Summary
Samenvatting Foundations Of Business Law International Business Administration
- Course
- Institution
Samenvatting Foundations Of Business Law International Business Administration
[Show more]
Seller
Follow
noortjerozendaal
Reviews received
Content preview
lOMoARcPSD|15781725lOMoARcPSD|15781725
Lectures Foundations of Business Law
Lecture 1: An introduction to legal systems – Chapter 1
Introduction to the course
Goal: Become aware of typical legal problems that someone could encounter when working.
Global law used: Anglo-American law. Language of international interactions is English.
Example legal system exam question [slide 2]:
He reasons from principles to facts, not from facts to principles. He asks himself ‘what shall we do this
time’, not ‘what did we do last time’. This describes a lawyer from the civil law system.
+Know the difference civil law and common law systems.
The nature of law:
- Jurisdictional laws are not like fundamental scientific principles.
- Law – is a command proceeding from the supreme authority of a state and addressed to
the persons who are subjects of that authority.
o Reflects the predominant norms and values of a given society at a given point in
time. These norms can shift over time:
▪ E.g. in the past homosexuality could be prosecuted, but now not.
▪ In the past you couldn’t be prosecuted for marital rape.
▪ What stayed the same: Females can’t be prosecuted for rape, because you
need to have a male genital.
How do lawyers’ reason?
- Lawyers are trained to think in terms of looking for problems and how to protect their
client from potential problems.
- Law – rarely black and white: lawyers cannot always predict with anything like certainty
how legal rules will be interpreted (no certainty).
- Lawyers do not approach things the same as managers do (do not use statistical analysis).
Understanding and communicating with lawyers
Tool of the law: language
- Language can be ambiguous Can be interpreted in different ways (which may cause friction
between people).
- E.g. “the company agrees to replace any units found to be defective within three
months” Has two different interpretations:
o Only have 3 months to point out any defects or a promise by the company to replace
a defective unit within 3 months (doesn’t matter when I point it out).
Types of legal systems: common law and civil law systems; origins, characteristics and differences in
approach.
The legal framework
The principle objective of a legal system is to establish rules and principles to regulate relationships.
- Where interests conflict, the law attempts to resolve differences by the application of these
rules and principles.
->
, lOMoARcPSD|15781725
E.g. Conflict between two people: Employee made a mistake on a bystander’s car. Who will you
sue?
o Answer: Small claim (law of thought). Sue the worker’s employer.
o When you are an employer, you need insurance for this specific reason.
- Business activities take place within a legal framework that sets out the rights and obligations
of the participants.
Two types of legal framework: Public and private law
• Private law (civil law): concerned with the private rights and obligations of individuals.
A company can be treated as an individual. E.g. tort law and contract law.
o Civil action: an official complaint made by a person or company in a law court against
another person who is said to have done something to harm them, that is dealt with
by a judge. (taking legal action)
o Deals primarily with financial compensation
• Public law: concerned with the relationship of individuals to society, for example criminal
law which imposes sanctions for anti-social activities.
o These forms of law may have both a national and international dimension.
Legal system map
Blue = civil law (Dutch)
Red = common law (American)
Brown = mix of common and civil
law Black = Customary law
Yellow = Religious law
->
, lOMoARcPSD|15781725
Common law systems: It is uniform
- The law was developed in the Middle Ages in England and Wales as the law administered in
the king’s courts. The king used his power to centralize the system.
- Local customs and uses were either assimilated or abandoned to form one set of laws
‘common’ (i.e. uniform) to all throughout England and Wales.
- The law grew in response to deciding individual disputes brought before the courts.
- It developed as a case law system. Cases are the source of law. They form precedents that
must be followed.
Civil law systems
- In civil law systems the law is put together into a formal written code. The code
provides comprehensive and systematic regulations.
o In the Dutch system three major code books are used.
- Cases Interpret the code but are in general not a source of law.
o In this system you can never win a case by citing a precedent. These cases tell you
how to read the code, you can interpret them but are not a source of law.
o Exception: Germany
- Modern civil law systems have been influenced by Roman law as codified by the
Emperor Justinian in the 6th century AD.
o The historical basis of Dutch law (Napoleonic law) Code Napoleon – drafted in 1804
France and implemented in conquered lands in Europe.
Difference in approach
1. Common law systems: Always go back to the cases, were there similar cases before.
Practical, but not academic. You couldn’t study this in the past, there were only roman law.
- Common law jurist reason from certain cases, applying the legal principles laid down in
those cases to new cases with similar facts.
- Hierarchy is very important: Everything that the Supreme court decides binds everyone and
as you go down the pyramid you can bind all the courts below that court.
2. Civil law systems: Law is laid down in the code but are not binding.
- Jurists argue from the general principles of law laid down in the codes of law. Cases
provide guidance to interpreting the code but are generally not binding.
- In principle a lower court does not have to be bonded by what a higher court decides.
->
, lOMoARcPSD|15781725
The states have different court systems:
In the USA federal court system
- When to use it: When your company is not a national company. Or if you are going litigate
an international company.
o Competition law (antitrust law): a law that promotes or seeks to maintain
market competition by regulating ant-competitive conduct by companies.
Alternatives to the courts
Alternative dispute resolution (ADR):
- Mediate: you have a dispute and the mediator will help the parties to come to a solution
- Conciliation: Comes up with solutions, you can accept or deny.
- Arbitration: Very common for businesses. Arbitrator is an expert in the field. The hearing is
private (protects the privacy of the company). Going to court in comparison to arbitration
is public.
*International contracts
▪ Need to decide whose law is going to govern over the contract?
▪ If there is a dispute, which forum is it going to be dealt in: Court or arbitration.
Both parties must stick to what was decided.
->
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller noortjerozendaal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.36. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53340 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now