Post on 04-Apr-2018
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Welcome toLEGAL ASPECTS OF
INTERNATIONAL TRADE
Facilitator: Dr. Fred Koch
Session: Winter 2013
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Todays Agenda
1. Complete name cards & attendance
sheet
2. Handout and review course syllabus
3. Brief overview of course
4. Major legal systems of the world
5. Overview of the Canadian legal system
6. Sources of Canadian law
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Distribution and Reviewof the Course Syllabus
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Overview of the Course
Course will look at a variety of areas
of law that have a heavy impact onforeign trade with a view to alertingyou to when you need to do researchor retain legal counsel to advise you
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Overview of Course (contd)
Some of the areas of law we will cover
include:
1. The various legal systems in the world
2. The sources of Canadian domestic law
3. The law of contract in Canada
4. Domestic and foreign sale of goodscontracts
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Overview of the Course (contd)
5. Anti-competition laws in Canada
6. The law concerning privacy of
information7. Product liability law in Canada
8. Intellectual property (patents,
trademarks, copyright)
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Overview of the Course (contd)
While many of the concepts relate
primarily to Canadian law, the concepts
are similar in the law of the United
States, the United Kingdom, Australia,
New Zealand, and otherCommonwealth countries
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SLATE Overview
The SLATE website for the course
is your guide to class and examination
preparation. Students are expected to
complete the tasks on the course site
before each class throughout the term
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SLATE Overview (contd)
Go to that site and well gothrough how it works
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SLATE Overview (contd)
Step # 1:
Start with the Course Content
webpage
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SLATE Overview (contd)
Step # 2:
Left mouse click on Lesson
Modules
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SLATE Overview (contd)
Under the Lesson Modules youll
find a summary of each week. It
gives you an overview of the
lesson, the lesson objectives, a
link to the readings for the week, and
a description of the homework forthe week to be done in preparation
for forthcoming the class
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SLATE Overview (contd)
Under the heading RESOURCES in
the lesson module, you will find the
title Readings. Click on the link and
it will take you to the readings for the
week
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SLATE Overview (contd)
Under each Lesson Module for each
week you will also find Links to various
websites that contain useful informationrelated to the course
Some of these sites will be referenced inclass
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SLATE Overview (contd)
Step # 3:
Each week do the tasks listed under theheading ASSIGNMENT in the Lesson
Module. This is your weekly pre-class
homework.
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SLATE Overview (contd)
Step # 3 (contd):
Under the Assignment section, it includesdoing the weekly reading, doing the Review
Your Understanding questions, and doing
the Apply Your Knowledge case problems
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SLATE Overview (contd)
Step # 3 (contd):
Review Your Understanding
If go back to the homepage for the course,
you will find a sub-file labeled Review Your
Understanding. In that file, each week, there is
a list of questions about the materials (e.g.,
world legal systems, Cdn. Legal system, and
world trade organizations for week # 1)
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SLATE Overview (contd)
Review Your Understanding
You working out the answers to the
questions is a task designed to make surethat you understand basic content only.
Make sure you figure out and write down
the answers to each question each week!This is part of the homework you must do
each week in the course to prep for class
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SLATE Overview (contd)
Step # 3 (contd):
Go back to home page and open sub-filelabeled Apply Your Knowledge.
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SLATE Overview (contd)Step # 3 (contd)
Starting in week # 2, there are case
problems with questions. You need to work
through those problems and write down answers
to the questions. Compare those answers to those
of your classmates. If you are uncertain about a
particular answer, you may come e-mail the
instructor to schedule an appointment to discuss
the question and the answer. This is part of your
weekly homework.
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SLATE Overview (contd)
Expected to Demonstrate Problem-
solving Learning
In this course you will be expected to not
only demonstrate knowledge of content,
but an ability to apply it to new situations.
What does that mean?
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SLATE Overview (contd)
1. Through your readings and in class you will learnabout legal principles that apply in business
2. Having learned a legal principle you will beshown how to apply it to a new situation to
answer a question
3. You will then be asked to apply it to a differentsituation without instructor assistance and justify
your analysis using the concepts you have learned.
You will be graded on this process.
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SLATE Overview (contd)
Problem-Solving Thinking (contd)
To assist in this regard, go to CourseContent Home page and click on Apply
Your Knowledge
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SLATE Overview (contd)
Need to do and understand the Apply
Your Knowledge case problems
Preparation for assignments and
examinations in course. Will be expected
to do this sort of work
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Conclusion of Overview
Questions about (1) course
expectations, (2) course topics, (3)
course resources?
