International Law for Business Arvind Ashta Course presented at American Business School, Paris Based on: Carolyn Hotchkiss’s book International Law: A. Ashta

International Law: A. Ashta Summary Introduction National Law Public International Law Limits on National Power International Organizations Private International Law Conclusion International Law: A. Ashta

International Law: A. Ashta Introduction National Law: Domestic Other country International Law Public Private International Institutions Virginian Importer or Shop Goods Italian Exporter Money American defaults: Italian court ruling: Enforceable in US? US Customs Duty Goods defective: US law or Italian law? Italian Sale Contract UN Convention on Sale of Goods GATT International Law: A. Ashta

International Law: A. Ashta National Law in US Federal Law Presidential Power Congress Power State Law International Law: A. Ashta

US v. Curtiss-Wright Export Corp. Treaties Sovereign Power for treaties: Federal Level Treaty negotiation: President Treaty ratification: Congress Not delegated power: plenary President can keep secret information President and Congress may delegate: example international commerce Main regulators:Department of State, Defence and Commerce International Law: A. Ashta

Public International Law Deals with War and Peace Human rights Territorial rights How nations treat each others How nations treat others’ nationals Succession of governments International Law: A. Ashta

Examples of succession French bank lends to USSR, which breaks up into many Republics. Who has to pay the French? Time and need to borrow may solve the problem USSR refuses Czar debt (recognizes it in 1980) Enron: one State grants subsidies. Next government stops them! International Law: A. Ashta

Sources of Public International Law Treaties International Agreements Customs General Principles Problem: who will enforce? International Law: A. Ashta

International Law: A. Ashta Treaties International organizations UN, EU, NAFTA, UN convention on International Sale of Goods Contract between sovereigns Bilateral, Multilateral Need for ratification Congress Referendum (Danes vote No to Maastricht) Delegation: Congress power over international commerce Delegated to President for Agreements Agreements don’t need to be ratified International Law: A. Ashta

Limits on National Power Nationality of individuals Right to protect nationals abroad Acquisition: birth, parent, migration Nationality of MNCs Shareholders, employees, directors Registered office Most significant contracts International Law: A. Ashta

Barcelona Traction case Canada Incorporation Spanish government files for bankruptcy Belgium tries to intervene ICJ: place of incorporation (and not majority shareholders) Belgian Majority Shareholders Subsidiaries in Spain International Law: A. Ashta

International Law: A. Ashta Jurisdiction Power over subject matter Power over those involved Persons Domicile Nationality (French nationals living abroad) Companies Centre of business activities Place of incorporation Where Property is situated International Law: A. Ashta

Exterritorial Jurisdiction Over nationals living abroad Over foreigners with activities inside Any nation which catches a person Slave trading Piracy (not air) Crime against humanity (not genocide, nor torture) International Law: A. Ashta

International Organizations United Nations 1945 Most nations ICJ UN Commission on International Trade Law Unifies several areas of commercial law Example: UN Convention on sale of Goods International Law: A. Ashta

Economic Organizations IMF Stability of currencies Worldwide central bank Conditionalities to loans World Bank Loans to developing countries Infrastructure projects GATT and WTO GATT was not ratified by US Senate Therefore Agreement and not Treaty International Law: A. Ashta

Regional Organizations Increase Trade EU can refuse a merger between two US companies! Increase security OAS, ASEAN With time both trade and security International Law: A. Ashta

Private International Law Deals with Effects of other nation’s law on its own courts Examples Us seller and Japanese buyer: whose law? Swedish court: will it enforce an American judgment International Law: A. Ashta

International Law: A. Ashta Hilton v. Guyot Comity absolute obligation  courtesy or goodwill = recognition within its territory of law of others, due regard to International duty and convenience Rights of own citizens France does not enforce others’ judgment without looking at merits Reciprocity means we can also look at merits and are not bound by comity US French French Court: wins US court For enforcing International Law: A. Ashta

Conflicts of Laws: How to resolve? Different States use different techniques Territoriality Place of property Place where tort occurred Place where contract signed or performed Most significant contacts Centre of gravity approach Interest Analysis The Better Rule International Law: A. Ashta

International Law: A. Ashta Babcok v. Jackson Facts: 2 Americans in Ontario Car Accident due to negligence Passenger sues driver US Court Not place of tort: only incidental Place of contract: for execution, interpretation and validity Place of performance: for performance Grouping of contacts or Centre of Gravity Find out the most important place US guest, US host, US car, US garage NB for contracts Best is to state which law is applicable Usually courts will apply this. International Law: A. Ashta

Enforcement of foreign judgments US Federal courts: Federal or state law? US State courts: Own or other States’ law? Different courts: Enforce or not enforce foreign decisions 17 States have agreed to Uniform Foreign Money Judgments Recognition Act (1962). Will not look for reciprocity Exception: Fraud, defectuos decree International Law: A. Ashta

Bank of Montreal v. Kough Facts US citizen received notice Did not appear Lost California had signed Uniform Foreign Money Judgments Recognition Act So: California enforced the action However, more difficulties in Criminal Law and Taxation Reciprocity required International Law: A. Ashta