Business Law-

Question 1

Functions of competition agency

Answer 1

The competition Agency was establish based on the “competition law” of Georgia.
-The agency is an independent public law entity, accountable to the Georgian Parliament.
-The main task is to implement competition policy, create conditions to promote development of the competition in Georgia, protect competition, and prevent all forms of anti-competitive agreements and actions.

Question 2

competition Agency Goals

Answer 2

The goals of the agency are as follows:
-To make sure appropriate conditions for the free entry of economic agents into the market and remove administrative, legal, and discriminatory barriers to market entry.
-To protect the principle of equality in the activities of economic agents and prevent unjust limitation of competition.
- To ensure that the decision-making process of the competent authority respects the principles of publicness, objectivity, non-discrimination, and transparency

Question 3

Case:
-Baking soda

Answer 3

The Georgian competition and Consumer Agency completed investigation into Baking soda production sector and established a breach of Article 113(Unfair competition).
-The defendant was fined over 14,600 gel.
-The investigation showed, that the company “Suntrade” violated competition legislation by using similar/ almost identical appearance of competitor’s trademark of packaging for their own product.
-according to the agency’s decision in order to eliminate the infringement of the law, the responding party was directed to bring its act into line with competition legislation.
-asking it to change packaging of one’s own product baking soda to eliminate as much as possible the similarity with a competitors companies, external look and possibility of consumer confusion between the two.

Question 4

• case: Unison aldagi

Answer 4

According to article 113, paragraph one of “competition law of Georgia” unfair competition is prohibited.
-according to paragraph two the same article in economic agents, actions that violate business ethics, and harm the interest of competitors and consumers are considered unfair competition.
-the violation of business ethics was manifested and spreading a false information by Aldagi’s employee which aim to damage the reputation of “unison, insurance company” discredit it, and unjustifiably criticize it.
-the information spread by the employee of “Aldagi insurance company” due to its nature, damages, the competitors reputation, create a false impression about its activities, accompanied by baseless criticism.

Question 5

Post soviet labor law in Georgia

Answer 5

With the collapse of the Soviet Union in 1991, Georgia regained its independence and begin transitioning to a market economy.
-the early years of independence were marked by economic instability, which also affected labor rights.
-in the 90s labor laws in Georgia were weekly enforced and there was a little protection for workers. Unemployment was high, and labor Standards were often disregarded by employees, particularly in the informal sector.
-in the 2000s and 2010s, georgia, undertook various reforms aimed at improving labor conditions and aligning its legal system with international norms. This included joining the international labor organization..

Question 6

International labor organization (ILO) standards

Answer 6

The ILO has been providing technical assistance to Georgia in areas such as occupational health and safety, the rights of workers to organise, and the fight against child labor.
-Labor unions in Georgia in organizing and advocating for workers, right, and the enforcement of labor laws is inconsistent.
-Georgia Labor law system has evolved significantly since the Soviet era from a controlled model to market oriented framework. While labor rights have strengthened in recent years challenges remain particularly with regard to enforcement and in informal labor markets.

Question 7

probation period

Answer 7

A probation period is a specified time at the beginning of an employment contract, during which the employer evaluates the employees performance, skill, an overall fit for the position.
-it is typically between one and six months, depending on the agreement between the employer and employee.
During this period both parties can assess whether they are satisfied with the relationship.
-

Question 8

discrimintation in labor relationships

Answer 8

1) Direct discrimination(individual treated less favorably because of gender race, etc.)
2) indirect discrimination(when employers policies or practices have a disproportionately negative effect of certain groups of people)
3) harassment, unwanted behavior, hostile or intimidating working environment

Question 9

Labor code of Georgia article 11

Answer 9

Exchange of information before concluding employment agreements
1) employer may obtain information about a job candidate that is related to the performance of the job
2) candidate shall inform an employer about any circumstances that may impede performance
3) employers may verify the accuracy of information submitted by job candidates
4) job candidate meet request return of submitted documents if they are not hired
5) employer is not required to justify a decision on refusing to employ a candidate.

Question 10

Overtime

Answer 10

The Georgian lever state that employees are entitled to extra pay for overtime work.
1) this includes work performed:
-beyond the standard 40 hours per week
- public holidays or nonworking days

2) the rate of pay for overtime work is higher than the regular hourly rate and employers are legally required to follow through these rules for overtime pay.

Question 11

Types of legal entities

Answer 11

1) Limited liability non-entrepreneurial legal entity
2) private company
4) non-entrepreneurial legal entities

Question 12

Business Judgment rule

Answer 12

• The business judgment rule is illegal principle to protect corporate directors and officers from personal liability for the decisions they make on the behalf of the company.
• course will generally not question decisions as long as they follow the three criteria:
  1) characters must act with honest intentions, prioritizing interest of the corporation
  2) they should consider relevant information before making a decision. Ensuring they understand the context and implications
  3) the decisions should have a reasonable basis, meaning they are not be irrational,

-we need the business judgment rule to encourage risk taking, support decisive action, minimize his court interference, promote long-term vision.

