Final Flashcards

1
Q

What deals with the legal basis of global commercial relations?

A

-International Business Law

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2
Q

What are the sources of international business law?

A
  • rulings from international tribunals
  • customs
  • treaties
  • conventions
  • trade agreements
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3
Q

Multinational corporations and enterprises have a limited presence in foreign markets through what?

A
  • licensing intellectual property
  • exporting and importing
  • franchising
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4
Q

The regulation of multinationals is mostly a matter of what?

A

-domestic law

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5
Q

Generally, home states regulate what?

A

-the parent firm

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6
Q

Generally, the host states regulate what?

A

-foreign subsidiaries

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7
Q

Host states may also regulate the parent companies through a legal device called what?

A

-piercing the corporate veil (PCV)

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8
Q

Business that operate internationally face issues of what?

A

-regulations and licensing about imports and exports

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9
Q

Sometimes nations may require a foreign investor to accept a what?

A

-calvo clause

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10
Q

What is a calvo clause?

A

-an agreement that a business operating in a foreign country will not ask its home state to intervene in a dispute with the host state

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11
Q

What objections may states raise to complaints initiated against them?

A
  • lack of standing
  • lack of nationality
  • lack of a genuine link to the sponsoring state
  • failure to exhaust remedies
  • Laches: negligent delay in bringing a claim
  • dirty hands
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12
Q

A state that has harmed an alien may be required to pay what?

A
  • restitution in kind

- compensatory damages

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13
Q

The economic interests of foreign investors may be harmed non-commercial risks, such as what?

A

-social and political upheavals

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14
Q

Non-commercial risks are usually addressed during what between who?

A

-ad hoc negotiations between the foreign investor and a host country

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15
Q

What are sources of insurance?

A
  • private insurers

- governments and intergovernmental agencies

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16
Q

Insurance products include what?

A
  • international property insurance
  • international casualty insurance
  • coverage for overseas employees
  • special coverages (Kidnap, ransom, political, etc.)
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17
Q

To operate globally, large business organizations have modified their structures to do what?

A
  • shares risks

- take advantage of the economies of scale

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18
Q

What is a non-multinational enterprise?

A

-a domestic firm that operates internationally through independent foreign agents

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19
Q

What is a national multinational enterprise?

A

-consists of one firm based in a country that acts as the parent company to operations in other countries through branches and subsidiaries

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20
Q

What is an international multinational enterprise?

A

-it has two or more parent companies in different countries. Possibly because of merges between parents

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21
Q

What are examples of International multinational enterprise?

A

-Unilever, Shell group

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22
Q

Where do the standards for ethical and legal behavior for multinationals come from?

A
  • home governments

- international organizations

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23
Q

Section 1 of the Sherman anti-trust act forbids what?

A

-combinations and conspiracies in restraint of interstate and international trade

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24
Q

Section 2 of the Sherman anti-trust act forbids what?