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Terminology
Why may the term international business
law be misleading?
Because it implies there is a single body
of international law that deals with
business transactions or trade
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Terminology (contd)
If I want to conduct international business
from Canada what law must I be
concerned about?
1. Canadian domestic law
2. The domestic law of each foreigncountry I am doing business in
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Terminology (contd)
3. Any applicable international treaties or
conventions
4. International trade customs and usage
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Only True International Law
Only truly international law is the law of
the sea. Why?
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The Development of National LegalSystems
In Western Europe,
most legal systems
developed in the
period of kingdoms
(between approx.
1200-1850 A.D.)
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The Development of National LegalSystems (contd)
The laws only applied as far as the
boundaries in which the kings subjectsresided. This was the foundation for
national systems of law in Western
countries.
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National Laws Not Entirely Unique
Although each kingdom developed its own
body of laws, it was often patterned after
one of five (5) major systems of law found
in the world
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Major Types of Legal Systems in theWorld
What are the five (5) major types of legal
systems in the world?
1. The Civil law system with roots inRoman law (circa 600 A.D.)
2. The common law system with rootsin England (circa 1500 A.D.)
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Major Types of Legal Systems in theWorld (contd)
3. Islamic law system with roots in the
Quran (circa 700 A.D.)
4. Socialist law system with roots in civil
law and Marxism (circa 1930s)
5. Customary law system with roots in
local cultures (various periods)
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The Term Civil Law
Term civil law used in two (2) very different
ways, namely:
1. To distinguish a nations body of law that is
not criminal law from that which is criminallaw
2. To identify the nations entire system of law
as based on Roman civil law, as opposed to
English common law
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The Term Civil Law(contd)
We will use civil law in contrast to
criminal law, and Civil law in contrast to
common law
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The Civil Law System
In 6th century A.D., Roman EmperorJustinian ordered the creation of a
comprehensive written code of laws for
the empire (Justinians Code).
Why was a written code possible in the
Roman empire of the 6th
century A.D.?
http://images.google.ca/imgres?imgurl=http://www.usu.edu/markdamen/1320Hist%26Civ/slides/01hist/justinian.jpg&imgrefurl=http://www.usu.edu/markdamen/1320Hist%26Civ/chapters/01HIST.htm&usg=__Vaqb-O7W7pQQXSDrQ5xwAZb4YIw=&h=1074&w=709&sz=492&hl=en&start=6&um=1&tbnid=AFg6fbuei5kLIM:&tbnh=150&tbnw=99&prev=/images%3Fq%3Dphoto%2Bof%2Bemperor%2Bjustinian%26hl%3Den%26sa%3DN%26um%3D17/29/2019 Sources of Law - Week _ 1 (2013)
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The Civil Law System (contd)
With a Civil law system, all of
the laws or principles are
written down in acomprehensive code. What
is required to learn and know
that code?
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The Civil Law System (contd)
What are some advantages to a code
system of laws?
1. The law is generally clear on a topic
2. The law does not change much overtime
3. Judges have limited discretion, mustsimply apply the law as written. Mainrole is interpretation.
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The Civil Law System (contd)
After being lost in the Dark Ages of Europe(700-1000 A.D.), Justinian Code discovered
by Catholic scholars in Italy in the 1100s.
It became the foundation of Roman CatholicChurch law in the Middle Ages (1200-1500
A.D.). (germantownacademy.org)
http://images.google.ca/imgres?imgurl=http://www.germantownacademy.org/Academics/MS/7th/middleages/perg/adrienneo/icons/monk.jpg&imgrefurl=http://www.germantownacademy.org/Academics/MS/7th/middleages/perg/adrienneo/adrienneo.html&usg=__P_jlRF3JiAkKtCZeGdiEUuCSABY=&h=720&w=450&sz=19&hl=en&start=17&tbnid=7I7RMltYqDrP3M:&tbnh=140&tbnw=88&prev=/images%3Fq%3Dmedieval%2Bmonasteries%26gbv%3D2%26hl%3Den7/29/2019 Sources of Law - Week _ 1 (2013)
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The Civil Law System (contd)
Through the Catholicclergy, Roman
Civil law was gradually
introduced to and became
the foundation for the
secular law systems of
kingdoms in Western Europe
(e.g., Spain,Portugal, France,
Scotland)
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The Civil Law System (contd)
When kingdoms such as Spain,
Portugal, and France colonized
the New World, Africa, and
parts of Asia, they brought the
Civil law with them(rootsweb.ancestry.com)
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The Civil Law System (contd)
In North America, the Spanish colonized
areas that are now Mexico and Central
America such as Costa Rica,
Nicaragua, Panama, etc. which are
Civil law countries
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The Civil Law System (contd)
The French colonized the
areas now known as the
American state of
Louisiana and the
Canadian province of
Quebec (originally calledNew France)
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The Civil Law System (contd)
To this day, these areas of North
America have a primarily Civil law
system (except in criminal matters)
(E.g., the Province of Quebec, the
State of Louisiana)
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The Common Law System
In 1066 A.D.,William, Duke of
Normandy
(northwesternFrance), crossed
the English channel
and conquered what is
now England
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The Common Law System (contd)
One of the first things King William I
wanted to do in England was figure out the
nations wealth. To do this he
ordered prominent local people to meet
with royal officials and report on what
every person in the community
possessed (e.g., name, number ofhorses, cows, sheep, etc.)
