International Law

1. International Law • Types of law systems • Common law • Code law • Islamic law • Communism • Definition: • Treaties, customs, recognized principles when one country deals with another • Bilateral • Multilateral

2. LESCANT Factors • Language • Environment & Technology • Social organization • Contexting • Authority • Nonverbal behavior • Time Concept

3. Contracts for the International Sale of Goods • 1980 • Adopted in 53 countries, including U.S. • Similar to UCC

4. Treaties and International Trade Organizations • WTO/GATT • Outlaws tariff discrimination • Most favored nation status • Outlaws nontariff barriers • Caps tariffs

5. Treaties and International Trade Organizations • UNCITRAL • United Nations Commission on International Trade Law • 36 countries • Proposes ‘model laws’ for uniformity

6. Treaties and International Trade Organizations • EU • European Commission • Education • Health • Culture • Consumer protection • Council of Ministers • European Parliament • Court of Justice • Euro • Antitrust laws similar to Sherman Act

7. Treaties and International Trade Organizations • NAFTA • All tariffs to be eliminated in 15 years • Can be “snapped back” if US is overrun with imports or imports cause harm • Duty free if 100% North American origin • Environment • Left to each nation if not arbitrary or unjustifiably discriminatory • Regulations must be “necessary” to protect life • Regulations must be based on “scientific principles” • No mention of genetic engineering

8. Treaties and International Trade Organizations • U.S. International Trade Commission • 6 appointed commissioners with 9 year terms • Advises president on preferences (lower tariffs) • Industries petition ITC • Import interference with agricultural programs • Keeps track of unit labor costs by country • Special 301 • International theft of U.S. intellectual property • Identifies “priority foreign countries” • May impose sanctions

9. International Courts • No real enforcement • International Court of Justice (World Court) • Established by UN • Nation v. Nation • Voluntary agreement to have case heard • Not bound by the decisions • Not for business disputes

10. International Courts • European Court of Justice • Enforces EU law • Member nations, EU institutions, other parties & businesses v. member nations • Enforcement by national courts

11. International Courts • WTO dispute resolution • Trade disputes between member nations • May order retaliatory trade sanctions

12. International Arbitration • Organizations • American Arbitration Association • International Chamber of Commerce • UN Commission on International Trade Law • Arbitrator issues award • No enforcement power • Enforcement only if: • Nation is signatory of UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards

13. International Law Principles • Sovereign immunity • Equality of countries • Each country sovereign nation • No country subject to another’s laws without consent • International commercial transactions are voluntary – subjects country’s government to civil suits

14. International Law Principles • Expropriation • Act of State Doctrine • Recognizes as valid acts by other nations even if illegal in US • Usually challenged when private property is nationalized

15. International Law Principles • Protections of US property • Foreign Assistance Act of 1962 – Hickenlooper amendment • President can punish nations that expropriate private US property • Actual expropriation • Effective expropriation • Clauses in trade treaties • Overseas Private Investment Corporation (OPIC) • Federal insurer – premiums based on risk • Countries where per capita income is $250 or less • Confiscation, insurrection, repatriation, war, revolution

16. International Law Principles • Repatriation • Some nations limit repatriation • Acts of state • Forum non conveniens • Cases must be brought under the correct jurisdiction

17. Conflicts of Law • No 2 countries have the same laws • The parties may choose which law applies • By default, the laws of the country of contract performance apply

18. Protections in International Competition • Antitrust laws • US Law • All US firms • All firms operating in the US • Firms whose business has substantial impact on US trade • Who can sue • U.S. & foreign governments • U.S. & foreign businesses • Any other injured party

19. Protections in International Competition • Export Trading Company Act of 1982 • Allows Jvs between competitors when outside the US • Must show the firm will not: • Substantially lessen competition or restrain trade in the U.S. or restrain export trade of a competitor • Cause unfair competition • Affect the price of goods/services in the U.S. • Resell the exported goods in the U.S.

20. Protections in International Competition • Helms-Burton Act • 1996 • Punishment for firms that use confiscated U.S. property • Executives and families may not enter U.S. • Allows suits against those companies • Targeted at Cuba

21. Protections in International Competition • Intellectual Property • International agreements being negotiated • Gray Market goods • Goods with U.S. intellectual property protection are are foreign made & imported without consent of U.S.trademark holder • Outlawed by U.S. Customs Service • Criminal Law • Individuals and businesses are subject to host country’s criminal law

22. Foreign Corrupt Practices Act • Applies to all businesses registered under SEC • Illegal to use mails or interstate commerce for bribes • Shareholders, officers, directors • 5 years in prison • $100,000 fine • Business penalty – up to $2 million • Exceptions • Grease payments • Bribes to non-government foreigners • Extortion payments • Payments that are legal within he host country