A

monopolies and attempts to monopolize interstate and international trade

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25
What expands the enforcement provisions of the Sherman Act?
-The Clayton Act
26
What does the Robinson-Patman Act forbid?
-price discrimination
27
To apply US Antitrust laws extraterritorially, it requires what?
- personal jurisdiction | - subject matter jurisdiction
28
What does Article 81 of the European Community Treaty forbid?
competitors entering agreements to prevent, restrain, or distort trade
29
What does Article 82 of the European Community Treaty forbid?
-dominant businesses from taking advantage of their position to the detriment of consumers
30
Multinationals are also subject to what?
-International tort and product liability laws
31
What is product liability?
the liability of a manufacturer for the injuries caused by its defective products
32
Product liability suits are based on what three theories?
- breach of contract - negligence - strict liability
33
The US and Britain apply how many theories of product liability?
-all 3
34
Which theory of product liability does the EU rely mostly on?
-strict liability
35
What refers to business dealings designed to obtain a benefit for a person or firm regardless of the means used?
-sharp practices
36
What means are included in sharp practices?
misrepresentation, fraud, bribery
37
What did the US enact to combat sharp practices?
-Foreign Corrupt Practices Act
38
Host states regulate multinationals by applying their own rules about what?
-unfair competition; sharp practices; implied consent; product liability; common enterprise liability; PCV
39
Compacts that serve as a guide for the transcultural corporate ethic include what?
- UDHR - European convention on Human rights - The Helsinki Final Act - Organization for economic cooperation and development (OECD) guidelines for multinational enterprises - international labor office tripartite declaration principles concerning multinational enterprises and social policy - The UN code of conduct on Transnational corporations
40
The Transnational corporations guidelines fall into what five groups?
- employment practices and policies - consumer protection - environmental protection - political payments and involvement - Basic Human rights and fundamental freedoms
41
Multinational corporations should not contravene with what?
the manpower policies of host nations
42
MNCS should respect what?
- the rights of employees to join trade unions and bargain collectively - host country laws and policies of consumer protection - host country laws and goals regarding the environment - rights of all persons
43
MNCS should not interfere with what?
intergovernmental relations
44
What are free zones?
-areas where goods may be imported and exported free from customs and tariffs
45
Why are free zones established?
-to attract investment
46
Who is involved in a free trade area?
-two or more states
47
What is a free city?
-an entire port city that has been opened to international trade
48
What is a free trade zone?
-a free zone located within or near a port city
49
What is the name of where manufacturing facilities process raw materials or assemble parts imported from abroad and then export the finished product?
-Export Processing Zones
50
What are found at international airports and harbors?
-Free retail zones/duty free zones
51
In France and Germany, every form of business organization must do what?
-register with the state
52
The form of a company takes influences what?
-the taxing possibilities
53
What case set precedents for how the relationship between the parent company and its subsidiaries affect how they are taxed?
Reiss and Co. v. Federal Board of Inland Revenue
54
Under what may a state tax the worldwide income of its nationals?
-Nationality principle
55
Under what may a state tax the worldwide income of persons residing within its territory?
-Residency principle
56
Under what may a state tax the income derived from sources within its territory?
-Source principle
57
What is double taxation?
-the payment of taxes on one source of income to two states
58
The basis of taxation may be defined by what?
-tax treaties
59
The OECD and UN tax treaties base taxation on what?
-the residency of persons within the contracting states
60
What are examples of tax incentives?
- income tax holidays - capitol allowance for accelerated depreciation - import incentives - export incentives - tax exemption for expatriate employee
61
Companies may indulge in tax avoidance/evasion through what?
- tax havens - transfer pricing - Arm’s length transactions - treaty shopping
62
What is transfer pricing?
-charging higher prices in a high tax state in order to have smaller profits
63
What are Arm’s Length Transactions?
-treating affiliate firms as if they are unrelated
64
How do countries such as the US and Switzerland combat fraud and abuse by international taxpayers?
-either ordinances or common law principles of equity
65
Who has the primary purpose of improving working conditions and living standards of workers in all countries?
-International Labor Organization (ILO)
66
International labor standards are created by what?
