国际商务的环境Chapter 8 Legal environment facing international business

Key terms (2)
provision 法律条款 dispute 纠纷 act of God 不可抗力 jurisdiction 司法权 arbitration 仲裁 litigation 诉讼 lawsuit 诉讼 tribunals for arbitration 仲裁法庭 mediation 调解
Legal commercial problems between citizens of different countries must be handled either in the courts of the country of one of the parties involved or through arbitration.
Because it established the original intent of the parties, an arbitration clause should be included in all international contracts. This alone may be sufficient to convince the parties to arbitrate whether or not the clause is legally enforceable.
Summary of key points (1)
There are two main legal systems in the world, common law system and the civil law system. The basis for the common law system are tradition, past practices, and legal practices, and the legal precedent; while the civil law system is based on an all-inclusive system of written rules of law.
Bases for legal systems Common law---countries which have at one time
been under English influence
The basis for common law is tradition, past practices, and legal practices, and the legal precedent set by the courts through interpretations of statutes, legal legislation, and past rulings.
Civil law---the majority of the countries in the world
Code law is based on an all-inclusive system of written rules (codes) of law. Under code law, the legal system if generally divided into three separate codes: commercial, civil, ag Comprehension (2)
Paraphrase the following sentence: Cooperation and definite desire to be judicious in
foreign legal problem have led to the practice of foreign court judging disputes on the basis of the law of another country or state whenever applicable. Even with a specific clause establishing jurisdiction, if the contractual events are not, in effect, entered into or executed within the state indicated, courts have been known to disregard the jurisdictional clause and apply different rules in determining which law governs.
Text : Legal System in International Business
Jurisdiction in international legal disputes
One of the problems of international marketing is determining which legal system will have jurisdiction when commercial disputes arise.
Reading Comprehension (1)
Explain the following terms in your own words
common law precedent civil law act of God
jurisdiction arbitration mediation Lawsuit
In the performance of a business contract, the differences in the two legal systems may cause significant difficulties to the business people.
Summary of key points (2)
Key terms (1)
common law 普通法（英美法） civil (code) law 大陆法（成文法） roman law 罗马法 precedent 判例 statute 成文法 commercial law 商法 civil law 民法 criminal law 刑法 legislation 立法权
Questions for Discussion
Discuss the advantages and disadvantages of common law and code law.
Discuss this statement: “The national security that our export control laws seek to protect may be threatened by the resulting lack of international competitiveness of Chinese firms.”
In order to avoid the problems when the parties involved in a arbitration fail to honor the awards, many countries make laws or sign international conventions to enforce the awards of the arbitrations.
understand the jurisdiction in international legal disputes
get familiar with the legal recourse in resolving international disputes
Text : Legal System in International Business
Over 136 countries have signed a UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards which binds them to uphold foreign arbitrational awards.
Chapter 8
Legal Environment Facing International Business
Learning Objectives
form a general picture of the two world legal systems in your mind
tell the differences between common law and code law system
Text : Legal System in International Business
Legal recourse in resolving international disputes
Arbitration The usual arbitration procedure is for the parties involved to select a disinterested and informed party as referee to determine the merits of the case and make a judgement that both partie agree to honor.
Jurisdiction over private, international legal disputes is generally determined in one of three ways: 1) on the basis of jurisdictional clauses included in contracts, 2) on the basis of where a contract was entered into, or 3) on the basis of where the provisions of the contract were performed.
Many international business people prefer a settlement through arbitration rather than lawsuit because of the cost, delays and aggravation involved.
Tribunals for arbitrationThe Inter--America Commercial Arbitration Commission, The Canadian-American Commercial Arbitration Commission, The London Court of Abitration, The American Arbiration Association, The International Chamber of Commerce
Text : Legal System in International Business
Enforcement of arbitration clause
In most countries, arbitration clauses are recognized by the courts and are enforceable by law within those countries.
There is no international commercial law when international commercial disputes arise, so the problems must be settled under the laws of one of the countries concerned.