Chapter 11: International Law Flashcards
League of Nations
Created by Woodrow Wilson after WWI; US did not join because of fighting in congress
How was the UN formed?
During WWII, 50 nations met in San Fran to draw up a charger for an international body to replace the league of nations
What percent of our profits come from international transactions?
50%
Can you just do business in another country?
Many steps to do this process; Exporting is a privilege, the company needs a license
International Law
Governs the relationships among countries
Globalization
Process of global businesses supported by governments to deregulate and liberalize world markets and redefine the legal rules that govern commercial relationships
Why has there been an increase in globalization?
Changes in transportation, communications, and computer technology
What does International Law deal with?
Rules, principles, and customs that govern the dealing between countries and the obligations and protections of the citizens of one country towards the people of another nation
Why is International Law more difficult than Domestic business operations?
Countries act in their self-interests
Public International Law
Examines relationships among nations and uses rules, treaties, and conventions that are binding on all countries
Treaties
Determines rules under which world traders can conduct business activities within each others territories
Who does a treaty bind?
Only the countries who are parties (sign it)
Bilateral Treaty
Agreement between 2 nations (China/N. Korea trade deal)
Multilateral Treaty
Agreement between more than two nations
Where does the authority come from in the US to enter a treaty?
US Constitution gives the President the power with the consent of the Senate to make treaties
Convention
An agreement negotiated by members of international organizations, which document is then open to adoption by other nations
Warsaw Convention
Originally limited damages to $75,000 on International flights unless there is willful misconduct on part of airline (still in effect today)
Panam Airline
Panam had tip that one of their planes had a bomb threat, didn’t tell people, so the people could sue because this was considered willful and wanton misconduct
Reverse Side of Ticket
Tells you the terms and conditions of the flight (Warsaw Convention)
Protocol
A treaty of international agreement that supplements a previous treaty/international agreement; Can amend the previous treaty or add additional provisions; Parties to earlier agreement not required to adopt protocol
1991 Protocol on Environmental Protection to the Antarctic Treaty
Created an environmental protection regime in Antartica
Private International Law
Looks at the laws applicable to private parties in their business affairs when they are from different nations
What type of cases does Private International Law try to solve?
Deciding whose law applies when a car made in Germany, sold in US crashes in Canada due to brake failure
Lex Mercatoria
Merchant Law
What does Lex Mercatoria do?
Have been supplemented by the active participation of the government in establishing international legal norms
Example of Lex Mercatoria
Congress has signed a number of laws for international trade, and treaties have been enacted that incorporate general international legal principles into US law
Harter Act
Sets forth the liability of ships for cargo losses when the shipment is between a US port and foreign country
Foreign Sovereign Immunities Act
Reinforced the immunity of foreign governments in the US courts but not when engaged in commercial activity
What can you do to an ambassador if they kill someone in the country?
Can’t arrest them, but can kick them out of the country
What can you do if an ambassador scams you and your lease?
You can sue because he is not engaging in diplomatic activity, rather he is in business activity
United Nations
Most extensive of the international organizations; Has produced a number of multilateral agreements
Purpose of the UN
Maintain peace, solve international problems, promotes respect for human rights
What is the UN made up of?
Each country belongs to the General Assembly in the UN and has 1 vote (like congress)
What does the General Assembly do?
Formulates international conventions; Can adopt resolutions, which are recommendations on matters within the scope of UN charter
Where is the real power held in the UN?
Security Council
Security Council
15 countries, 5 permanent (US, Russia, UK, France, China); Each has veto power over GA
Can the UN authorize military power?
Yes, they agreed upon first gulf war
International Court of Justice
“World Court”
Who elects the judges of the world court?
The General Assembly
Who can use the world court?
Only countries; Not available to individuals
Where is the world court located?
The Hague, Netherlands
How many cases does the world court hear?
1-2/year
Why is the US not a member of the world court?
Concerned that it will be used as a mechanism to bring war crimes against the country
European Union
Has torn down the geographic barriers of many European countries and promotes a common market in which people, money, and goods can be moved about with no restrictions
How many countries are in the EU?
27
What is the EU similar to?
Doing business between states
How many people does the EU represent?
1/2 billion; Third largest population in the world
Who in Europe does not belong to the EU?
Switzerland; England just dropped out
How is the EU similar to our justice system?
Has a judicial, legislative, and executive branch
What is the EU currency that they created called?
Euros
African Union
Consistes of 53 African countries and is loosely based on the European model
Free Trade Agreement
Treaty between 2 or more countries focused on the liberalizations of the trade between members of that agreement
North American Free Trade Agreement (NAFTA)
Allows free trade with no barriers, tariffs, or quotas among USA, Canada, Mexico
How much does NAFTA generate in trade?
$883 billion/year
What has happened as a result of NAFTA?
US has more products made in Mexico because of low labor costs; Products cheaper; US will export more high-tech items like computers to Mexico because the Mexican people will have more disposable income