- ILO conventions | - ILO recommendations
67
The member states of the ILO are required to provide what?
annual reports to verify compliance with the conventions
68
What is extradition?
A procedure under which a fugitive is lawfully sent to a requesting state
69
true or false: there is no global extradition treaty
true
70
True or false: there is no duty to surrender an individual to another nation
true
71
Some states may refuse or deny extradition on what?
political grounds
72
Instead of a global extradition treaty, there are what?
hundreds of bilateral treaties
73
What is a covert operations under which even an innocent person may be forcibly transferred to a state?
Rendition
74
A rendered individual is deprived of what?
access to a counsel and a hearing
75
When two states agree to establish diplomatic relations they exchange what?
representatives
76
Exchanged representatives can be named what?
-ambassador minister -head of mission
77
Normally, the second ranking official in the diplomatic delegation is called what?
charge d'affaires
78
true or false: no country has diplomatic offices in every country in the world
true
79
The US has how many embassies around the world?
140
80
How many embassies does the US host in Washington DC?
130
81
The process of exchanging diplomats begins with a what?
accreditation
82
true or false: the host country does not have to consent to the diplomat
false
83
When was the Vienna Convention of Diplomatic Relations?
1961
84
Under the Vienna Convention of Diplomatic Relations, a diplomat does what?
- represents the state - protects interests of sending state - negotiates with the government of the host state - promotes friendly relations between the two states
85
When was the Vienna Convention on Consular Relations?
1963
86
Under the Vienna Convention on Consular Relations, consular officials are not usually what?
Diplomatic representatives
87
What are consular officials technically?
official agents of the sending state
88
Consular officials protect what?
The interests of the sending state and its nationals within IL
89
Consular officials issue what?
passports to nationals of the sending state; visas to the persons traveling to the sending state
90
Consular official promote what?
commercial, cultural, and friendly relations
91
Under what are embassies and consular premises the territorial extensions of the sending state?
International Law of Diplomacy
92
Which article of the Vienna Convention on diplomatic relations states "a diplomatic bag shall not be opened or detained?"
27(3)
93
Diplomatic immunity means what?
diplomatic agents are exempt from the operation of domestic law of the host nation
94
What are the two US laws that grant diplomatic immunity?
- foreign sovereign immunities act | - diplomatic relations act
95
Under the DRA, persons injured by diplomatic personnel have been denied what?
relief under US law
96
The major IL sources on diplomatic privileges and immunities are what?
- Vienna Convention on Diplomatic Relations (VCDR) | - Vienna Convention on Consular Relations (VCCR)
97
What provides that the authorities of the host nation may not enter the premises of a diplomatic consulate without permission?
Article 31 of the VCCR
98
Under the convention on the privileges and immunities of the UN, diplomats assigned to the UN and its subsidiaries enjoy what privileges and immunities?
- immunity from personal arrest or detention - all papers and documents not to be violated - exemption of diplomatic families from immigration restrictions
99
Who else enjoys diplomatic immunity?
international organizations, their agents, officials, and invitees
100
What is the citation for the International Organization Immunities Act?
22 USCA 8288
101
Crimes under IL may be prosecuted where?
national or international courts
102
In nost cases, a criminal conduct in international law may also be what?
a crime under national law
103
Much of international criminal law is based on what?
international humanitarian law
104
The 4 Geneva conventions on the laws of war authorize any state to do what?
try individuals who have allegedly committed grave offenses under the conventions
105
What did the Tokyo and Nuremberg tribunals prosecute individuals for?
- crimes against peace - war crimes - crimes against humanity
106
What articles of the Nuremberg charter provide that an individual charged with a crime cannot avoid responsibility by attributing his criminal conduct to orders from a superior?
5-6
107
Which article of the Geneva convention deals with general breaches?
2
108
Which article of the Geneva convention deals with violations of the laws or customs of war?
3
109
Which article of the Geneva convention deals with genocide?
4
110
Which article of the Geneva convention deals with crimes against humanity?
5
111
when was the ethnic conflict in Rwanda?
1994
112
What security council resolution established the ad hoc tribunal for Rwanda?
955
113
Where did the security council select as the place for the ad hoc tribunal for Rwanda?
Arusha, Tanzania
114
What established the ICC and when?
Article 1 of The Rome Statute; 1998
115
Where is the ICC?
The Hague
116
Which article of the Rome statute gives the ICC certain powers?
5
117
