Chapter 7: the international legal environment: playing by the rules Flashcards
what are the four hertigas of todays legal system?
- Common law
- Civil or code law
- Islamic law
- Commercial legal system
About common law
Derived from English law.
Found in England, U.S., Canada, and other countries
once under English control.
Based on tradition, practices, precedents.
Set by past courts’ interpretations of statutes, legal legislation, and rulings.
About Code law
Derived from Roman law.
Found in Germany, Japan, France.
Non-Islamic and non-Marxist countries.
Based on all-inclusive system of written rules of law.
3 main codes: commercial, civil, and criminal.
All laws are codified, but broad interpretations are
possible.
About Islamic law or Shari´ah
Based on interpretation of the Quran.
Prescribes specific patterns of social and economic behavior for all people
* Property rights, economic decision making, economic
freedom.
Overriding objective is social justice and equality.
- Emphasises ethical, moral, social and religious
dimensions.
Prohibits investment in activities that violate
Shari’ah
about Marxist-Socialist Tenets
Pattern for development of economy differs by country.
- Found in Russia, Eastern Europe, China, and other
socialist states.
Law is subordinate to prevailing economic conditions.
Development of commercial legal system necessary.
- Socialist countries trading with non-Marxist countries.
in which situations does legal disputes arise and where do we solve them
- Between governments
* Resolved by The World Court at the Hague. - Between a company and government
* Handled by a court in one of the countries involved or through arbitration. - Between two companies
* Handled by a court in one of the countries
involved or through arbitration.
how is jurisdiction generally determined?
- Jurisdictional clauses included in contracts
- Where a contract was entered into
- Where the provisions of the contract were
performed
International Dispute Resolution: Conciliation
Resolve dispute by asking third party to mediate.
Discussion during mediation is confidential.
- May not be used in future litigation or arbitration.
Not legally binding.
International Dispute Resolution: Arbitration
Disinterested and informed party chosen as referee.
- Determine the merits of the case.
- Make judgment both parties in conflict can honor.
Many arbitral centers, each with standardized procedures.
Arbitration clauses require agreement on two
counts.
*Parties agree to rules and procedures of some
arbitration tribunal.
- Parties agree to abide by the awards resulting from the
arbitration. - Legally binding in most countries.
International DIspute Resolution: Litigation
Commonly initiated by a lawsuit; held in formal
court.
Why do most try to avoid litigation?
- Fear of creating poor image and damaging public
relations. - Fear of unfair treatment in foreign court.
- Difficulty in collecting judgment that may otherwise
have been in a mutually agreed settlement through arbitration. - Expensive and requires a lot of time.
- Loss of confidentiality.
why are intellectual property important to protect?
- Among most valuable assets to a company.
- Companies spend millions of dollars on establishing
property rights.
Why are global brand names and trademarks important?
- Used to symbolize quality of product or company.
- Entices consumers to buy good or service.
Counterfeiting and Piracy
Occurs in a range of industries.
Costs companies billions of dollars in lost revenue.
- Counterfeit pharmaceuticals most dire; can cause death.
Collusion between manufacturer and illegitimate sellers. - Makes counterfeiting more possible. Some feel the intellectual property regime has gone too far in favor of firms; hinders creativity.