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The Common Law System (contd)
It is believed that this led to the
development of the jury system.
Royal judges traveled fromvillage to village in circuits.
Anyone in a village with a case
appeared before the judge and a
group of locals called a jury.
http://images.google.ca/imgres?imgurl=http://www.costumes.org/History/victorian/men/vanityfair1876.jpg&imgrefurl=http://www.costumes.org/History/100pages/timelinepages/1870s1.htm&usg=___FdgHJxTIdel27ZSjJAKlXtg9UY=&h=504&w=302&sz=26&hl=en&start=14&tbnid=BtGUt1g8t7h84M:&tbnh=130&tbnw=78&prev=/images%3Fq%3D%2522english%2Bjudge%2522%26gbv%3D2%26hl%3Den%26sa%3DG7/29/2019 Sources of Law - Week _ 1 (2013)
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The Common Law System (contd)
Local people were compelled by royal
order to sit on juries because they
personally knew what the dispute wasabout. Also, they would inform the judge
about local customs for dealing with these
types of situations based on oral histories
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The Common Law System (contd)
Sometimes the traveling judges (about 8
to 12) would take a local custom and turn
it into a general rule back in London onceoff the circuit. These rules became
common to the whole kingdom, and
became binding royal laws, not merelycustoms or traditions
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The Common Law System (contd)
In the common law system, previous
decisions by judges in like situations are
binding on judges at a lower or equallevel. This is called the doctrine of
precedent or stare decisis (Latin for
stand by decision)
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The Common Law System (contd)
In the common law system, the bindingeffect of the law comes from the fact that
a judge had previously decided it, not
from the fact that a legislature enacted awritten code of law. Thus, in the common
law system, judges make law through
their decisions in cases and this body oflaw grows as more decisions are made
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The Common Law System (contd)
What are some advantages of the
common law system?
1. Certainty based on precedent
2. Laws are less politically influenced
3. Law more flexible as societychanges (advantage for business)
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The Common Law System (contd)
Disadvantages include:
1. Not a comprehensive system
since it developed piece by piece
2. Not easily accessible and
understandable to lay peoplebecause based on reading
judges decisions in cases
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The Common Law System (contd)
The English common law was well
established by about the mid-1600s
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The Common Law System (contd)
If you wish to see what a common law
judges decision looks like go to the
website:
http://scc.lexum.org/decisia-scc-csc/scc-c
sc/en/nav.do
Select a case and open it
Th C S ( d)
http://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.dohttp://scc.lexum.org/decisia-scc-csc/scc-csc/en/nav.do7/29/2019 Sources of Law - Week _ 1 (2013)
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The Common Law System (contd)
When the English empire began to
develop, England exported the commonlaw to many parts of the world including:
1. U.S.A. (except Louisiana)
2. Canada (except Quebec)3. Caribbean Islands
4. Parts of Africa such as South Africa
5. Australia & New Zealand
6. Singapore
7. India
Th R l f C difi d L i C
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The Role of Codified Law in CommonLaw System
Brief discussion of statute law and how
the English Parliament is the supreme
law maker in that kingdom (ultra vires
doctrine)
http://www.youtube.com/watch?v=5xUy
2inkGHQ
http://www.youtube.com/watch?v=5xUy2inkGHQhttp://www.youtube.com/watch?v=5xUy2inkGHQhttp://www.youtube.com/watch?v=5xUy2inkGHQhttp://www.youtube.com/watch?v=5xUy2inkGHQ7/29/2019 Sources of Law - Week _ 1 (2013)
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Islamic Law System
Islamic law began to develop in the
Middle East around 700 A.D. and was
based on the Quran
It spread from the Middle East to
northern Africa, Iran, Afghanistan, andIndonesia
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Islamic Law System (contd)
Unlike the Civil law and the common law
systems, which are today primarily
secular systems, Islamic law is stillheavily tied to Islam (the Quran in
particular), and thus, tends not to change
to the same extent with societal
developments
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Islamic Law System (contd)
Also, the split in Islam, and the local
culture influences, tend to lead to more local
variation in the laws application byIslamic courts. Thus, need to research
law in each country carefully before
doing business in countries whose law is
based on the Islamic system.
