International Law Types of law systems –Common law –Code law –Islamic law –Communism Definition: –Treaties, customs, recognized principles when one country

International Law

• Types of law systems– Common law– Code law– Islamic law– Communism

• Definition:– Treaties, customs, recognized principles when one

country deals with another– Bilateral– Multilateral

LESCANT Factors

• Language

• Environment & Technology

• Social organization

• Contexting

• Authority

• Nonverbal behavior

• Time Concept

Contracts for the International Sale of Goods

• 1980

• Adopted in 53 countries, including U.S.

• Similar to UCC

Treaties and International Trade Organizations

• WTO/GATT– Outlaws tariff discrimination– Most favored nation status– Outlaws nontariff barriers– Caps tariffs


• UNCITRAL– United Nations Commission on International

Trade Law– 36 countries– Proposes ‘model laws’ for uniformity


• EU– European Commission

• Education• Health• Culture• Consumer protection

– Council of Ministers– European Parliament– Court of Justice– Euro– Antitrust laws similar to Sherman Act


• NAFTA– All tariffs to be eliminated in 15 years

• Can be “snapped back” if US is overrun with imports or imports cause harm

• Duty free if 100% North American origin

– Environment• Left to each nation if not arbitrary or unjustifiably

discriminatory• Regulations must be “necessary” to protect life• Regulations must be based on “scientific principles”• No mention of genetic engineering


• U.S. International Trade Commission– 6 appointed commissioners with 9 year terms– Advises president on preferences (lower tariffs)– Industries petition ITC– Import interference with agricultural programs– Keeps track of unit labor costs by country– Special 301

• International theft of U.S. intellectual property• Identifies “priority foreign countries”• May impose sanctions

International Courts

• No real enforcement

• International Court of Justice (World Court)– Established by UN– Nation v. Nation– Voluntary agreement to have case heard– Not bound by the decisions– Not for business disputes


• European Court of Justice– Enforces EU law– Member nations, EU institutions, other parties

& businesses v. member nations– Enforcement by national courts


• WTO dispute resolution– Trade disputes between member nations– May order retaliatory trade sanctions

International Arbitration

• Organizations– American Arbitration Association– International Chamber of Commerce– UN Commission on International Trade Law

• Arbitrator issues award– No enforcement power

• Enforcement only if:– Nation is signatory of UN Convention on the

Recognition and Enforcement of Foreign Arbitral Awards

International Law Principles

• Sovereign immunity– Equality of countries– Each country sovereign nation– No country subject to another’s laws without

consent– International commercial transactions are

voluntary – subjects country’s government to civil suits


• Expropriation– Act of State Doctrine– Recognizes as valid acts by other nations even

if illegal in US– Usually challenged when private property is

nationalized


• Protections of US property– Foreign Assistance Act of 1962 – Hickenlooper

amendment• President can punish nations that expropriate private US

property• Actual expropriation• Effective expropriation

– Clauses in trade treaties– Overseas Private Investment Corporation (OPIC)

• Federal insurer – premiums based on risk• Countries where per capita income is $250 or less • Confiscation, insurrection, repatriation, war, revolution


• Repatriation– Some nations limit repatriation– Acts of state

• Forum non conveniens– Cases must be brought under the correct

jurisdiction

Conflicts of Law

• No 2 countries have the same laws

• The parties may choose which law applies

• By default, the laws of the country of contract performance apply

Protections in International Competition

• Antitrust laws– US Law

• All US firms• All firms operating in the US• Firms whose business has substantial impact on US

trade• Who can sue

– U.S. & foreign governments– U.S. & foreign businesses– Any other injured party


• Export Trading Company Act of 1982– Allows Jvs between competitors when outside

the US– Must show the firm will not:

• Substantially lessen competition or restrain trade in the U.S. or restrain export trade of a competitor

• Cause unfair competition• Affect the price of goods/services in the U.S.• Resell the exported goods in the U.S.


• Helms-Burton Act– 1996– Punishment for firms that use confiscated U.S.

property• Executives and families may not enter U.S.

• Allows suits against those companies

• Targeted at Cuba


• Intellectual Property– International agreements being negotiated

– Gray Market goods• Goods with U.S. intellectual property protection are are

foreign made & imported without consent of U.S.trademark holder

– Outlawed by U.S. Customs Service

• Criminal Law– Individuals and businesses are subject to host country’s

criminal law

Foreign Corrupt Practices Act

• Applies to all businesses registered under SEC• Illegal to use mails or interstate commerce for bribes• Shareholders, officers, directors

– 5 years in prison– $100,000 fine

• Business penalty – up to $2 million• Exceptions

– Grease payments– Bribes to non-government foreigners– Extortion payments– Payments that are legal within he host country

Documents

International Law Types of law systems –Common law –Code law –Islamic law –Communism Definition: –Treaties, customs, recognized principles when one country