International Law Basics Quiz
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Questions and Answers

What is a characteristic of international law?

  • Absence of a centralized law-making body (correct)
  • Existence of a supreme authority to enforce laws
  • Uniform application of laws across all states
  • Automatic enforcement of international treaties

What are countermeasures in international law aimed at?

  • Establishing diplomatic relations
  • Ensuring global governance
  • Punishing states for wrongful acts (correct)
  • Encouraging economic cooperation

Which of the following is considered a principle of jus cogens?

  • Right to free speech
  • Prohibition against slavery (correct)
  • Right to bear arms
  • Right to privacy

What is the primary goal of international law?

<p>To regulate relations between states and international organizations (D)</p> Signup and view all the answers

What does the rule of law guarantee within a state?

<p>Equal application of laws to all individuals (D)</p> Signup and view all the answers

What is mediation in the context of international disputes?

<p>Non-binding intervention to promote resolution (A)</p> Signup and view all the answers

Which of the following is a potential disadvantage of sanctions?

<p>They can harm both imposing and targeted states (C)</p> Signup and view all the answers

What type of law includes customary international law and international treaties?

<p>International law (D)</p> Signup and view all the answers

What was the primary purpose of the prohibition on customs duties within the EU Customs Union?

<p>To combat trade obstacles between member states. (C)</p> Signup and view all the answers

What year was the EU Customs Union established?

<p>1968 (A)</p> Signup and view all the answers

Which of the following documents contains Article 28 that stipulates the customs union for the EU?

<p>Treaty on the Functioning of the European Union (A)</p> Signup and view all the answers

What is a central piece of EU custom legislation that was enacted in 2013?

<p>Union Customs Code (B)</p> Signup and view all the answers

Which organization significantly shapes EU customs legislation through its international instruments?

<p>World Trade Organization (A)</p> Signup and view all the answers

What role does the Customs Union play within the EU?

<p>It supports the EU's internal market and common commercial policy. (D)</p> Signup and view all the answers

What aspect of international instruments does EU customs law reflect to overcome language barriers?

<p>Standardization through codes instead of words. (D)</p> Signup and view all the answers

Which of the following is NOT part of the key drivers for international trade facilitation according to the content?

<p>European Court of Justice (C)</p> Signup and view all the answers

What is the primary aim of the new Regulation on Foreign Subsidies?

<p>To address distortive effects of foreign subsidies (A)</p> Signup and view all the answers

Which of the following is a tool included in the EU competition policy toolbox?

<p>Merger control (B)</p> Signup and view all the answers

What does Article 101 of the TFEU prohibit?

<p>Anti-competitive agreements that restrict competition (A)</p> Signup and view all the answers

What is the effect of a leniency application in the context of anti-competitive agreements?

<p>The firm may receive full exemption from fines for cooperating (D)</p> Signup and view all the answers

What is the purpose of State aid rules in the context of competition policy?

<p>To prevent distortions caused by preferential treatment (C)</p> Signup and view all the answers

What can be an origin of Article 101 cases?

<p>A complaint submitted by a third party (C)</p> Signup and view all the answers

Which of the following is NOT a goal of the EU competition policy tools?

<p>Ensuring public safety (D)</p> Signup and view all the answers

What distinguishes horizontal agreements from vertical agreements?

<p>Horizontal agreements occur between companies at the same supply chain level (D)</p> Signup and view all the answers

What is a potential consequence for DPAG if found to have violated EU competition laws?

<p>Fines up to 10% of global revenue (B)</p> Signup and view all the answers

Which practice is likely to be viewed unfavorably by the European Commission?

<p>Using profits from a state-sanctioned monopoly to subsidize services (C)</p> Signup and view all the answers

Which statement best describes DPAG's defense regarding its pricing strategy?

<p>There was no intent to harm competition in the market. (C)</p> Signup and view all the answers

What might the European Commission impose to stop DPAG's pricing practices?

<p>Cease and desist orders (B)</p> Signup and view all the answers

What is the primary goal of the EU competition rules?

<p>To enable proper functioning of the internal market (B)</p> Signup and view all the answers

Which of these sanctions is NOT listed as a possible consequence for DPAG?