What article of the Rome Statute discusses genocide?
6
118
What article of the Rome Statute discusses crimes against humanity?
7
119
What article of the Rome Statute discusses war crimes?
8
120
When did the US sign the Rome Statute and who signed it?
2000; Bill Clinton
121
President Clinton never did what with the Rome Statute?
Submit it to the senate for ratification
122
Who passed the American service members protection act?
The Bush Administration
123
what was the purpose of the American service members act?
shield US troops from potential prosecution from the ICC
124
Who "unsigned" the Rome Statute and when?
John Bolton; 2002
125
Who revoked the US visa of the chief prosecutor of the ICC and when?
Trump Administration; 2019
126
The law of the sea has been codified by who?
The International Law Commission
127
The law of the sea indicates that a coastal state may exercise jurisdiction over what?
- the territotrial sea - the continental shelf+ seabed+subsoil - The exclusive economic zone
128
What is the territorial sea?
a belt of sea that may not exceed 12 nautical miles from the coastal baseline
129
What is the exclusive economic zone?
a belt of sea beyond the territorial sea that may not exceed 200 nautical miles from the coastal baseline
130
When was the UN Convention on the Law of the Sea?
1982
131
Under the UN Convention on the Law of the Sea, ships of all states enjoy what?
the right of innocent passage through the territorial sea
132
In the territorial sea, submarines and other underwater vehicles are required to do what?
navigate on the surface and show their flag
133
Who was involved in the Corfu Channel Case?
UK v. Albania
134
What was the ruling in the Corfu Channel Case?
The ICJ agreed with Britain that it had a right ton send its warships through straights used for international navigation
135
What does article 38 on the UN convention on the law of the sea states what?
In straits, all ships and aircrafts enjoy the right of innocent passage
136
What does article 39 of the UN convention on the law of the sea state?
it is the duty of these vessels in transit to proceed through the strait without delay and refrain from any threat or use of force against states bordering the strait
137
During transit, foreign ships may not conduct research without authorization from who?
the bordering states
138
The right of free passage through canals is regulated by what?
treaty
139
The setting up of customs, zones, hovering acts and hot pursuits are regulated by what?
law
140
When does hot pursuit cease?
when the ship enters the territorial waters of its own or a third country
141
Some states assert a right to create what?
air identification zones
142
What did Canada declare in 1970?
an "anti-pollution zone"
143
What does the High Seas refer to?
all parts of the sea that are not included in the territorial sea or the internal waters of the state
144
The UN convention on the law of the sea supports what?
freedom of the high seas
145
Article 87 of the UN convention on the law of the sea states what?
The high seas are open to all states, coastal or landlocked
146
Freedom of the high seas includes what?
- freedom of navigation - freedom of overflight - freedom to lay submarine cables and pipelines - freedom of fishing - reservation for peaceful purposes
147
What are prohibited activities of the sea under the convention?
- slave transport | - piracy
148
When did the UN General Assembly pass Resolution 2749?
1970
149
What did Resolution 2749 declare?
the seabed and ocean floor and the resources there are common heritage of mankind
150
How many rivers are shared between 2 or more countries?
300
151
Who was involved in the Lake Lanoux case?
France v. Spain
152
What was the ruling in the Lake Lanoux case?
states do not need the prior agreement of interested states to use hydraulic power of international waterways
153
Who was involved in the Gabcikovo-Nagymaros Project case?
Hungary v. Slovakia
154
Who handled the Gabcikovo-Nagymaros Project case and when?
ICJ, 1998
155
What was the ruling in the Gabcikovo-Nagymaros Project case?
watercourse states shall participate in the use, development, and protection of an international watercourse in an equitable and reasonable manner
156
What is a thalweg?
the main channel in a shared water course
157
The median line establishes what?
the boundary of a non-navigable watercourse
158
when did the US-Mexico dispute over shifting channels resolve?
1963
159
Environmental issues are often handled through what?
international agreements and principles of international responsibility
160
Governments enact environmental law mainly to protect what?
human health and well being
161
Harm or injury in environmental law requires how many conditions?
4
162
Who was involved in the Trail Smelter Case?
US v. Canada
163
Who handled the Trail Smelter Case?
UN international Arbitration court 1947
164
What was the ruling in the Trail Smelter Case?
at all times a state owes a duty to protect other states against harmful acts by individuals from its jurisdiction
165
The US has what 2 major statutes dealing with trans-frontier pollution?
- The Clean Water Act | - The Clean Air Act
166
When was the Chernobyl explosion?
1986
