Topic 4 - Subjects of international business law

Question 1

What is legal capacity?

Answer 1

Aptitude to hold rights and obligations according to the law

Question 2

What is capacity to act in law?

Answer 2

Aptitude to lawfully perform legal acts in order to acquire rights and obligations

Question 3

What are the different ways to take up economic activities?

Answer 3

1) Start a business as a self-employed person
2) Start up your own business
3) Find a job under someone else

Question 4

What does the TFEU do?

Answer 4

Free movement of:
Goods,
Persons,
Services,
Capital

Question 5

What does a natural person require?

Answer 5

They carry a commercial business as their professional regular activity & sufficient legal capacity

Question 6

What is the order of determining the relevant law in an international context?

Answer 6

1) Lex loci - law of the place
2) The personal law (nationality)
3) The legal capacity required by national applicable law
4) Legal capacity according to national law

Question 7

What are the common problems in practical application?

Answer 7

A person can bear more than one nationality & people can change their nationality

Question 8

What are boundaries in the application of national law?

Answer 8

1) Public order exception
2) Disqualification
3) National interest principle

Question 9

What is a worker?

Answer 9

A person who performs services under others’ direction in return for money

Question 10

What are the theories to determine nationality of an entity?

Answer 10

Incorporation theory; the country where the company has its statutory seat & Real seat theory; the country where the company has its real seat and its effective centre of administration