International Law for Business

International Law: A. Ashta1International Law for Business3. Major Western Legal TraditionsArvind AshtaGroupe ESC Dijon-BourgogneCourse presented at American Business School, ParisGroupe IGS2002Based largely on: Carolyn Hotchkiss: International Law for Business, McGraw Hill Intnl, 1994International Law: A. Ashta2OutlineIntroductionCommon Law•CanadaCivil Law•West GermanySocialist LawConclusionInternational Law: A. Ashta3IntroductionLegal tradition: •Different ways of thinking about law.•Underlying attitudesLaw depends on economics: •With collapse of socialist economies, socialist legal tradition my collapseInternational Law: A. Ashta4Common LawEngland and its colonies•US, Canada, Australia, New Zealand, India•Not ScotlandOrigin of idea•Travalling judges apply law uniformlySources of Common LawLegislation: blanket rulesCase Law: specific circumstancesTradition and custom: influential roleInternational Law: A. Ashta5Case LawPrinciples deduced from rulesApply principles to new facts•Ensures legal evolutionSimilar disputes –similar resultsPrecedence•Earlier case from a higher court in same jurisdiction•Earlier cases from same court•Leads to stability•Note: SC of one State: no authority over SC of another StateLegislation over-rides earlier case lawInternational Law: A. Ashta6Canadian Legal System(except Quebec)Constitution1867 BNAA1982 Constitution and Charter of Rights and FreedomsBicameral Parliament•Commons•SenatePeopleCommonsPMCabinet Minister of JusticeJudgesInternational Law: A. Ashta7Canadian Common LawCase Law•Judge legislates creatively•But only if there are gaps•Otherwise, applies old principlesLegislative Supremacy•Law supercedes previous case law•Governs subsequent cases•Parliament can override the Charter of RightsCustoms and Convnetion•Consistent practiceRoyal prerogative (notional)•Through Governor General and Lt. GovernorsInternational Law: A. Ashta8CanadaLawyers•3 years LL.B. after B.A.•1 year articles of clerkship•Admission to barRegulatory Environment•National and Provincial•Ministers, Councils, Boards, Commissions•Disputed area: Review of Admin. Action•Legislation tries to prohibit courts•Courts try to enterContracts•Offer, Acceptance and consideration•Writing (only in some provinces)International Law: A. Ashta9Petrogas v. WestcoastFacts•P sells gas to W •«take or pay» clause: •minimum quantity to be paid for•Price control: •government increases priceDispute•P: We invested based on contract: W should pay•W: Terms have changed: old contract illegalCourt agrees with W•Unforeseen event (price control)•No provision made for such event•Illegality is neither temporary nor trifleInternational Law: A. Ashta10Civil Law TraditionWhere•Europe, South America•Some parts of Asia, Middle East•Quebec, LousianaCodes•Large comrehensive grouping of statutesOrigin•Romans took their laws with them when they conquoured new land•Justinian Cde (Byznatine) 6thCentury (revival 11thcentury)•National codes: Scandinavia: 17th, 18th century•Napoleonic code (1804) exported by FranceInternational Law: A. Ashta11French v. German CodesNapoleonic Code (1804)•Simplify law: comprehensible to people•Security of Private property•Freedom to contract•Value of traditional familyGermanic Code (1896)•Scientific reasoning to law•More detailed and specific code•Influenced China, Japan, E. and Central EuropeInternational Law: A. Ashta12German Civil Law(1989-90 Extended to E. Germany)Federal systemdivision of political authority•Two houses•Bundestag: directly elected, elects Chancellor, President (nominal)•Bundesrat: State representativesdivision of legilsative authority•Competencies•Exclusive federal (defense, foreign affairs)•Concurrent (Crime, Labour, Social Security)•Exclusive State (Education, culture, local)International Law: A. Ashta13Sources of German LawLegislation (Dominant source)CustomsCourts role is less important•In absence of law, court looks at customs•Technically, no «precedence»•But judges are influenced by earlier decisionsInternational Law: A. Ashta14German LawsPublic Law: (Individual and State)•Crime•Administration•TaxPrivate Law (between persons)•Civil Code (Agency, Contracts, Torts, Property, Family)•Corporate (role of managers, directors)•Labour (social securit, participation)•Commercial Code (Merchants, negotiable instruments, banking, transport, sales)International Law: A. Ashta15Federal LevelSystem of CourtsConstitutionTrialAppealLander 1TrialAppealLander 2TaxTrialAppealLander 1TrialAppealLander 2SocialTrialAppealLander 1TrialAppealLander 2LabourTrialAppealLander 1TrialAppealLander 2AdministrationTrialAppealLander 1TrialAppealLander 2GeneralState LevelState disputesInternational Law: A. Ashta16German Legal SystemJudges•Inquisitorial System•Commercial courts: 3 members•2 businessmen + 1 legal person•Decision largely based on written briefsLawyers•3years, then State exam•2 years, another State exam•Minmum fees specified by law•Contingent fees not allowedNotariesRegulatory Environment•Large administration•East German businesses have to be privatizedInternational Law: A. Ashta17German Contracts•Formation•Offer and acceptance•Offer held to be open for reasonable time•Acceptance effective when received•No need for consideration (gifts enforceable)•For merchants: silenceno: Must affirm no!•Performance and Breach•Impossibility•Delay•Positive breach (shipping defective goods)•Doctrine of Good Faith•from IMPOSSIBILITY to IMPRACTICABILITY•Interesting•Lower quality goods, buyer can accept and pay lessInternational Law: A. Ashta18Socialist Legal SystemSimilarities with Civil Law•Extensive codes•Legislation is primary source•Judiciary is secondary in importanceDifferences•Philosophy of transforming society•Each gives according to ability•Each gets according to needs•State ownership of means of production•Collective use of land•Limited private property rights•Centralized decision making and standardsInternational Law: A. Ashta19Post-communismSocialism collapsing•Some will go towards civil law•Some may go towards islamic lawReforms•Legalizing private property rights•Use of property•Privatization•Monetary System•Convertibility•Interest rate regulation•Privatization of banks•Investment: Stock exchanges•New Commercial Law: •companies, partnerships, antitrust