Summary
Summary - Business Law II
- Course
- Institution
This document includes the information on the slides, and additional notes from class and focus points on important topics.
[Show more]
Seller
Follow
larabutti9
Content preview
Business Law IIWeek 1 & 2: Welcome to Business Law II
Chapter 1: What is the law? Origins and Nature of Law
The world’s Legal Traditions and why this matters to Business Law
KEY TERMS:
law that which a judge will decide concerning matters properly brought before him/her; in a
broader sense, any rule that society will enforce
code in the common law, a collection of statutes enacted by legislative bodies, including
Congress and state legislatures Civil Law codified law based on the Roman code of
Justinian; the basis of the legal system of almost all European and Latin American countries
as well as many African and Asian nations
common law law as developed and pronounced by the courts in deciding cases (“case
law”), based on the common law of England and judicial precedent
Law = set of formal rules that are imposed, controlled and punished by officials/government
within official geographical area (Law is based on enforceable rules)
based on ethics, beliefs, natural human behaviors
divine right “thou shall not kill” → where do we draw the line between
legal philosophy and ethics or religion?
→ Law = that which a judge will decide concerning matters properly brought
before him/her: in a broader sense, any rule that society will enforce
Result = “Stability and Predictability”
Why? The law regulates conduct in society
a. Personal level
i. Citizens need to be able to determine “right from wrong”
b. Business level
i. Degree of “Legal Certainty” in business dealings
Fortunes are made and lost on legal questions such as:
- Can I rely on my counterparty?
- What if this deal turns sour?
- Will we end up in court?
- Will the Law stand behind us?
> Simple question: From a business point of view, what is legally right and wrong?
→ Simple answer: It depends!
→ How stable is the legal environment where you intend to do business?
● Look to the particular country where you are sitting in at particular moment in
history
● Law has dealt with business issues in very different ways at different times
and places in history
→ Eg; Euthanasia, gay marriage, time of war and the rules put in place, internet
censorship, prostitution, right to vote women, drinking age, clothing, smoking,
marriage, covid regulations
-> The law is constantly evolving
, ● Nomadic tribes
○ not written
● Code of Hammurabi (Ancient Babylonian)
● Greek concepts of Democracy
○ civilians: male landowners (not women)
● Roman Code (533)
● Early Common Law courts (1066)
● Napoleonic Code (1804)
● Today’s modern laws/court decisions
Law:
> Reflects values and beliefs of society or its ruling group
> Close relationship between morality and any rule that society will enforce
→ should reflect time and space, but can lag
→ Examples?
workers rights, unions, salaries, health insurance (priorities, US doesn't want to
interfere, health insurance is a choice: risk taking “i’m healthy rn so i don't need” so
you can pocket the money), pensions > idea of choice, maternity leave,
unemployment benefits, taxes, ...
2nd amendment: we can take down any foreign intruders: gun control, but is this reflecting
everyone’s values today? Everyone’s morals?
Influences on The Law
> Especially important in the international business context
● What is the current Legal Environment?
● Society’s current attitudes?
● Can the law be “behind the times”?
● Noteworthy trends?
Your Role in Business: Key Questions for International Business Persons
> How will the local, legal environment affect my business decision making?
● Degree of predictability?
● Business implications?
● Many different laws can affect a single business decision
> Question: Congratulations, you are the President & CEO of a manufacturing company that
intends to expand overseas. You will hire 500 local factory workers.
How will the local laws of various countries influence your decision on where to build a new
manufacturing plant? Give examples.
- labor laws (minimum wage, hours you can work) - taxes - construction
laws (permits, licenses) - trade laws (quotas on imp/exp) - laws of conduct
- environmental (emissions) - loans > financial laws - CSR - GDPR >
intellectual property → ownership laws in property - corporate law - safety
regulation - mergers and acquisitions - exploitation of natural resources -
marketing - HR - consumer protection rules - insurance law - competition
law
,⇒ bankruptcy + agency + corporate fraud + contracts + employment +
competition + product liability + sales + business organization
International Private Law
= two or more parties (different nationalities) make a deal in a third country; which law
sovereigns/applies?
> Set of rules or procedural law that regulates relationships between persons (or entities) of
different nationalities
> Determines which legal systems and law of which jurisdiction will apply to a legal dispute
among individuals involving a foreign element
> Also known as “Conflict of laws”
International Law
> Transnational rules that national courts use to regulate three primary relationships:
→ relationship between two nations
→ relationship between a nation and an individual
→ relationship between persons/entities from different countries
> Sources:
→ Int’l conventions & treaties: customs/general practice
→ widely accepted general principles of law and all other sources used in
national law (such as judicial decisions & scholarly writings)
> Example of international conventions & treaties?
⇒ treaty of Rome (Belgium, Luxembourg, Netherlands,Italy, France) > (European
Economic Community) treaty of Versaille (formally end WWI)
Civil vs. Common Law
> Civil law: “Continental European Approach”
● Oldest & most influential legal system
● Roman-Germanic: codified law based on Roman Code
● Legal rules set out in one comprehensive & systemized code and accompanying
statuses
○ Ex; family law, property law, succession law, law of obligations, commercial
law, labor law, criminal law, etc
● Western Europe
● Codes
> Common law: “Anglo-Saxon Tradition”
● Law is found on a “case-by-case basis”
● Law is based on court decisions rather than formal codes: “precedent’
● Overall accumulation of judicial decisions - law is developed and pronounced by
courts
● Stare Decisis (stand by the decision): requires courts to follow their own precedents;
binds all of the lower courts of a jurisdiction to determinations of the highest court in
that same jurisdiction (p9)
● you find the law in the previous cases (>< from Civil; Codex)
● Judge plays a more passive role: lets the two adversaries (lawyers) battle it out
, ● More lawyers in the common law because common law encourages litigation: there’s
more room for interpretation and questioning the law
○ If there’s a bad precedent, you can appeal it
○ law can change overtime, or you overturn it
● Common law is written not in a comprehensive code (as in civil) but in cases
→ What major way do they differ? Codes vs precedents
→ What happens when there’s no precedent? Courts are bound by precedent;
court has to decide for the first time ever
Civil Vs. Common Law Countries
Civil: Italy, Japan, Mexico, South Korea, Germany, Greece
Common: Australia, India, United Kingdom, United Stated, Jamaica, Israel, Canada & South
Africa (mixed), Ghana
Most of Africa mixed: civil law → business issues and muslim law→ family issues
religion influences culture, culture influences law
Homework: Based on your reading of International Law: 100 Ways it Shapes our Lives (see,
Canvas course materials), list 3 ways that international law has helped shape your life
personally.
45. increasing the availability of patented pharmaceuticals at your pharmacy or drugstore
81. shipments across borders
91. banning child pornography and prostitution
92. Working to eliminate discrimination against women and girls and
advance gender equality.
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 larabutti9. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.15. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now