BUS 3350: Ch 11- International and Space Law
the doctrine of sovereign immunity
A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
international organization
In international law, a term that generally refers to an organization composed mainly of nations and usually established by treaty
2 things international organizations do
adopt resolutions, create uniform rules
international contracts frequently include _____.
arbitration clauses
treaties must be _____ and _____ by the supreme authorities of each nation
authorized, ratified
international organizations adopt types of standards (ie resolutions, declarations, etc) that require nations to...
behave in a particular manner
most European nations, as well as nations in Latin America, Africa, and Asia, fall into the _____ law category
civil
civil law on an international level refers to
codified law
the major space law treaties were concluded by the UN _____, which also administers the treaties and advises the international community on space policy matters.
committee on the peaceful uses of outer space (COPUOS)
does the United States fall into the common law or civil law category?
common law (courts independently develop rules governing certain areas, stare decisis)
international disputes are often resolved through the ______ of individual nations
court systems
Any conspiracy that has a(n) _____ on U.S. commerce is within the reach of the Sherman Act.
substantial effect
4 exceptions to the doctrine of sovereign immunity
(1) the foreign state has waived its immunity explicitly or by implication, (2) the foreign state has engaged in commercial activity within the US or that which has a direct effect on the US, (3) the foreign state has committed a tort in the US or has violated certain international laws, (4) a foreign state that has been designated "a state sponsor of terrorism" is sued under the FSIA for torture or a related act of terrorism
under the NY convention, a court will compel the parties to arbitrate their dispute if all (4) of the following are true:
(1) there is a written/recorded agreement to arbitrate, (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 US citizen
about _____ objects made by humans are in orbit around the earth; most are classified as _____.
650,000; space debris
the principle of comity
A deference by which one nation gives effect to the laws and judicial decrees of another nation.
the act of state doctrine
A doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
quota
A government-imposed trade restriction that limits the number, or sometimes the value, of goods and services that can be imported or exported during a particular time period.
normal trade relations status (NTR)
A status granted through an international treaty by which each member nation must treat other members at least as well as it treats the country that receives its most favorable treatment
civil law system
A system of law derived from that of the Roman Empire and based on a code rather than case law
treaty
An agreement formed between two or more independent nations.
Under the _____, the flow of technologically advanced products and technical data can be restricted.
Export Administration Act
The _____ assesses the effects of dumping on domestic businesses and then makes recommendations to the president concerning temporary import restrictions. The _____, which is part of the Department of Commerce, decides whether imports were sold at less than fair value.
ITC; ITA
indirect exporting
If sufficient business develops in a foreign country, a U.S. company may establish a specialized marketing organization there by appointing a foreign agent or a foreign distributor
Two U.S. government agencies are instrumental in imposing antidumping duties:
International Trade Commission (ITC), International Trade Administration (ITA)
space law
Law consisting of the international and national laws that govern activities in outer space.
to minimize trade barriers, members of the WTO are required to grant _____ to other member countries
NTR status
the _____ assists the enforcement of arbitration clauses
New York Convention
confiscation
TA government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
expropriation
The seizure by a government of privately owned business or personal property for a proper public purpose and with just compensation.
dumping
The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
direct exporting
a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment for the goods
European Union (EU)
a single integrated trading unit made up of a number of European nations.
When a U.S. firm engaged in indirect exporting wishes to limit its involvement in an international market, it will typically establish a(n) _____ with a foreign firm.
agency relationship
bilateral agreement
an agreement formed by 2 nations to govern their commercial exchanges or other relations with one another
multilateral agreement
an agreement formed by several nations
under US regulations, all spacecraft are classified as "_____" which makes it difficult for US space companies to compete in global space markets
defense articles
the ITA establishes the amount of antidumping duties by setting them equal to the...
difference btwn the price charged in the US and in the exporting country
2 forms of exporting:
direct, indirect
When a foreign country represents a substantial market, a U.S. firm may wish to appoint a distributor located in that country. The U.S. firm and the distributor enter into a(n) _____.
distribution agreement
the goal of the USMCA (formerly NAFTA)
eliminate tariffs among the 3 nations (US, Mexico, Canada) on substantially all goods by reducing tariffs over time
antidiscrimination laws that affect _____ generally apply extraterritorially
employment relationships
international custom
evidence of a general practice accepted as law
Under the Outer Space Treaty, outer space is declared to be free for the.... and space objects are to be used exclusively for _____.
exploration and use of all nations; peaceful purposes
3 ways Congress restricts or encourages exports:
export quotas, restrictions on technology exports, incentives and subsidies
2 ways of doing business internationally
exporting, manufacturing abroad
Firms that invest in foreign nations face the risk that the foreign government may...
expropriate the investment property
the act of state doctrine is often employed in cases of _____ or _____.
expropriation, confiscation
t/f Congress is given the Constitutional right to impose taxes on exports
f
t/f the KORUS FTA has recently reached its goal of boosting US exports to the Republic of Korea by eliminating 95% of each nation's tariffs on industrial and consumer exports
f (exports have not increase as much as expected)
A _____ indicates what court, jurisdiction, or tribunal will decide any disputes arising under the contract. A _____ designates the applicable law. Both are useful additions to international contracts.
forum-selection clause; choice-of-law clause
_____ allows one to maintain greater control over the business operation than is possible with most other licensing agreements.
franchising
what is the major difference btwn international and national law?
government authorities can enforce national law
3 main sources of international law
international customs, treaties and international agreements, international organizations
international space law consists of _____ and _____
international treaties, UN resolutions
Alien Tort Statute (ATS)
law that allows foreign citizens to bring civil suits in U.S. courts for injuries caused by violations of the law of nations or a treaty of the United States.
Trading with the Enemy Act
law that prohibits importing goods from nations that have been designated enemies of the US
Basically, _____ allows the foreign firm to use an established brand name for a fee.
licensing
4 ways an American firm may manufacture in other countries
licensing, franchising, wholly owned subsidiary, joint venture
joint venture
method of expanding into international markets in which the US company owns only part of the operation. The rest is owned either by local owners in the foreign country or by another foreign entity
the European Union is an example of a _____ trade agreement
multilateral
Convention on Contracts for the International Sale of Goods (CISG)
one of the most significant uniform rule creations; uniform rules designed to settle disputes btwn parties to sales contracts
3 US import controls
prohibitions, quotas and tariffs, antidumping duties
tariffs raise the prices of _____ goods, causing some consumers to...
purchase domestically manufactured goods rather than imports
New York Convention
requires courts in nations that have signed it to honor private agreements to arbitrate and recognize arbitration awards made in other contracting states
in Islamic countries, law is often influenced by _____, which is a comprehensive code of principles that governs both the public and private lives of persons of the Islamic faith.
sharia
t/f Because the possibility of confiscation may deter potential investors, many countries guarantee compensation to foreign investors if their property is taken.
t
t/f all firms involved in a joint venture share responsibilities as well as profits and liabilities
t
t/f foreign corporations can no longer be defendants in suits brought under the ATS
t
When a wholly owned subsidiary is established, the parent company is located in _____. The parent maintains complete ownership of all of the facilities in the foreign country, as well as total authority and control over all phases of the operation.
the US
Sherman Act
the most important US antitrust law that provides for the extraterritorial effect of the US antitrust laws
Companies operating in foreign nations are subject not only to international agreements but also to the laws of...
the nations in which they operate
weakness in NAFTA
trade deficit btwn the US and Mexico favoring Mexico