Please offer a well reasoned and articulate discussion on a case relevant to the chapter under study which includes the rationale for the decision in same along with the ramifications thereof for business and society.
1. Spectrum Stores v. Citgo Petroleum
2. Taylor v. Baseball Club of Seattle, L.P.
Business Law Today COMPREHENSIVE EDITION TEXT & CASES, 11th Edition
Roger LeRoy Miller
Copyright © 2017 Cengage Learning. All Rights
International Law in a Global Economy
• Chapter 19
• Chapter Outline • 19-1 International Law • 19-2 Doing Business Internationally • 19-3 Regulation of Specific Business Activities • 19-4 International Contracts • 19-5 Payment Methods • 19-6 U.S. Laws in a Global Context
Learning Objectives (slide 1 of 2)
1. What is the principle of comity, and why do courts deciding disputes involving a foreign law or judicial decree apply this principle?
2. What is the act of state doctrine? In what circumstances is this doctrine applied?
3. Under the Foreign Sovereign Immunities Act, in what situations is a foreign state subject to the jurisdiction of U.S. courts?
Learning Objectives (slide 1 of 2)
4. What are some clauses commonly included in international business contracts?
5. What federal law allows U.S. citizens, as well as citizens of foreign nations, to file civil actions in U.S. courts for torts that were committed overseas?
19-1 International Law
• 19-1a Sources of International Law
– International Customs
– Treaties and International Agreements
– International Organizations
• Adopt Standards
• Create Uniform Rules
19-1b International Principles and Doctrines
– The Principle of Comity
• Comity: The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.
• Case Example 19.2 Goldberg v. UBS AG (2010)
• Linde v. Arab Bank, PLC (2013)
• Is it unethical to give the interest of fighting terrorism precedence over an international legal principle?
19-1b International Principles and Doctrines (slide 1 of 2)
– The Act of State Doctrine
• Provides the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory
• Case Example 19.3 Spectrum Stores, Inc. v. Citgo Petroleum Corp. (2011)
• When a Foreign Government Takes Private Property
• Doctrine May Immunize a Foreign Government’s Actions
19-1b International Principles and Doctrines (slide 2 of 2)
– The Doctrine of Sovereign Immunity
• Doctrine that immunizes foreign nations from jurisdiction of U.S. courts when certain conditions are satisfied
1. When foreign state has waived its immunity
2. When foreign state has engaged in commercial activity within/outside U.S. that has “a direct effect in the U.S.”
3. When foreign state has committed a tort in U.S. or violated certain international laws
19-2 Doing Business Internationally
• 19-2a Exporting
– Agency Relationships
• 19-2b Manufacturing Abroad
– Joint Ventures
19-3 Regulation of Specific Business Activities
• 19-3a Investment Protections
• 19-3b Export Controls
1. Export quotas
2. Restrictions on technology exports
3. Incentives and subsidies
19-3c Import Controls
– Quotas: set limit on amount of goods that can be imported
– Tariffs: tax on imported goods
– Antidumpting Duties
• Dumping: The sale of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
19-3d Minimizing Trade Barriers
– The World Trade Organization (WTO)
– The European Union (EU)
– The North American Free Trade Agreement (NAFTA)
– The Central America–Dominican Republic–United States Free Trade Agreement (CAFTA-DR)
– The Republic of Korea–United States Free Trade Agreement (KORUS FTA)
– Other Free Trade Agreements
19-4 International Contracts
• 19-4a Contract Clauses
– Choice-of-Language Clause
• Designates official language in event of disagreement
– Forum-Selection Clause
• Indicates what court, jurisdiction, or tribunal will decide any contract disputes
• Case Example 19.8 Garware Polyester, Ltd. v. Intermax Trading Corp. (2008)
19-4a Contract Clauses
– Choice-of-Law Clause: A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.
– Force Majeure Clause: A provision in a contract stipulating that certain unforeseen events—such as war, political upheavals, or acts of God—will excuse a party from liability for nonperformance of contractual obligations.
• Carlyle Investment Management LLC v. Moonmouth Company SA (2015)
• Would Plaza have been bound to the forum- selection clause if it had signed the subscription agreement as Moonmouth’s director but had no other relation to the agreement? Discuss.
19-4b Civil Dispute Resolution
A court will compel arbitration if all are true:
1. There is a written agreement to arbitrate the matter.
2. The agreement provides for arbitration in a convention signatory nation.
3. The agreement arises out of a commercial legal relationship.
4. One party to the agreement is not a U.S. citizen.
19-5 Payment Methods
• 19-5a Monetary Systems
– Foreign exchange market: worldwide system to buy/sell foreign currencies
– Correspondent bank: acts on behalf of another bank to facilitate fund transfers
• 19-5b Letters of Credit
– How a Letter of Credit Works
– The Value of a Letter of Credit
19-6 U.S. Laws in a Global Context
• 19-6a U.S. Antitrust Laws
• 19-6b International Tort Claims
• 19-6c Antidiscrimination Laws
Spotlight on International Torts: Case 19.3
• Daimler AG v. Bauman (2014)
• What are the consequences for Daimler of the decision in this case?