Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,*,*,*,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,understand the jurisdiction in international legal disputes,get familiar with the legal recourse in resolving international disputes,Text:Legal System in International Business,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,and criminal.,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.,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.,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.,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.,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.,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.,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.,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),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.,Many international business people prefer a settlement through,arbitration,rather than,lawsuit,because of the cost,delays and aggravation involved.,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.,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,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,Reading Comprehension(1),Explain the following terms in your own words,common law,precedent,civil law,act of God,jurisdiction,arbitration,mediation,Lawsuit,Reading 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.,Questions for Discussion,Discuss the advantages and disadvantages of common law and code law.,Discuss this statement:,“The n