167
What is the IAEA?
International Atomic Energy Agency
168
After the Chernobyl explosion, the IAEA adopted what 2 conventions?
- the convention on Assistance in case of a nuclear accident or radiological emergency - convention on early notification of a nuclear accident
169
Who issued the Legality of the threat or use of nuclear weapons advisory opinions and when?
ICJ, 1996
170
What was the ruling in the Legality of the threat or use of nuclear weapons advisory opinions?
international environmental laws do not specifically prohibit the use of nuclear weapons
171
When was the Rio Earth Summit?
1982
172
What did the Rio Earth Summit recognize?
That the environment and development are mutually connected
173
The mutual relationship of development and the environment is based on what principle?
the principle of sustainable development
174
What is UNEP?
The United Nations Environmental Programme
175
True or false: the US has signed both the Vienna convention on the protection of the ozone layer and the Montreal protocol
True
176
When was the Kyoto protocol?
1998
177
How many countries agreed to the Kyoto protocol?
over 160
178
For industrialized countries, the target reduction rate is what under the Kyoto protocol?
5.2% of their emission level in 1990
179
When did the countries who signed the Kyoto protocol have until to drop their emissions?
2008-2012
180
True or false: the US signed the Kyoto protocol
false
181
What are the two sources of IL that protect endangered species?
- UN convention on Biological Diversity | - Convention on International trade in Endangered Species of Wild Fauna and Flora
182
International movements of hazardous waste are now subject to what?
The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
183
How much does the US participate in the Basel Convention?
they are a signatory but not a full participant
184
when was the biosafety protocol?
2000
185
When did the UN adopt a resolution that any state planning on international direct television broadcasting satellite service should consult with the receiving state?
1982
186
The users of Antarctic and Polar regions are based on what?
- Principle of sector control | - Madrid protocol
187
International economic law is dominated by what?
international agreements
188
What created the EU and NAFTA?
multilateral agreements
189
The first global commercial agreement was what?
the General Agreement on Trade and Tariffs (GATT)
190
How many rounds of agreements were negotiated under GATT?
8
191
What round created the World Trade Organization?
Uruguay round
192
When was the WTO created?
January 1, 1995
193
Where is the WTO headquarters?
Geneva, Switzerland
194
How many countries make up the WTO members?
141
195
The WTO included a ministered conference which meets how often?
every 2 years
196
How many councils are in the WTO?
4
197
The WTO is the primary international forum for what?
managing all trade matters
198
Who handled the issue concerning Japan's alcoholic beverages?
the WTO dispute settlement panel
199
What was the issue concerning Japan's alcoholic beverages?
Whether or not them taxing imported alcohol at a higher rate than Japanese Sochu was a violation GATT article 3
200
Who handled the issue concerning the US import Prohibition of Certain Shrimp and Shrimp Products and when?
WTO appellate body in 1998
201
Who sponsored a multinational conference in Bretton Woods, NH and when?
US and Britain; 1944
202
What institutions were created after the Bretton Woods meeting?
- International Monetary Fund (IMF) | - International Bank for Reconstruction and Development (world bank)
203
Under the IMF, each member is assigned a what?
quota reflecting their relative position in the world's economy
204
Romano-Germanic civil law derives from where and is laid out in what?
Roman and Germanic practices; codes
205
What is the Islamic law system known as?
Sharia Law
206
The Anglo-American common law system is the legal system of who?
England and its former colonies
207
Anglo-American common law is based on what?
court-made rules or precedents
208
Military force in humanitarian intervention must be what?
a last resort
209
Who uses Romano-Germanic law?
France and Germany
210
When did the Security council authorize the collective use of force?
- Korea (1950) | - Iraq (1991)
211
The enforcement operation against Iraq was called a what?
"coalition of the willing"
212
When did the security council authorize action in Somalia?
1992
213
When was operation Restore Hope?
December 4, 1992
214
How many soldiers did the US send to Somalia?
25,000
215
When did the UN promote collective efforts in Haiti?
1994
216
When did the UN promote collective efforts in Yugoslavia?
1991
217
What is the secret/covert use of violence for a political purpose known as?
terrorism
218
When was the Tokyo convention?
1963
219
When was the Montreal Convention on Hijacking?
1971
220
When was the convention on crimes against diplomats?
1973
221
When was the Hague convention on hostage taking?
1979
222
When was the convention for the suppression of unlawful acts against the safety of maritime navigation?
1988
223
According to the classical or absolute theory of sovereign immunity, a sovereign cannot what?
