International Business Law and Regulations

10 Questions

What are the primary sources of international law?

All of the above

International customs are always written and require ratification to become binding.

False

What is an example of the Principle of Comity in international law?

deference to laws of other nations when consistent with one's own

The Doctrine of Sovereign Immunity states that foreign nations are immune from U.S. jurisdiction unless the foreign country conducts commercial business activity in the United States and an entity in the United States files a ______ against the foreign business.

lawsuit

Match the following legal issues that might arise in international businesses with their descriptions:

Employment laws = Include rights such as sick pay and holiday pay for employees Company share options = Option for employees to own company shares Tax obligations = Complying with local and global tax rules Incorporation and company structure = Determining the organizational form and structure of the international business

What are some common aspects to be included in an agreement regarding incorporating entities?

company’s name, purpose, structure, names of directors, share distribution, salaries of directors

Why is it important for international businesses to understand international labour and employment laws?

To protect employees, governments, and trade unions

IP registered in one country is automatically protected in another country.

False

What organization administers the Madrid, Hague, and PCT Systems for international registration of IP?

World Intellectual Property Organization (WIPO)

Match the following trade sanction mechanisms with their descriptions:

Embargoes = General prohibition of most trade with the sanctioned country Export Restrictions = Target the export of products or services to a sanctioned country Import Restrictions = Target the import of products or services from a sanctioned country Tariffs and Quotas = Limit trade flows for economic motivations rather than foreign policy reasons

Study Notes

International Law

International law is primarily governed by customs, treaties, and organizations that influence how laws are understood, interpreted, and enforced around the world.
There is no central court to enforce international law, so each country utilizes its own courts to settle disputes.

Primary Sources of International Law

International customs, treaties, and organizations are the primary sources of international law.
International customs are general practices between nations that guide their business relationships.
Treaties and other agreements between nations are authorized and ratified by the countries that acknowledge their legality.
International organizations adopt resolutions that standardize behavior and create uniform rules related to trade and commerce.

International Customs

Customs are general practices between nations that guide their business relationships.
Examples of customs include the international protection of ambassadors, which has been a custom for thousands of years.

International Treaties

Treaties and other agreements between nations are authorized and ratified by the countries that acknowledge their legality.
Examples of treaties include bilateral agreements, such as the Peru-United States Trade Promotion Agreement, and multilateral agreements, such as the North American Free Trade Agreement (NAFTA).

International Organizations

International organizations are comprised of officials who represent member nations that have established a treaty to oversee shared interests, including trade and commerce.
Examples of international organizations include the United Nations and the European Union.

United Nations

The United Nations was created as a multilateral treaty in 1945.
The UN's organizational goals include maintaining global peace and security, promoting economic and social cooperation, and protecting human rights.

Sources of International Law

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is one of the most important governing documents for international law.
CISG governs contracts of countries that have ratified it as the priority contract for trade.

International Principles and Doctrines

The Principle of Comity states that nations will defer to the laws and decrees of other nations when those laws are consistent with their own.
The Act of State Doctrine states that the United States and England will not pass legal judgment on public acts committed by a recognized government within that government's own territory.
The Doctrine of Sovereign Immunity states that foreign nations are immune from U.S. jurisdiction when certain circumstances are applied.

International Law Enforcement

Companies operating in foreign nations are subject to the laws of those nations.
Common law systems operate independently, developing their own rules that govern areas of business law, such as torts and contracts.
Civil law systems base their legislation on Roman civil law, which utilizes statutory codes as the primary source of law.

Impact on International Trade

Collective action occurs when businesses work collectively to strengthen their resources and achieve a shared goal.
Reciprocity is central to international trade and at the core of customary international law.
Shaming is a deliberate attempt to negatively impact a state, regime, or governmental leader's reputation by publicizing and targeting violations of international laws.

Legal Issues in International Business

Employment laws, company share options, tax obligations, incorporation and company structure, and contracts are all important legal issues to consider when expanding a business internationally.