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Legal Business 1 > Ch 12 Class Notes > Flashcards

Ch 12 Class Notes Flashcards

0
Q

Alien tort

A

Gives non citizens of US right to sue

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1
Q

How many sovereign nations existA.

A

194

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2
Q

4 main international risks

A

1 property protection
2 foreign regulation
3 different cultures
4 Foreign corrupt practices act

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3
Q

Foreign Corrupt Practices Act (1977)

A

Illegal to pay bribes to foreign officials with discretionary
Authority

Ok to make grease payments to low level government
Officials for routine government action

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4
Q

Nationalization

A

Government seizure of foreign owned property

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5
Q

2 types of nationalization

A

1 Expropriation

2 confiscation

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6
Q

Expropriation

A

Some compensation

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7
Q

Confiscation, 2) how can you mitigate property bring confiscated?

A

No compensation

2) see protections you have in country prior to purchase
By getting advice from trusted lawyers

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8
Q

UN

A

Treaty where member nations give power to United Nations

power to invoke sanctions and keep peace

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9
Q

3 major international principles/doctrines

A

1 comity

2 act of state

3 sovereign immunity

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10
Q

Comity

A

One country gives effect to laws and judgements of other

Country

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11
Q

Act of state

A

Judge in 1 country won’t strike down official act of another
Country

Ex. Expropriation

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12
Q

Sovereign immunity

A

Can’t sue government, king, country

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13
Q

Foreign sovereign immunity act 1976

A

Provides exceptions to sovereign immunity rule

Can sue country over commercial actions

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14
Q

A US commercial ship shipping commercial goods is seized by Somali Government. What is the legal issue? Is there a basis to sue?

A

Issue: sovereign immunity

Can sue in US according to foreign sovereign immunity
Act because commercial transaction

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15
Q

Name 5 major international organizations

A 
1 UN
2 IMF
3 World Bank
4 World Trade Organization
5 European Union
16
Q

IMF

A

Promotes orderly and stable foreign exchange rates

17
Q

World Bank

A

Makes loans to developing countries

18
Q

World Trade Organization

A

Decision maker of global trade agreements

Promotes free trade

19
Q

What company was behind the US lawsuit against the EU for banning genetically modified food?

What was the outcome/what organization decided the case?

A

Monsanto

WTO decided case in favor of Monsanto on technical
Issues

20
Q

How many nations does the EU consist of, and what is the purpose?

A

27 nations

Economic partnership

21
Q

3 major international trade agreements?

A

1 Contract for International Sale of Goods (CISG)

2 NAFTA

3 CAFTA - DR

22
Q

Contract for international Sale of Goods (CISG)

A

Like UCC, but applies to international sales

More lenient than US contract laws because sales don’t need
To be in writing

23
Q

NAFTA

A

North America Free Trade agreement btw US, Canada

And Mexico

24
Q

CAFTA - DR

A

Central America and dominican republic and US

Similar to NAFTA

25
Q

How can tariffs be used to protect the economy?

A

Protect jobs and exports

26
Q

What advantages do we have in the US for tariff and trade remedies?

A

Flexibility, access to resources, technology (US is more

Innovative), education

27
Q

Trade Barriers: global trend

A

Trend is toward opening up trade barriers

28
Q

Name 6 key international contract terms

A 
1 choice of language
2 place of trial (forum)
3 choice of law
4 choice of currency
5 force majeure clause (disasters)
Arbitration clause (new York convention)
29
Q

Force majeure clause

A

Frees parties from contract when extraordinary event

Occurs

30
Q

Letter of credit

A

Assurance to get goods purchased internationally

31
Q

US Laws: Discrimination

A

US laws apply here to foreign companies

US laws don’t apply abroad to US companies where they
Conflict with foreign law

32
Q

Alien Tort Claims Act (1789)

A

US courts have jurisdiction over any civil action by an
Alien for tort committed in violation of the law of nations
Or US treaty

33
Q

XYZ is a US firm that makes communication software. The company recently learned that one of manufacturing firms it supplies is exporting insisted goods where US goods are prohibited.
Does XYZ have moral or legal responsibility in this case?
How should XYZ protect themselves under these circumstances?

A

Moral and legal responsibility to cease doing business with
Company

Protect itself by making report to US government to
Get out of situation

34
Q

5 ways to reduce risk selling commercial products in a new foreign country like Russia.

A 
1 partner with trusted experienced company in area (highest
Risk)
2 joint venture
3 wholly owned subsidiary
4 franchising
5 exporting (lowest risk)
35
Q

If you are instructed to bribe a foreign official when you are working for a company what 3 things should you do?

A

1 call home office to ask for advice

2 if boss says pay it, you should not, ask boss to run it
By legal and look for other alternatives

3 seek guidance from legal and ethics hotlines

Legal Business 1 (25 decks)

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