Slides developed byLes Wiletzky Copyright © 2006 by Pearson Prentice-Hall. All rights reserved
PowerPoint Slides to AccompanyESSENTIALS OF BUSINESS AND
ONLINE COMMERCE LAW1st Edition
by Henry R. Cheeseman
Chapter 25International and Comparative Law
Chapter 25International and Comparative Law
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International Law (1 of 2)
Law that governs affairs between nations Law that regulates transactions between
individuals and businesses of different countries
No single legislative source of international law All countries of the world (and numerous international
organizations) are responsible for enacting international laws
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International Law (2 of 2)
No single world court responsible for interpreting international law
Several courts or tribunals hear and decide international legal disputes of parties that agree to appear before them
No world executive branch that can enforce international laws Nations do not have to obey international law enacted by
other countries or international organizations
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Sources of International Law Sources of international lawSources of international law – those things that
international tribunals rely on in deciding international disputes
Article 38(1) of the Statute of the International Court of Article 38(1) of the Statute of the International Court of JusticeJustice lists four sources of international law: Treaties and conventions Custom General principles of law Judicial decisions and teachings
Sources of international lawSources of international law – those things that international tribunals rely on in deciding international disputes
Article 38(1) of the Statute of the International Court of Article 38(1) of the Statute of the International Court of JusticeJustice lists four sources of international law: Treaties and conventions Custom General principles of law Judicial decisions and teachings
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Treaties and Conventions
TreatiesTreaties The first source of
international law Agreements or contracts
between two or more nations that are formally signed by an authorized representative and ratified by the supreme power of each nation
TreatiesTreaties The first source of
international law Agreements or contracts
between two or more nations that are formally signed by an authorized representative and ratified by the supreme power of each nation
ConventionConvention Treaty that is sponsored by
an international organization e.g., United Nations
Conventions normally have many signatories
ConventionConvention Treaty that is sponsored by
an international organization e.g., United Nations
Conventions normally have many signatories
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Custom (1 of 2)
The second source of international law
Custom describes consistent, recurring practices followed by two or more nations when dealing with each other over a period of time that have become recognized as binding
Customs that have been recognized for some period of time are often codified in treaties
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Custom (2 of 2)
Two elements must be established to show that a practice has become a custom:
1. Consistent and recurring action by two or more nations over a considerable period of time
2. Recognition that the custom is binding because of legal obligation
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General Principles of Law (1 of 2)
The third source of international law
Consist of principles of lawprinciples of law recognized by civilized nations
These are principles of law that are common to the national lawnational law of the parties to the dispute
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General Principles of Law (2 of 2)
The general principles of law may be derived from: Constitutions Statutes Regulations Common Law Other Sources of National Law
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Judicial Decisions and Teachings The fourth source of international law
Consist of judicial decisions and teachingsjudicial decisions and teachings of the most qualified legal scholars of the various nations involved in the dispute
International courts are not bound by the doctrine of stare decisisstare decisis
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The United States and Foreign Affairs(1 of 3)
The Constitution gives the federal government most of the power to deal with foreign affairs of this country: Foreign Commerce ClauseForeign Commerce Clause – Article I, Section 8, clause 3
vests Congress with the power “to regulate commerce with foreign nations.”
Treaty ClauseTreaty Clause – Article II, Section 2, clause 2 states that the president “shall have power, by and with advice and consent of the Senate, to make treaties, provided two-thirds of the senators present concur.”
