1. Chapter 5
Legal Environment

2. Chapter Outline Multiplicity of Legal Environments Legal Systems
Jurisdiction and Extraterritoriality
Legal Form of Organization
Branch vs. Subsidiary
Litigation vs. Arbitration

3. Chapter Outline Bribery - Legal Dimension - Ethical Dimension
Intellectual Property
- Categories of Intellectual Property
- Legal Rights and Requirements

4. Legal Systems Common law system Statute law system
Relying on precedents and conventions
E.g., USA, UK, Canada, India
Statute law system
Code or civil law system
Main rules of law embodied in legislative codes
Japan and most continental European countries

5. Jurisdiction territorial range of authority
a court's legal power to hear a case

6. Extraterritoriality
a country's or court's application of national laws beyond its border
E.g., USA and Foreign Corrupt Practices Act
E.g., Belgium’s universal jurisdiction

7. How to Settle Commercial Disputes
Negotiation
Arbitration
Litigation

8. Bribery: Legal Dimension
Foreign Corrupt Practices Act (FCPA)
OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

9. Foreign Corrupt Practices Act (FCPA)
Bribery is "the use of interstate commerce to offer, pay, promise to pay, or authorize giving anything of value to influence an act or decision by a foreign government, politician, or political party to assist in obtaining, retaining, or directing business to any person."
Types of Payment
- Permissible: expediting payments to low-level officials who exercise only "ministerial" or "clerical" functions
- Illegal: payments to an official exercising discretionary authority

10. Bribery: Ethical Dimension
Morality as a function of culture
Corporate strategies
Codes of conduct
Sensitization of ethics in managers through training and education
Ethics audit

11. Transparency International
Corruption Perceptions Index (CPI)
Bribe Payers Index (BPI)

12. Intellectual Property
"creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce"
Trademark
Copyright
Patent
Functional patent
Design patent
Trade Secret

13. Intellectual Property
Trademark
- symbol, word, or thing used to identify a product made or marketed by a particular firm
Copyright
- protection given to an author or artist for literary, musical, dramatic, and artistic works
Patent
- invention of a scientific or technical nature
Trade secret
- know-how that is kept secret within a particular business
- e.g., manufacturing methods, formulas, plans