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Islamic Law System (contd)
More restrictions on contractual
arrangements than other systems
because of Quran based doctrines
against things such as interest and
unjustified profits
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Socialist Law System
Developed in SovietRussia during the
1920s and 1930s, then
exported with
Communism after WWII to
countries in Eastern Europe,
parts of Africa, and Asia
(mainly Vietnam, China, and
North Korea)
http://images.google.ca/imgres?imgurl=http://imagecache2.allposters.com/images/pic/CLI/SOV003~The-Republic-of-Social-Soviet-Union-for-Country-and-Urban-Worker-Posters.jpg&imgrefurl=http://www.allposters.com/-sp/The-Republic-of-Social-Soviet-Union-for-Country-and-Urban-Worker-Posters_i1752005_.htm&usg=__8TLaaAP46Sfmfg_7oI3qcQrpUpo=&h=425&w=277&sz=36&hl=en&start=25&tbnid=wq7QkAVFxGfSHM:&tbnh=126&tbnw=82&prev=/images%3Fq%3DSoviet%2BUnion%26start%3D21%26gbv%3D2%26ndsp%3D21%26hl%3Den%26sa%3DN7/29/2019 Sources of Law - Week _ 1 (2013)
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Socialist Law System (contd)
Based on a Civil law system with an
overlapping layer of Marxist-Leninist
ideology
Gradually starting to disappear as
former communist countries become
more capitalistic in nature
C L l S
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Customary Legal Systems
Laws are in large measure codified,but very much linked to ancient
cultural values and moral principles
More general and less certain than
Western legal rules, which may
present challenges to Westernbusinesses (need for research)
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Customary Legal Systems (contd)
Found in countries such as China,India, and parts of Africa
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Major Trading Partners of Canada
What countries are Canadas top
trading partners (apart from the U.S.)?
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Legal systems exercise for seven (7)
major trading partners
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Canadian Constitution
To understand Canadian legal system,need to understand two constitutional
documents. What are they?
1. Constitution Act, 1867
2. Canadian Charter of Rights &Freedoms(1982)
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Nature of a Constitutional Law
Supreme and founding law of a country
Overrides all other laws of that country ifthere is a conflict
Who decides if there is a conflict?
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Nature of Constitutional Law
Cannot structure a functional government
without constitution. Why?
Sets out (1) powers of government, and
(2) the legal rights of the people
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Key U.S. Constitutional Documents
What are the two (2) key U.S.constitutional documents?
1. The Constitution of the UnitedStates of America(1776) Articles
8-10 deal with powers of federal govt
and state govts (seewww.constitution.org/constit_.htm)
Key U S Constitutional Documents
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Key U.S. Constitutional Documents(contd)
2. The Bill of Rights(1791) (see
www.constitution.org/constit_.htm, and then click on the words Bill
of Rights at the top)
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Sources of Canadian Law
Review and discuss handouton the twoprincipal sources of Canadian law
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Highest Court in Canada
Supreme Court of Canada:
J d d L
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Judge-made Law
Nine (9) judges sit as a panel on S.C.C.:
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Conclusion of Cdn. Legal System
Are there any questions about how the
Canadian legal system operates?
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U.S. and Commonwealth Countries
Discuss U.S. and other Commonwealth
countries such as Australia
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International Organizations
All these organizations are designed to
pressure governments into harmonizing
their laws on business and trade. Have
met with limited success because of the
doctrine of sovereignty
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International Organizations
Discuss W.T.O. and General Agreement
on Tariffs and Trade (GATT)
N.A.F.T.A. and N.A.F.T.A. trade panel
E.U. and E.U. Trade Commission
C
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Conclusion
Questions about the readings on major trade
organizations or trade treaties can be raised
next week, once done the readings
Next week look at forms of business
organization
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The end!
for now