Unit 8 Flashcards
What are the 3 types of legal systems?
(1)Civil law
(2)Common law
(3)Religious law
What is civil law?
+Based on codification
+Systematic collection of laws designed to cover all areas of concern
+Derived from Roman law and influenced by religious law
+Most widespread method globally
What is common law?
+ relies on previous court decisions and interprets of statutes and regulations
+ relationship between judicial decisions and statutes can be complex. B.C. results of precedents are part of the process.
+Common law systems tend to be more adversarial than civil law systems
What are the 6 principles of common law systems?
(1)Rights of individual exist alongside those of state
(2)The trial is adversarial
(3)The defendant is presumed innocent until proven guilty
(4)Case Law develops through judgments and precedents
(5)Case law co-exists with statute law and in most cases, constitution
(6)Crimes are punished and civil wrongs are rectified by compensation
What is religious law?
+Religious document is the basis for legal system
+Some religious laws prohibits charging interests
+Jewish Halacha used to settle disputes of those who wish to be governed by it
What is rule of law?
+ when a country’s legal system is based on rule of law and not political dictatorship or powerful elite
+ foreign investment encouraged in such countries as interests are protected
Distinguish between public and private international law.
(1)Public international law:+Law that governs relationships between governments
(2) private international law:+Governs relationships between individuals/companies that cross international borders
What are the 2 sources of international law?
(1)Treaties:+agreements between countries
+Also called covenants, conventions or protocols
(2)customary international law:+international rules derived from customs and usage over centuries
What are 3 general concerns in global business?
(1)Extraterritoriality
(2)Performance of contracts
(3)Litigation
What is extrateritoriality?
+Countries attempt to apply its laws to non-resident foreigners and to activities that take place beyond its borders
+Example is tax and employment law
What are the points of concern with performance of contracts?
+No Worldwide Court has the power to enforce its decrees
+Worldwide courts rely on voluntary compliance
+Each nation is sovereign and has its own rules for recognizing decrees and judgments from other nations
What are the UN’s solution to performance of contracts?
+UN Convention on international Sales of Goods (CISG) specifies rights of seller and buyers
+Most countries have ratified it
+Is applied automatically if not specified in the contract
What is arbitration?
+A dispute resolution process agree to by parties in like of going to court, in which one person or a body make it decision
+Quick, less expensive, more private than litigation
What is litigation?
+Legal proceeding conducted to determine and enforce particular legal rights
+Can be complicated and expensive
+Which jurisdictions law should apply?
+Where should litigation occur?
What is intellectual property?
+A creative work or invention that is protectable by patents, trade marks, trade names, copyrights and trade secrets
What is a patent?
+Government grant giving the inventor of a product or process the exclusive right to manufacturer exploit use and sell that invention/process
+Country specific with a different approaches to protection
What is a trademark?
+Shape, color, design, phrase, abbreviation or sound used by merchants to designate and differentiate their products
+Governed worldwide by Madrid agreement of 1891
+Centralizes process but does not standardize or harmonize actual trade Mark protection
+Administered by WIPO which issues an international registration that is then presented for acceptance in each location with which company seeks protection of its mark
What is a trade name?
+Name used by merchant/manufacturers to designate and differentiate its products
+Protected under the world intellectual property organization (WIPO) also trade related aspects of intellectual property rights (TRIPS)
What is a copyright?
+Exclusive legal rights of authors, composers, creators of software, play rights, artists and publishers to publish and dispose of their work
What is a trade secret?
+Any information that a business wants to hold confidential
+Most common IP protection
+ Advantages: No public filing that shares innovation with the government, no registration process, less costly than patent
What are some standardised laws around the world?
INCOTERMS
(1)FAS:+The seller pays all the transportation and delivery expense up to the ships side and clears the goods for exporting
(2)CIF:+The price includes cost of goods, insurance and all transportation charges to the named port of Final Destination
(3)CRF:+Buyer purchase insurance, saves foreign exchange, insists on use of local insurance
What are competition/antitrust laws and who uses?
Antitrust laws
+Laws that prevent inappropriately large concentrations of power and its abuse through price fixing, market sharing and monopolies
Competition laws
Another term for antitrust law Mostly used by EU countries
Discuss some concepts concerning tort law.
(1)Tort:+An injury in inflicted on another person either intentionally or negligently
(2)Product liability:+A standard that holds a company and its offices and directors liable and possibly criminal liable for Death, injury or damage
(3)Strict liability:+A standard that holds the designer or manufacturer liable for damages caused by a product without the need for a plaintif to prove negligence in the products design or manufacture