Question 13

Collateral

Answer 13

is an asset or propety that a borrower offers to lender as security for a loan.
-if the dev fails to pay loan lender has the right to take possession of the collateral.

Question 14

mortgage

Answer 14

A type of bond specifically used to purchase real estate.
-the property itself serves as a collateral for the loan
-if the borrower fails to repeat, the loan can take possession of the property

Why mortgages are used:
1) home buying
2) investment properties
3) Homeowners can refinance existing mortgages, to take advantage of lower interest

Question 15

Surety agreement

Answer 15

is a legal contract in which one party agrees to responsible for the debt or the obligation of another party.
1) example: if the small business takes out loan to expand operations with the owners friends acting as a guarantor. If the business fails and cannot repay the loan, the bank will seek repayment from the friend who may struggle to pay off the debt.

Question 16

Bank Guarantee

Answer 16

a financial promise made by a bank on behalf of a client. It ensures that the bank will cover a specific amount of money if the client fails to meet their contractual obligations.
Example of bank guarantees:
1) construction projects
2) supplier contracts
3) real estate transactions
4) state tenders

Question 17

Income tax

Answer 17

flat income, tax rate of 20% applies to an individual income.

Question 18

Labor code of Georgia article 1

Answer 18

The law regulates labor in the territory of Georgia
1) Labor agreement may not establish norms different from those provided for by this law that worsen the conditions of employees.

Question 19

Labor code of Georgia article 2

Answer 19

Labor relations
1) compromise the performance of work by an employee for an employer under organized labor conditions in exchange for pay
2) shall derive from agreements reached as a result of free expression and equality of parties
3) shall prohibit any sort of discrimination on gender, race, etc.

Question 20

Labor code of Georgia article 4

Answer 20

Prohibition of labor discrimination
1) discrimination of a person due to race, skin color,, ethnic, or social affiliation, age or gender with the purpose of denying equal opportunities is direct discrimination person is treated less favorably than another is
2) indirect discrimination, neutral criterion would put persons at a disadvantage compared with other people.
3) employers shall ensure equal pay both female and male employees for equal work performed.
4) any type of harassment in the workplace is a form of discrimination and shall be prohibited
5) it is prohibited to fire or treat an employee in a negative manner because an employee has filed a complaint in order to protect themselves from discrimination.

Question 21

Labor code of Georgia article 7

Answer 21

Burden of proof
- a legal standard that requires parties to provide evidence to demonstrate that a claim is valid
-in an event of dispute relating to prohibition of discrimination, where employee states that employer has violated the probation against discrimination shall provide evidence.

Question 22

Labor code of Georgia article 10

Answer 22

Legal capacity to enter employment agreements
1) legal capacity to enter employment agreement is from the age of 16
2) anyone under the age of 16 to enter employment agreement shall receive consent from legal guardian
3) employment with work in gambling, nightclubs, and toxic substances is prohibited
4) employee agreements for performing hazardous work shall not be concluded with minors, and pregnant woman
5) employment agreement with those under 14 may be concluded solely for performance of activities and fields like sports, art and culture

Question 23

Labor code of Georgia article 12

Answer 23

Conclusion of employment agreements:
1) employment agreement may be oral or written
2) agreement shall be concluded in writing if labor relations last longer than one month
3) when the duration of employment agreement is one year or longer, the agreement shall only be concluded for a fixed term.
4) employer shall inform employee for fixed terms of available vacancies so that they have an equal opportunity to hold positions under open, ended employment agreements

Question 24

Labor code of Georgia article 14

Answer 24

Content of employment agreements
1) working time
2) duration of labor relations
3) place of work
4) the type and description of work to be performed
5) procedure for compensating overtime work
6) duration of paid and unpaid leave
7) procedure for termination of labor, relations, employer, and employee
8) employers shall issue a certificate of employment
9) indication of salary

Question 25

Labor code of Georgia article 27

Answer 25

1) total overtime work performed. My minors shall not exceed two hours per day, and four hours per working week 2) overtime work shall be paid for at an increased hourly rate of remuneration 3)An employee shall be granted an additional rest period not later than 4 weeks after the work has been performed, 4) An employer shall notify an employee of overtime work to be performed 1 week prior to such work, 5)without overtime pay, to prevent natural disasters and eliminate their consequences 6)Employing pregnant women,persons with disabilities, minors to work overtime without their consent shall be prohibited.

Question 26

Mediation

Answer 26

1) Voluntary and Non-Binding: mediation is completely voluntary meaning parties are not required to agree to do anything. It is also non-binding, meaning that any agreements made during mediation are not legally required unless both parties choose to sign them. 2) right to go to court: the parties do not agree with the outcome of mediation they can take their case to court at any time. What is said during Mediation cannot be used against any contract. 3) private sessions: mediator may meet with the party separately or together. If the mediator meets with party privately, the information shared will stay confidential, unless the party agrees to share it with the other party. 4) freedom to choose if the parties do not reach in agreement in mediation they're free to go to court and pursue their case in a formal legal setting

Question 27

Mediators role

Answer 27

-The mediator is neutral meaning they do not side. -They are to help both parties communicate and explore solutions;. -the mediator is not required to follow any agreements made by the parties

Question 28

Court System in Georgia

Answer 28

-constitutional court of Georgia -supreme Court of Georgia - Appellate courts -Magistrate Courts

Question 29

Arbitration

Answer 29

Arbitration is commonly used to resolve civil law disputes, usually in industries like banking and insurance. -Many contracts include a arbitration clause The clause allows the parties to resolve disputes outside of the regular court system, through arbitration, a private process where the parties appoint 1 or more arbitrators to decide case. -In some International contract, where foreign parties are involved there is a preference for arbitration outside the parties home country.