<p>Mandatory employee layoffs (D)</p> Signup and view all the answers

Why might DPAG's chance of a successful defense appear low according to the context?

<p>Cross-subsidization is often disapproved by the European Commission. (C)</p> Signup and view all the answers

What would be considered illegal state aid in DPAG's case?

<p>Utilizing profits from a monopoly to subsidize services (C)</p> Signup and view all the answers

What is the primary purpose of safeguard measures in the EU?

<p>To address sudden increases in imports affecting domestic industries (C)</p> Signup and view all the answers

Which of the following is NOT a requirement for applying countervailing measures?

<p>There must be an international trade agreement in place (A)</p> Signup and view all the answers

What condition must be met for anti-dumping measures to be applied in the EU?

<p>The exports must be lower than the domestic price or production cost (C)</p> Signup and view all the answers

What is a major change regarding the trade of goods under the EU–UK Trade and Cooperation Agreement?

<p>There are no tariffs or quotas for good trade. (B)</p> Signup and view all the answers

Which stakeholders' interests must be considered when imposing measures in the EU?

<p>All stakeholders including importers and customers (C)</p> Signup and view all the answers

Which of the following best describes the access to services under the Trade and Cooperation Agreement?

<p>Limited access for services, particularly in financial services. (A)</p> Signup and view all the answers

What characterizes a safeguard measure as being 'erga omnes'?

<p>It is a protective measure against all countries without discrimination (C)</p> Signup and view all the answers

What is the purpose of imposing countervailing duties by the EU?

<p>To counteract state aids that harm competition (C)</p> Signup and view all the answers

What is the expected effect on EU access to UK waters as per the fisheries provision?

<p>Access will decrease gradually over 5.5 years. (A)</p> Signup and view all the answers

Which aspect is included in the 'Level Playing Field' provisions of the agreement?

<p>Provisions covering labor rights and environmental protections. (D)</p> Signup and view all the answers

What must be proven to apply anti-dumping measures beside the act of dumping?

<p>A causal link exists between injury and dumped imports (C)</p> Signup and view all the answers

What change has occurred regarding the free movement of people under the agreement?

<p>UK citizens can travel visa-free for short stays only. (A)</p> Signup and view all the answers

Which of the following defines a 'sudden' increase in imports qualifying for safeguards?

<p>An unpredictable and sharp peak in imports (B)</p> Signup and view all the answers

What type of cooperation is addressed under the security provisions?

<p>Reduced access to law enforcement and data sharing. (B)</p> Signup and view all the answers

What governance structure was established by the Trade and Cooperation Agreement?

<p>A Joint Partnership Council to oversee the agreement. (A)</p> Signup and view all the answers

What impact does the Trade and Cooperation Agreement have on small and medium-sized businesses?

<p>Increased trade frictions due to new customs checks. (B)</p> Signup and view all the answers

Flashcards

EU Customs Union

A key feature of the EU that eliminates customs duties and charges between member states, enabling free movement of goods. It aims to facilitate trade and foster economic growth within the EU.

Free Movement of Goods

A fundamental principle of the EU Customs Union, allowing goods to move freely between member states without facing customs barriers. This helps to reduce trade costs and stimulate economic activity.

The Union Customs Code (UCC)

The central piece of EU legislation that governs the Customs Union, defining rules and procedures for managing customs activities, including trade, tariffs, and customs controls.

What drives trade facilitation internationally?

International organizations like the World Trade Organization (WTO) and World Customs Organization (WCO) work together to simplify and harmonize customs procedures globally, facilitating international trade.

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EU's exclusive competence

The EU has sole authority over the Customs Union and common commercial policy, meaning it has the exclusive right to make laws and decisions in these areas.

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International instruments' impact

Agreements like the GATT and WCO conventions influence EU customs legislation. These instruments include hard law (binding rules) and soft law (recommendations) that shape EU customs policies.

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Standardization in EU customs law

EU customs law incorporates international efforts to standardize customs procedures by using codes instead of words, which helps overcome language barriers and facilitates understanding.

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Role of the Customs Union

The Customs Union is crucial for the EU's internal market and implementing its common commercial policy. It helps ensure free trade and fosters economic development within the EU.

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Countermeasures

Actions taken by a state to respond to another state's violation of international law. They are a form of self-help.

