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

2. 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

3. 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

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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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