval abroad makes the signature a formality.
Commentary as a guide
Pre-2017 commentary and the 2017 principal role revision are both cited, with a note that the composite treaty predates the newer wording.
What follows from an establishment
Business profits attributable to the Chicago activity become taxable in the United States under Article 7, with filing and disclosure consequences stated.
Where marks go in AC566 Unit 9
Reading the article against the facts, clause by clause, is where the treaty analysis earns its marks. A paper that concludes no permanent establishment because nobody signs in the United States has taken the treaty's words at face value and ignored the commentary built to answer that argument. The reverse shortcut, declaring an establishment from the 2017 wording when the composite treaty uses the older text, applies language the parties never agreed to. Skipping domestic law makes the treaty's role invisible. Deductions follow for omitting the preparatory or auxiliary exception and the independent agent carve-out, both of which a complete Article 5 reading addresses. A conclusion that never says how sure it is, or stops before the Article 7 consequences, reads as half the job. Quoting the treaty at length while applying it in a sentence costs analysis credit.
Get a AC566 Unit 9 example written to your instructions
The Unit 9 fact pattern, the treaty or model article assigned, any commentary the prompt names and your rubric are the starting point. The analysis moves from domestic law to the article, tests each clause against the facts, states a confidence level and sets out the consequences. It is finished in 24-48h, with the first sample at no cost.
AC566 Unit 9 questions, answered
Why read commentary if the treaty text is clear?
Because the text is not clear on these facts; authority to conclude contracts could mean the power to sign or the power to settle the terms. Commentary on the model convention is a widely used interpretive aid, and the pre-2017 version addressed exactly this pattern. The example cites it as guidance rather than law and says the conclusion would be weaker if a court declined to follow it.
Does the 2017 wording apply to this treaty?
Not automatically. A treaty's text changes only when the two countries amend it or adopt a multilateral instrument covering it, and the United States did not sign the multilateral instrument. The example treats the composite treaty as keeping the older wording and uses the newer standard only to show how the same facts would be read under it.
What if the director were an independent agent?
Then Article 5 would generally exclude her, provided she acts in the ordinary course of her own business and is legally and economically independent. An employee on salary who works for one company cannot meet that test, and so the example dismisses the carve-out in a paragraph. A prompt recasting her as a commission agent with several principals would require a fuller analysis.