BUL3310 Abbreviations you may need to know Int l International Gov t Government w with w o without Chapter 8 International Law in a Global Economy Sec 1 Major difference between international law and national law is Gov t authorities can enforce natural law By definition a nation is a sovereign entity Means that there is no higher authority to which that nation must submit If a nation violates an international law and persuasive tactic fails Other countries or international organizations have no resource except to take coercive actions From severance of diplomatic relations and boycotts to war against a violating nation Overall attempts to reconcile need of each country to be the final authority over its own affairs with desire of nations to benefit economically from trade and harmonious relations Sovereign nations voluntarily agree to be governed in certain respects by international law for the purpose of facilitating international trade and commerce as well as civilized discourse Result international law has evolved Sources of International Law Three sources 1 International Customs 2 Treaties and International Agreements 3 International organizations and conferences International Customs Important source of international law Consists of international customs that have evolved among nations in their relations with one another Statue of International Court of Justices refers to an international custom as Evidence of a general practice accepted is a law Treaties and International Agreements Another important source of international law Treaty an agreement or contract between 2 or more nations that must be authorized and ratified by the Supreme power of each nation Art 2 Sec 2 president has the power by and with the advice and consent of the Senate to make treaties provided 2 3 senators concur Bi lateral Agreement formed by several nations Ex regional trade associations Andean common Euro Union result of multi lateral trade agreement International Organizations Refers to an org composed mainly of officials of member nations and usually established by treaty US is member of over 100 multi lateral and bi lateral organizations 20 through UN These organizations adopt resolutions declarations and other types of standards that often require nations to behave in a particular manner General Assembly of UN for ex adopted numerous non binding resolutions and declarations Disputes with respect to these resolutions and declarations may be brought before the international court of Justice Court normally has authority to settle legal disputes only when nations voluntarily submit to its jurisdiction The UN Commission on International Trade Law has made considerable progress in establishing uniformity in international law as it relates to trade and commerce Commission s most significant creation to date is the 1980 Convention on Contracts for the International Sale of Goods Similar to Uniform Code Designed to settle disputes between parties to sales contracts It spells out the duties of int l buyers and sellers that will apply if the parties have not agreed otherwise in contracts CISG only sales contracts between trading partners in nations that have ratified the CISG Common Law and Civil Law Systems Companies operating in foreign nations are subject to the laws of those nations Internal disputes often resolved through court system of other nations Businesspersons should understand legal systems around the globe generally are divided into common law and civil law systems Civil Law Systems Code law most European nations as well as nation in Latin America Africa Asia base their legal systems on Roman Civil Law or code law Term Civil Law used here refers not to civil as opposed to criminal law but to Codified Law an ordered grouping of legal principles put into law by legislature or other gov t body Civil System Law Primary source of law is statutory code Court interprets code and applies rules to individual cases Courts may not depart from the code and develop their own laws Judicial proceeding are non binding as in a common law system Trial procedures also differ in civil law systems Unlike judges in common law systems judges in civil systems often actively question witness Islamic Legal Systems 3rd less prevalent legal system common in the Islamic countries where law influenced by Sharia Sharia is a competitive code of principles that governs both the public and the private loves of persons of Islamic faith directing many aspects of day to day life including politics economies banking business law contract law and social issues Although Sharia affects the legal codes of many Islamic countries extent of its impact and interpretation wary widely some countries enforce by national system International Principles and Doctrines Over time number of legal principles and doctrines have evolved and are employed to a greater or less extent by courts of various nations to resolve reduce conflicts that involve a foreign element 3 important Principles based on courtesy and respect and applied in interest of harmonious relations among nations The Principle of Comity One nation will defer and give effect to the laws and judicial decrees of another country as long as they are consistent w the law and public policy of the accommodating nation Ex Swedish and US buyer Buyer breaches contract seller sues in Swedish court awards damages Buyer s assets cannot be reached unless US court makes a judgment In this situation US court determines of procedures and laws are consistent with U S national law Likely defer to foreign courts judgment One way to understand the principle of comity and Act of State Doctrine is To consider relationships among the states in our federal form of gov t Each state honors the contracts full faith and credit property deeds wills and other legal obligations formed in other states as well as judicial decisions On global basis nations similarly attempt to honor judgments rendered in other countries when it is feasible to do so In US states required to honor other states actions Internationally nations are not required to honor actions of other nations The Act of State Doctrine Provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign gov t within the latters own territory o When a foreign Government Takes Private Property The act of state doctrine can have important consequences for individuals and firms doing business with
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