Its Legal, Ethical & Global Environment 6 th Ed. Its Legal, Ethical & Global Environment 6 th Ed. B U S I N E S S MARIANNE M. JENNINGS Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. Chapter 7 International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 2 Sources of International Law  Common Law England United States  Civil or Code Law Statutes or codes are very detailed; little reliance on precedent France, Germany, Spain  Common Law England United States  Civil or Code Law Statutes or codes are very detailed; little reliance on precedent France, Germany, Spain

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 3  Islamic Law Religious tenets integrated Combination of Islamic law and colonizers’ laws  Former Communist countries In Transition  Islamic Law Religious tenets integrated Combination of Islamic law and colonizers’ laws  Former Communist countries In Transition Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 4 LLanguage EEnvironment & Technology SSocial Organization CContexting AAuthority NNonverbal Behavior TTime Concept LLanguage EEnvironment & Technology SSocial Organization CContexting AAuthority NNonverbal Behavior TTime Concept Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 5  Contracts for the International Sale of Goods (CISG) Governs the sale of goods internationally Currently adopted by 53 countries, including the United States Similar to Article 2 of the Uniform Commercial Code  Contracts for the International Sale of Goods (CISG) Governs the sale of goods internationally Currently adopted by 53 countries, including the United States Similar to Article 2 of the Uniform Commercial Code Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 6  International Monetary Fund (IMF) and the World Bank The IMF is designed to foster International trade through currency stability. The IMF creates the International Bank for Reconstruction and Development (The World Bank) which allows members to draw on line of credit to stabilizes currency exchange rates  International Monetary Fund (IMF) and the World Bank The IMF is designed to foster International trade through currency stability. The IMF creates the International Bank for Reconstruction and Development (The World Bank) which allows members to draw on line of credit to stabilizes currency exchange rates Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 7  Treaties General Agreement on Tariffs and Trade (GATT) Multilateral treaty with 125 member nations that created the Work Trade Organization (WTO)  European Union (EU) Created by treaty of Rome Set as major goal unified monetary and fiscal policies and the creation of the Euro Dollar  Treaties General Agreement on Tariffs and Trade (GATT) Multilateral treaty with 125 member nations that created the Work Trade Organization (WTO)  European Union (EU) Created by treaty of Rome Set as major goal unified monetary and fiscal policies and the creation of the Euro Dollar Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 8  North American Free Trade Agreement (NAFTA) Became effective in 1994 Treaty between Canada, Mexico and the United States Set to eliminate all Act tariffs between member countries with 15 years  North American Free Trade Agreement (NAFTA) Became effective in 1994 Treaty between Canada, Mexico and the United States Set to eliminate all Act tariffs between member countries with 15 years Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 9  Case 7.1 U.S. v. Liebo (1991) Defendant worked for NAPCO. Contracted with Nigerian government. Offered gifts to public officials. Was there a violation of the Federal Corrupt Practices Act?  Case 7.1 U.S. v. Liebo (1991) Defendant worked for NAPCO. Contracted with Nigerian government. Offered gifts to public officials. Was there a violation of the Federal Corrupt Practices Act? Sources of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 10 Principles of International Law  Sovereign Immunity Each nation is sovereign Other nations do not take jurisdiction over a country’s internal operations, laws, and people Does not apply to contractual relations  Expropriation: Act of State Doctrine Act of foreign governments are recognized as valid whether or not such actions would be legal in the United States  Sovereign Immunity Each nation is sovereign Other nations do not take jurisdiction over a country’s internal operations, laws, and people Does not apply to contractual relations  Expropriation: Act of State Doctrine Act of foreign governments are recognized as valid whether or not such actions would be legal in the United States

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 11 Principles of International Law  Case 7.2 Riedel v. Bancam (1986) What are the bases for his suit against Bancam in Ohio? Does Mexico have sovereign immunity for its expropriation of the bank?  Case 7.2 Riedel v. Bancam (1986) What are the bases for his suit against Bancam in Ohio? Does Mexico have sovereign immunity for its expropriation of the bank?

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 12 Principles of International Law  Protections for U.S. Property and Investment Abroad Hickenlooper Amendment to Foreign Assistance Act of 1962 Allows president to sanction countries that take property of U.S. companies Treaties afford protections Overseas Private Investment Corporation (OPIC) is federal agency that provides insurance for U.S. businesses against expropriation  Protections for U.S. Property and Investment Abroad Hickenlooper Amendment to Foreign Assistance Act of 1962 Allows president to sanction countries that take property of U.S. companies Treaties afford protections Overseas Private Investment Corporation (OPIC) is federal agency that provides insurance for U.S. businesses against expropriation

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 13 Principles of International Law  Repatriation Limits on removal of profits from country where they are earned Considered acts of state; cannot be litigated  Forum Non Conveniens Dismisses cases brought in wrong court Example: India was proper forum to bring suit against Union Carbide for what happened in Bhopal, India  Repatriation Limits on removal of profits from country where they are earned Considered acts of state; cannot be litigated  Forum Non Conveniens Dismisses cases brought in wrong court Example: India was proper forum to bring suit against Union Carbide for what happened in Bhopal, India

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 14 Principles of International Law  Case 7.3 Carnival Cruise Lines v. Shute (1991) Shute was injured while the ship was in international waters. She filed suit in her home state of Washington. Court affirmed dismissal of the case because the tickets had Florida as the forum.  Case 7.3 Carnival Cruise Lines v. Shute (1991) Shute was injured while the ship was in international waters. She filed suit in her home state of Washington. Court affirmed dismissal of the case because the tickets had Florida as the forum.

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 15  Conflicts of Law No two countries have the exact same commercial laws Some countries have no commercial codes Uniform Commercial Code is widely used  Resolving Conflicts of Law If the parties agree, autonomy controls If parties have not agreed, law of country where the contract is performed will apply  Conflicts of Law No two countries have the exact same commercial laws Some countries have no commercial codes Uniform Commercial Code is widely used  Resolving Conflicts of Law If the parties agree, autonomy controls If parties have not agreed, law of country where the contract is performed will apply Principles of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 16  Antitrust Laws All firms doing business here are subject to antitrust jurisdiction Export Trading Company Act Allows joint ventures among competitors For business in other countries  Antitrust Laws All firms doing business here are subject to antitrust jurisdiction Export Trading Company Act Allows joint ventures among competitors For business in other countries Principles of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 17  Protections for Intellectual Property International Protections of Intellectual property are constantly being refined Worldwide registration of patents, trademarks and Copyrights may be within reach  Protections for Intellectual Property International Protections of Intellectual property are constantly being refined Worldwide registration of patents, trademarks and Copyrights may be within reach Principles of International Law

Copyright ©2003 by West Legal Studies in Business, a division of Thomson Learning. All rights reserved. 18  Criminal Law Protections All those present in a country are subject to that country’s criminal law Subject to all regulations as well  Criminal Law Protections All those present in a country are subject to that country’s criminal law Subject to all regulations as well Principles of International Law