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Retorsion

A state's response to another state's wrongful act, involving unfriendly but legal actions. Examples include cutting off economic aid or withdrawing diplomatic recognition.

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Reprisals

A state's response to another state's wrongful act, involving actions that would normally be illegal but are justified due to the prior wrongdoing.

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International Community

The collective group of states and international organizations that interact and cooperate on global issues. States are the primary members, but international organizations like the UN also play a significant role.

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Rule of Law

A system where everyone, including government officials, obeys the laws of the land. It ensures fairness, transparency, and accountability.

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International Law's Function

The primary purpose of international law is to regulate relations between states, and between states and international organisations.

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Jus Cogens

Compelling or fundamental principles of international law that cannot be violated by states, even through treaties. Examples include prohibitions against slavery, genocide, and torture.

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Mediation

A process where a neutral third party helps parties in a dispute reach a settlement or compromise. It's a non-binding intervention aimed at bringing about resolution.

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Safeguard Measures

Temporary measures to protect EU industries from sudden, severe, and unpredictable increases in imports. They apply to imports from all countries without discrimination, but developing countries with low import shares can be excluded.

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Erga Omnes

Latin term meaning 'against all'. In EU trade law, it refers to measures that apply to all countries without any discrimination.

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Conditions for Safeguard Measures

The increase in imports must be unpredictable, severe, and sudden to qualify for safeguard measures. The measures should not harm the overall interests of the EU.

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Countervailing Duties

Duties imposed on imported goods that have received subsidies from their governments. They are designed to offset the unfair advantage created by subsidies.

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Requirements for Countervailing Duties

To impose countervailing duties, the EU needs to prove the imported goods received subsidies, that the EU industry is suffering injury, and that there's a link between the injury and the subsidized imports. The measures should not harm the overall interests of the EU.

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Anti-dumping Measures

Duties imposed on imported goods sold in the EU at a price lower than their normal value in their home market or below their production cost.

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Requirements for Anti-dumping Measures

To impose anti-dumping duties, the EU needs to demonstrate dumping, injury to the EU industry, and a link between the injury and the dumped imports. The measures should not harm the overall interests of the EU.

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EU Interest

The principle that all stakeholders' interests, including importers, users, customers, and producers, are considered when implementing trade measures such as safeguards, countervailing duties, and anti-dumping duties.

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Trade in Goods

Goods are traded tariff-free and quota-free between the EU and UK, subject to rules of origin. However, customs checks and regulatory compliance add friction to trade.

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Trade in Services

The UK has limited access to services in the EU, especially financial services. Services trade does not enjoy the same tariff-free benefits as goods.

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Fisheries

EU access to UK waters will decrease over 5.5 years, with annual negotiations to adjust quotas to give the UK a larger share of fishing rights.

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Level Playing Field

Provisions ensure fair competition between the EU and UK, covering labor rights, environmental protections, and state aid. Mechanisms exist to address significant regulatory divergence.

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Mobility

Free movement of people ended, but UK citizens can travel visa-free to the EU for short stays (90 days). There are no general rights to live and work in each other's territories.

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Security and Judicial Cooperation

The agreement includes provisions for cooperation in law enforcement, data sharing, and security measures, though with reduced access compared to EU membership.

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TCA Impact - Increased Trade Frictions

New customs checks and documentation requirements, especially impacting small and medium-sized businesses, have increased trade friction.

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TCA Impact - Supply Chain Adjustments

Businesses need to adapt to new trade rules and may reconfigure supply chains to account for the agreement's impact.

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Cross-subsidization

A practice where profits from one business are used to support another business, often at a lower price. This can distort competition.

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Fidelity Rebates

Discounts or incentives offered to customers who exclusively buy a certain company's products. This can discourage competition and limit customer choices.

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EU Competition Laws

Rules aimed at ensuring fair competition within the European Union by preventing practices that restrict competition, like monopolies, anti-competitive agreements, and mergers that harm competition.

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Dominant firm

A company with significant market power that influences market conditions and can potentially hinder competition.

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Sanctions for Anti-competitive Practices

Penalties imposed on companies that violate competition laws, including fines, cease and desist orders, and structural changes.

