1. Chapter 7 International Law
Marianne M. Jennings
Business
Its Legal, Ethical, and Global Environment
10th Ed.
Chapter 7 International Law

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

3. Sources of International Law
Islamic Law
Religious tenets integrated
Combination of Islamic law and colonizers’ laws
Former Communist Countries
In Transition

4. Sources of International Law
L Language
E Environment & Technology
S Social Organization
C Contexting
A Authority
N Nonverbal Behavior
T Time Concept

5. Sources of International Law
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

6. Sources of International Law
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 150 member nations that created the Work Trade Organization (WTO)

7. Sources of International Law
North American Free Trade Agreement (NAFTA)
Became effective in 1994
Treaty between Canada, Mexico and the United States
Eliminated most tariffs between member countries with 15 years

8. Sources of International Law
Prohibition on Trade: Individual Nation Sanctions
International Monetary Fund
The Kyoto Treaty
OPEC

9. Sources of International Law
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.

10. Trust, Corruption, Trade, and Economics
Focus on Reducing Bribery
OECD
FCPA

11. Foreign Corrupt Practices Act
Applies to all 1934 Act companies
Making, authorizing, promising payments or gifts of money or anything of value with intent to corrupt
Applies to gifts to government officials, parties, candidates, NGOs and anyone who transmits money to these persons/entities

12. FCPA Grease or facilitation payments under FCPA
Securing a permit or license
Obtaining paper processing
Securing police protection
Providing phone, water or power services

13. FCPA Use of agents Companies need to screen
Follow “four eyes” rule – two people must sign off on payments

14. Principles Expropriation: Act of State Doctrine Sovereign Immunity
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

15. Case 7.1
Case 7.1 U.S. v. Giffen (2004)
Business owner made payments to government officials and received contracts
Business owner then given a government official
Can you claim sovereign immunity from FCPA violations if you are made a government official?

16. Principles of International Law
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) - federal agency that provides insurance for U.S. businesses against expropriation

17. Repatriation Repatriation Forum Non Conveniens
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

18. Checklist for Doing Business In Another Country
What is the economic climate?
What is the government structure?
What are the cultural attitudes about economic development?
What are the feelings of the indigenous peoples toward U.S. businesses?
What is the legal structure of the country?
How are laws passed?
How are disputes resolved?
What is the structure of the court system?
What commercial laws do they have?
What have been the experiences of other companies working there?

19. Conflicts of Law Conflicts of Law Resolving 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

20. Case 7.2 Case 7.2 Tiffany and Company v. Andrew (2012)
What is the impact of counterfeiting?
How can banks help in preventing counterfeiting?

21. International Protections
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

22. International Protections
Protections for Intellectual Property
International protections of intellectual property are constantly being refined
Worldwide registration of patents, trademarks and copyrights may be within reach

23. International Protections
Criminal Law Protections
All those present in a country are subject to that country’s criminal law
Subject to all regulations as well