be a respondent in the courts of another sovereign without his consent
224
Sovereign of public acts is known as what?
Jure Imperii of a state
225
Private acts of a state is known as what?
Jure Gestionis
226
When was the US Foreign Sovereign Immunities Act drafted?
1976
227
What section of FISA established a framework for whether or not a US state can exercise jurisdiction over a foreign state?
28 USC. Section 1602
228
The most significant FISA exception is what?
the commercial exception
229
FISA identifies how many types of waiver for immunity?
3
230
Under section 1607 of FISA, counter claims constitute what?
a waiver
231
Section 1605 of FISA denies immunity for who?
most non-commercial torts causing injury or damage to property
232
Other US laws dealing with immunity are what?
- diplomatic relations act | - international organizations immunities act
233
When was the Schooner Exchange v. McFadden?
1812
234
What was the ruling in the Schooner Exchange v. McFadden?
National ships of war entering the port of a friendly power are to be considered as exempted by the consent of that power from its jurisdiction
235
Who handled the Republic of Argentina v. Weltover Inc. case and when?
SCOTUS, 1992
236
Argentina used to issue bonds called what?
Bonods
237
When did Argentina default on bond payments?
1986
238
Who handled Saudi Arabia v. Nelson and when?
SCOTUS, 1993
239
What does Hermanos al Rescute mean?
Brothers to the rescue
240
When was the Anti-terrorism and Effective Death Penalty act?
1996
241
What was the ruling in the Alejandre v. Republic of Cuba?
An agent of a foreign state who commits an extra-judicial killing shall be liable for money damages, pain and suffering, punitive damages etc.
242
What is sovereign territory?
territory owned by a sovereign state
243
What is Trust territory?
territory not owned by any state due to its special status
244
What is Terra Nullis?
Territory capable of ownership, although not yet under sovereign control
245
What is Res Communis?
Territory that cannot be owned by any nation
246
The most common basis for claiming sovereignty over a particular geographical area is what?
exclusive occupation for an extended period of time
247
Some nations used what to establish an original claim?
discovery
248
Valid occupation involves discovery and what?
some symbolic act of possession
249
Discovery is supposed to be followed by what?
effective occupation
250
When did the US enter a treaty with Russia to get Alaska?
1824
251
A hostile takeover of a territory is known as what?
Belligerent occupation
252
Belligerent occupation does not what?
transfer sovereignty over territory to the occupying power
253
In belligerent occupation, the occupying power has the obligation to do what?
- respect the rights of the inhabitants | - use resources only for essential needs
254
Taking land by force is known as what?
conquest
255
What is cession?
an international agreement that deeds territory from one nation to another
256
Under which method of establishing sovereign title, may a state's territory may be augmented by new formations of land gradually deposited by bodies of water?
Accretion
257
How may a nation relinquish title to its territory?
renunciation
258
When did Italy renounce its title to territories in Northern Africa?
1947
259
the method of transferring sovereignty is also referred to as what?
- Acquiescence | - Estoppel
260
What is a 20th century device for transferring sovereignty over state territory?
joint decision
261
Under which approach are title disputes examined by judges or arbitrators?
Adjudication
262
the formation and implementation of treaties involves how many items?
5
263
What are the 5 items involved in the formation of treaties?
- negotiation - signature - ratification - entry into force - registration
264
What is included in the ratification part of the treaty process?
reservations, if any
265
There are how many ways to determine whether a state has performed or properly revoked its treaty obligations?
6
266
Material breach by one party justifies what?
another party's non-performance
267
When does the UN charter prevail?
when it conflicts with another international instrument
268
True or false: a nation's IL cannot be used as a defense to its breach of an international obligation
true
269
The President's treaty power is expressed where?
Article 2, section, 2, clause 2 on the Constitution
270
There is a distinction between the president's constitutional treaty power and his what?
executive agreement power
271
Constitutions in Burkina Faso, Congo, Mauritania, and Senegal expressly state what?
a treaty is superior to domestic law
272
SCOTUS has held that the Constitution prevails when?
it conflicts with statutes or treaties
273
Under which article of the Constitution states that treaties and federal statutes are the supreme law of the land and are on equal footing?
article 6
274
When there is an issue between Treaties and federal statutes, SCOTUS applies what rule?
"The last in time prevails"
275
Executive agreements are very similar to treaties except that they do not require what?
the consent of senate
276
What are the popular business form in France and Germany?
- Societe Anoyme | - Gesellschaft