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The United States and Foreign Affairs(2 of 3)
Any state or local law that unduly burdens foreign commerce is unconstitutional under the Foreign Commerce ClauseForeign Commerce Clause
The president is the agent of the United States in dealing with foreign countries
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The United States and Foreign Affairs(3 of 3)
Under the Treaty ClauseTreaty Clause, only the federal government may enter into treaties with foreign nations
Under the Supremacy ClauseSupremacy Clause of the Constitution: Treaties become part of the “law of the land” Conflicting state or local law is void
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The United Nations (UN) International organization created by
multinational treaty in 1945
Goals of the United Nations (U.N.): Maintain peace and security in the world Promote economic and social cooperation Protect human rights
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Governance of the United Nations(1 of 3)
The United Nations is governed by:
The General AssemblyThe General Assembly Composed of all member nations The legislative body of the U.N. Adopts resolutions which have limited force Resolutions are usually enforced through
persuasion and sanctions
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Governance of the United Nations(2 of 3)
The Security CouncilThe Security Council Composed of 15 member nations
Five are permanent members Ten are chosen for two-year terms
Primarily responsible for maintaining international peace and security
Has authority to use armed forces
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Governance of the United Nations(3 of 3)
The SecretariatThe Secretariat Administers the day-to-day operations of the
United Nations Headed by the Secretary-GeneralSecretary-General, who is
elected by the General Assembly The Secretary-General may refer matters that
threaten international peace and Security to the Security Council and use his office to help solve international disputes
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International Court of Justice The judicial branch of the United Nations Also called the World CourtWorld Court Located in The Hague, the Netherlands Only nations (not individuals or businesses) may
have cases decided by this court A nation may seek redress on behalf of an
individual or a business that has a claim against another country
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UN Agencies The U.N. is also composed of various
autonomous agencies that deal with a wide range of economic and social problems: UNESCO UNICEF IMF World Bank International Monetary Fund IFAD
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Regional International Organizations(1 of 6)
The European Union (EU)The European Union (EU) Comprises many countries of Western and
Eastern Europe
Created to promote Peace and security Economic, social, and cultural development
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Regional International Organizations(2 of 6)
The European Union (EU)The European Union (EU) (continued)
The EU treaty creates open borders for trade between members
The EURO is the single monetary unit European Court of Justice – the judicial
branch of the EU European Court of First Instance (CFI)
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Regional International Organizations(3 of 6)
The North American Free Trade Agreement The North American Free Trade Agreement (NAFTA)(NAFTA)
An international treaty that creates a regional free-trade zone consisting of the United States, Canada, and Mexico
Eliminates or reduces most of the duties, tariffs, quotas, and other trade barriers between the members
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Regional International Organizations(4 of 6)
Latin, Central, and South American Latin, Central, and South American Economic CommunitiesEconomic Communities
Central American Common Market MERCOSUR Common Market Caribbean Community Andean Common Market
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Regional International Organizations(5 of 6)
African Economic CommunitiesAfrican Economic Communities Economic Community of West African States Economic and Customs Union of Central
Africa East African Community Organization of African Unity African Economic Community
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Regional International Organizations(6 of 6)
Asian Economic CommunitiesAsian Economic Communities Association of South East Asian Nations
(ASEAN)
Middle Eastern Economic CommunitiesMiddle Eastern Economic Communities Organization of Petroleum Exporting
Countries (OPEC) Gulf Cooperation Council
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World Trade Organization (WTO) International organization of more than 130
member nations Created to promote and enforce trade
agreements among member nations WTO members have entered into many trade
agreements among themselves By enforcing trade agreements among its
members, the WTO has become the world’s most important trade organization
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WTO Dispute Resolution One of the primary
functions of the WTO is to hear and decide trade disputes between member nations
One of the primary functions of the WTO is to hear and decide trade disputes between member nations
Panel
Dispute Settlement Body
Appellate Body
Panel
Dispute Settlement Body
Appellate Body
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National Courts Decide International Disputes (1 of 3)
The majority of commercial litigation involving international business transactions are heard by national courtsnational courts of individual nations
Judicial ProcedureJudicial Procedure Choice of forum clauseChoice of forum clause – designates the judicial or arbitral
forum that hear and decide the case Choice of law clauseChoice of law clause – designates the law to be applied by
the court or arbitrator in deciding the case
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National Courts Decide International Disputes (2 of 3)
Act of State DoctrineAct of State Doctrine Judges of one country cannot question the
validity of an act committed by another country within that other country’s borders
Based on the principle that a country has absolute authority over what transpires within its own territory
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National Courts Decide International Disputes (3 of 3)
The Doctrine of Sovereign ImmunityThe Doctrine of Sovereign Immunity A doctrine that states that countries are granted
immunity from suits in courts of other countries Foreign Sovereign Immunities ActForeign Sovereign Immunities Act – exclusively
governs suits against foreign nations that are brought in federal or state courts in the United States
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International Law Jewish Law and the Torah
Islamic Law and the Koran
Hindu Law – Dharmasastra
Jewish Law and the Torah
Islamic Law and the Koran
Hindu Law – Dharmasastra
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