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Cease and Desist Order

A legal order requiring a company to stop engaging in a specific anti-competitive practice. This can be issued by regulatory bodies like the European Commission.

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State Aid

Financial assistance provided by a government to a company. This can be a concern if it distorts competition and gives an unfair advantage.

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Antitrust

A set of rules designed to prevent companies from unfairly dominating the market and harming competition. This can involve stopping cartels or companies abusing their power.

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Merger Control

A process where governments assess potential mergers or acquisitions to see if they could harm competition. This helps prevent powerful companies from forming that could control too much of the market.

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Leniency Program

A program where companies involved in illegal practices, like cartels, can get reduced or even no fines if they cooperate with authorities. This encourages whistleblowing and helps fight anti-competitive practices.

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Horizontal Agreements

Anti-competitive agreements between companies that compete at the same level in the market. Examples include price fixing or market sharing.

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Vertical Agreements

Anti-competitive agreements between companies at different levels in the supply chain, like a manufacturer and a retailer, that limit competition.

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What is a cartel?

A group of companies that secretly agree to work together to control prices or limit output. They can hurt competition by artificially raising prices and reducing consumer choice.

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Abuse of Dominance

When a company with a strong position in the market uses unfair practices to squeeze out competitors or harm consumers, such as charging excessive prices.

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Study Notes

Business Law in the EU

  • UN created in 1945 after WWII to maintain global peace. The UN has 193 members (excluding Vatican City and Palestine).
  • The UN Security Council has 5 permanent members (winners of WWII: Russia, France, UK, USA, China) with veto power, and 15 non-permanent members.
  • The UN General Assembly debates significant topics, security, peace, and budgetary matters. The current Secretary-General is Antonio Guterres.
  • The WTO (World Trade Organization) has 166 members (with China joining in 2001), focused on international trade relations.
  • International law governs the conduct of states, international organizations, and their interactions.
  • Historically, only states had international legal personality and could bring international claims; now, intergovernmental organizations and transnational companies, and individuals are included in the framework.

International Law

  • International law consists of rules and principles of general application, dealing with states' conduct, international organizations and the interaction between them.
  • General international law applies to a wider range of states based on customary international law and multilateral treaties.
  • Regional international law applies within a group of states (e.g., EU).
  • Particular international law applies only to a few states.
  • Harmonization of legal systems is occurring increasingly, particularly in Europe, reflecting a powerful, efficient bureaucracy.

The International Community

  • States are sovereign and equal members of the international community.
  • International organizations (like the UN) are also considered members.
  • International law is essential for regulating state-to-state and state-to-IO relations.
  • International law (lacking a supreme authority) relies heavily on national legal systems and self-help.
  • Countermeasures (retorsions and reprisals) are tools states use to respond to international law violations by other states, which can involve the community of states as a whole.
  • Civilian populations may be affected by international conflicts.

The EU Institutional Framework

  • The EU has several key institutions: the European Commission (executive), the European Parliament (legislative), the Council of the European Union (legislative), the European Council (executive), and the Court of Justice of the EU (judiciary).
  • The High Representative of the Union for Foreign Affairs and Security Policy (HRVP) is the EU's Chief Diplomat. The current HRVP is Josep Borrell Fontelles.
  • The European Parliament, composed of 720 Members of European Parliament (MEPs), is directly elected by EU citizens.
  • The European Commission is an independent institution. Commissioners cannot receive instructions from member states. Commissioners are responsible for proposing legislative acts, managing the EU budget, and representing the EU in the international community.

EU Competences

  • Allocation of competences between the EU and member states is governed by principles like subsidiarity and proportionality.
  • The Treaty on the Functioning of the EU (TFEU) defines three types of competences for the EU.

The EU Ordinary Legislative Procedure

  • The most important type of law-making procedure within the EU.
  • The procedure starts with a proposal from the European Commission.
  • The European Parliament and the Council of the European Union (through 2 readings) discuss and make amendments, if necessary.
  • A conciliation committee is involved in cases of disagreement between the Parliament and the Council.

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Business Law in the EU PDF

Description

Test your knowledge on the fundamental aspects of international law, including principles, countermeasures, and the EU Customs Union. This quiz covers key concepts, important treaties, and legislation that play a significant role in the legal framework governing international relations.

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