Civil vs. Common Law Civil Law Common Law • Most industrial nations • U.S., Canada, UK • Comprehensive code • Case precedents • Clear, but often rigid • Confusing, flexible • EU  subsidiarity • US  expanded Federal law • Judges important • Lawyers important • Corruption a problem • Over-litigation

Goals of Legal Systems The state = socialist law Order and justice = common law & civil law Religious authorities = Islamic law  

U.S. & International Law Unilateralism – Section 301, FCPA   Unilateralism – Section 301, FCPA Bilateralism – Country to Country, tax Regionalism – NAFTA, EU, APEC Multilateralism – UN, NATO, WTO        

U.S. & International Law Unilateralism Section 301 law on trade           Unilateralism   Section 301 law on trade Foreign Corrupt Practices Act Anti-trust laws        

U.S. & International Law Bilateralism BIT and FCN treaties   BIT and FCN treaties Country to country negotiations Tax treaties

U.S. & International Law         Regionalism   NAFTA APEC Tax treaties

U.S. & International Law Multilateralism UN WTO/GATT   UN WTO/GATT conventions, treaties, protocols, agreements

Extraterritoriality - U.S. Laws Extension of U.S. bribery Laws   F.C.P.A. Bribery vs. grease payments Use of intermediaries (“consultants”) Need for accounting Corruption in the world

Extraterritoriality - U.S. Laws Extension of political interests  Boycotts Protection: consumers, investors, exporters   Focus on anti-competitive practices abroad Foreign blocking laws

Extraterritoriality - U.S. Laws Extension of political interests  Boycotts Arab League U.S.: -Helms-Burton Law Iran/Libya Sanctions Act   Impact of boycotts (and reactions ) Protection: consumers, investors, exporters  Focus on anti-competitive practices abroad Foreign blocking laws

Extension of U.S. Trade Laws Why? force open foreign markets   protect domestic firms from low-priced imports    How?   Section 301 to lower trade barriers   Countervailing Duty Law to end export subsidies   U.S. Antidumping laws to hinder home country price fixing

Extension of U.S. Trade Laws Results?   Some markets opened Retaliatory antidumping laws

U.S. Antidumping Law Prohibits predatory pricing of imports   pricing of imports which is “unfair” or not at “normal value”: - lower than cost - lower than price at home - lower than normal profit  Goal: keep imports from being price competitive  

U.S. Antidumping Law Impact:   U.S. consumers hurt, producers helped a little Non-accused imports increase Countries establish their own laws

Intellectual Property Rights Copyright Berne Convention: copyright protection Uniform Copyright Convention: use of © to gain worldwide protection

Intellectual Property Rights Patents Patent Cooperation Treaty: single international patent application    Paris Convention: patent protection

Intellectual Property Rights Issues U.S. first-to-invent vs. world first-to-file system WTO TRIPS accord   - national treatment - 50 year copyrights - trademark protection for well known marks - 20 year patent protection - trade secret protection

International Law Employment Models Employment at Will Indefinite Employment  • Common in U.S. • Common in EU, Japan, other countries NB US employment laws are primarily determined by each state

International Law Employment Models • Economic, arm’s length • Economic and social relationship between relationship, focus employer and employee on long-term    • Quit and fire at will • Hard to fire easily  • No severance pay • Often large severance required  • Individual contracts or • Worker agreements union agreements common common

International Dispute Resolution        Between countries   • Negotiation • Obey treaties and conventions • Use force      Trade disputes   • WTO dispute panel • Explosion of complaints

International Dispute Resolution      Private party disputes   litigation-forum shopping, choice of law clause mediation/conciliation Arbitration( binding or not)

International Dispute Resolution             Enforcement of judgments   No requirements beyond borders for enforcement of litigation Arbitral awards are enforced