L10 - Introduction to Business Law

Question 1

Interaction between state and commercial interest in space

Answer 1

• Businesses can be national or transnational → dictates focus and applicability of legal rules
• Risk minimization/allocation via contract
• Trend towards greater global legal unification – law applicable to contracts, non-contractual obligations, law of international sales
• High value + long term projects that are one of a kind

Question 2

How legal rules determine commercial business models

Answer 2

• Depends on context of business and the countries definition of “space activities” for licensing and authorizations
• Public procurement rules
• Export control laws and regulations (Dual use, ITAR)
• Telecom laws (ITU)
• Jurisdiction? International, National, Regional?
• A company cannot become “too” big before becoming impacted by anti-trust/monopoly rules but most of the space companies are big integrators
• Cartel law governs entry onto market – how can a new firm enter a market of big players?
o Price fixing, artificially limiting supplies, blocking markets, dumping prices
o Infringement of IPs

Question 3

How contracts determine business and its risks

Answer 3

•	NDAs
•	Types of contracts
o	Study contracts – risk assessments, regulatory issues
o	R&D contracts
o	Supply
o	Consulting
o	License agreements
o	Launch services
o	Large system prime contracts
o	Sat services

Question 4

Notion of Liability

Answer 4

• Flowdown of obligations/liabilities via subcontracts
o Customer – Main contractor (prime) – subcontractors (subs) – subcontractors (lower subs)
• Capped risk → prevents watershed if something goes wrong
• You are liable for your subcontractors, so the contractor is always in an uncomfortable position w/regards to customer and sub