Lesson 8: Legal Compliance and Risk Management

Question 1

Ship Recycling Regulations

Answer 1

• Ships can only be recycled in authorized ship recycled facilities

Question 2

European Competition Regulation

Answer 2

Rules: The Treaty for the Functioning of the EU, EU Regulations, Commission Guidelines
Authorities: European Court of Justice and European Commission

Question 3

TFEU: European Regulation

Answer 3

Treaty for the Functioning of the EU

• Article 101: Control on any types of cartels or any anti-competitive practices
• Article 102: Prohibition of monopolies or any abuse of dominant market
• Article 102: Control of proposed mergers, acquisitions or joint ventures
• Article 107: Control of direct or indirect aid of EU members to companies

Question 4

Collusive Behavior and Agreements

Answer 4

Price fixing-> Product limitations-> Market Sharing->Discriminating against other trading parties->

Question 5

Abuse of Dominant Position

Answer 5

• Unfair pricing
• Limiting production
• Discriminating against other trading parties

Question 6

UN Global Compact

Answer 6

• Business and non-business engaging proactively in human rights, environment, anti-corruption areas to achieve goal of building sustainable and inclusive global economy. Three elements to consider:
  1. Internal: introduce anti-corruption policies within the organization
  2. External: Report on work against corruption in the annual Communication on Progress
  3. Collective: Join forces with industry peers and stakeholders

Question 7

Bribery vs Facilitation

Answer 7

• Bribery is when you give money to be entitled to something you were not supposed to be
• Facilitation is giving money to expedite an action
  - FCPA allows it, UK Bribery Act does not

Question 8

Sanctions

Answer 8

Foreign policy instruments aimed to change behavior. Most common restrictions are arms embargoes, travel bans, asset freezes, prohibition of payment, investment and capital movements, export/ import bans.

Question 9

Difference between Horizontal and Vertical Agreements

Answer 9

• Vertical Agreements: between parties on different levels of the chain distribution
• Horizontal Agreements: Between competitors, most likely to affect trade