Question 30

case: Oncology medication

Answer 30

The national competition agency of Georgia determined a violation of article 7(agreed action) of Georgian competition law by four companies within the framework of the state funding program for oncology medication's. According to the decision of the national competition agency was found that between 2021 and 2023 the four companies (Aversi, Gefa, PSP, and Mermisi) had agreed on fixed prices for oncology medication's under the state funding program. -as a result, companies were find a total of up to 53 million gel -the investigation was initiated by the social affairs of Georgia due to price increases in identical, pricing practices for oncology medication's by the importing and distributing companies.

Question 31

competition Agency has the authority to:

Answer 31

-identify cases of abuse of a dominant market position -detect anti-competitive agreements between economic agents -assess the compatibility of planned concentrations -identify cases of unfair competition by economic agents -investigate actions of government bodies, autonomous republics, municipal authorities in accordance with competition law -monitor state -protect local industries -protect consumer rights and legitimate interests of Georgia

Question 32

Corporate income tax

Answer 32

Corporate entities are also tax at a flat rate of 15% on their profits

Question 33

Property tax

Answer 33

Taxes levied on both individuals and businesses. Property tax rates vary depending on the type and value for the property, with rates ranging from 1% to 1.5% for the individuals. And one percent for legal entities.

Question 34

Value added tax (VAT)

Answer 34

The standard VAT rate in Georgia is 18%. -however, there are exemptions in reduce rates for certain goods and services such as basic food products, books, and pharmaceuticals.

Question 35

Excise tax

Answer 35

Applied to certain goods such as alcohol, tobacco, fuel, and cars. The tax rates are determined based on the product

Question 36

Constitutional court of Georgia

Answer 36

Role: -the highest authority for constitutional matters in Georgia. Overseas whether laws and legal act comply with the Georgian Constitution. Functions: -resolves disputes regarding the constitutionality of laws -it rules on issues related to interpretation of the constitution -we can declare laws or government acts unconstitutional Composition: -the court consists of nine judges appointed for a term of 10 years

Question 37

Supreme court of Georgia

Answer 37

The role: -the Supreme Court is the highest judicial authority in the country for non-constitutional matter. It acts as the final court for civil, criminal, and administrative cases. Functions: -Final appellate jurisdiction: review decisions made by lower courts and civil, criminal, and administrative cases -it ensures uniformity in the interpretation of the law and issue rulings that guide lower courts. -review cases where there may be significant legal errors in the trial process. Composition: -consist of a president of the Supreme Court and other judges, appointed by the parliament of Georgia for a nonrenewable term of 10 years.

Question 38

appellate courts

Answer 38

Role: -serve as intermediaries between the trial courts and the supreme. They have the authority to hear appeals and reviewed the decisions of lower courts. Types: -civil and criminal courts -administrative appellate court: handles appeals in administrative law, reviewing decisions of the lower administrative courts. Functions: -review legal and factual errors in the initial rulings of trial courts. -have the authority to overturn or modify decisions made by lower courts.

Question 39

District (city) courts

Answer 39

The role: -primary courts of first instance in Georgia, where most legal disputes are initially filed in adjudicated. Types: -civil cases: disputes between individuals or entities related to property, contracts, family law -criminal cases: involving criminal offenses -administrative cases: regarding administrative law, such as challenges to government actions Functions: -district court handle the majority of cases and have original jurisdiction. They decide cases based on the facts presented by the parties, apply the law, and render a decision

Question 40

Magistrate courts

Answer 40

the role: -limited, jurisdiction and handle less serious civil, criminal, and administrative cases Functions: -criminal cases -civil cases -some administrative cases

Question 41

Non-entrepreneurial legal entities

Answer 41

Organizations that do not operate for profit. Characteristics: 1) do not distribute profits to members; any surplus is reinvested into the organizations mission 2) includes nonprofit organizations and foundations 3) often eligible for tax exemptions, and benefits 4) governed by specific laws and regulations regarding their formation governance and operation

Question 42

Private company

Answer 42

A type of business entity that is owned by private individuals or entities. Characteristics: 1) owners personal assets are protected from the companies debts 2) shares are not traded on public stock exchanges, providing more control 3) subject to less regulatory scrutiny 4) used for small to medium size businesses

Question 43

Limited liability, non-entrepreneurial legal entity(LEPL

Answer 43

A type of legal entity that combines aspects of limited liability with non-commercial purpose Characteristics: -Limited liability, meaning they are not personally responsible for entities debts -established for nonprofit objectives such as education, charity -governed by specific regulations that differ of for-profit entities.