International Business Law and Regulations

Study Notes

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.