BLAW 3310 Final Chapter 21 & 22

strict liability

(these involve abnormally dangerous activities from page 577) it may apply in pollution cases. Applies to businesses that produce or omit toxic pollutants.

business structure-US based company with direct exports

????

FCPA

A Federal United States law aimed at preventing the bribery of foreign government officials in an effort to obtain or retain business.

Wholly-owned subsidiary

A business may buy an existing facility or build a new one (foreign manufacturing). Many countries impose limits on the percentage of ownership in a local enterprise by foreigners.

franchise

A contract between a parent company (franchisor) and an operating company (franchisee) to allow the franchisee to run a business with the brand name of the parent company, so long as the terms of the contract concerning method of operations are followed.

exclusive territory

A fixed geographic area in which a franchisee is given the right to operate, and in which the franchisor is restricted from establishing any other units.

commission %

A percentage of total sales price that the seller receives for bringing in revenue associated with a specific service or good

page 609 examples of countervailing measures

Allowing a country to impose tariffs on imports that ordinarily would not be subject to the tariffs.

Superfund page 593

Also known as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980. Provides the authority to clean up abandoned hazardous sites.

non-attainment areas

Areas that have not met NAAQS standards.

attainment areas

Areas with clean air- air of better quality than require by the NAAQS.

Clean air Act

Establishes Federal authority to control air pollution. Requires the EPA to set pollution standards across the country.

Whalen case page 578

Farm owner used stream water for livestock and watering plants. A pulp mill was built upstream and began polluting the water and making it unsafe for the animals. Whalen sued the mill and was awarded $312/ year and an injunction was issued against the mill to stop the pollution.

royalty

Generally a percentage of annual sales paid by the franchisee to the franchisor.

JV with local partner

Joint Venture with a local partner. Means sharing ownership with foreign partners. Requires less investment by the company than a wholly-owner subsidiary, but can mean loss of managerial control. Advantage is the local partner who knows how to deal with regulations and is experienced in domestic markets.

mobile sources of pollution vs. toxic pollutants

MOBILE SOURCES: basically emission from things like tailpipes, controls gas emissions and creates reformulated gasoline and alternative fuel requirements. TOXIC POLLUTANTS: As of 1990, there are 189 substances that have been declared to be hazardous air pollutants. EPA has set standards for those 189 substances.

NAAQS

National Ambient Air Quality Standards. Set limits on how much of a pollutant is allowed in the air outside-ambient air- as air quality is measured at hundreds of sites around the country.

manufacturing license with foreign company

One business grants another business access to its patents and other technologies. The licensor is usually granted a royalty on sales. Helps establish a worldwide brand/reputation.

public and private nuisance

PUBLIC: an unreasonable interference with a right held in common by the public. (pollution case: the right held in common is a community's right to a reasonably clean and safe environment. PRIVATE: a substantial and unreasonable interference with the use and enjoyment of the land of another. Generally involves a polluter who is injuring one person or a group of people and may face private litigation.

export restrictions page 613

Restricts export of products that may injure a domestic industry, jeopardize national security, or conflict with national policy.

point source pollution

Sewage from homes and industrial sources

POTWS page 584

Sewage treatment plants. Usually publicly owned to control point-source pollution.

riparian water law

States that people who live along rivers and bodies of water have the right to use the water in reasonable amounts but must allow the water to flow downstream in usable form

upfront fee

The initial fee paid to obtain a license from a franchisor to become a franchisee.

TSCA page 591

Toxic Substances Control Act: How the EPA keeps track of tens of thousands of substances registered with the EPA. Regulates the sale, transport, and use of said substances.

WTO

World Trade Organization: Replaced the GATT in 1995. Oversees trade agreements and works to set up a dispute-resolution system using three-person arbitration panels.

tariff

also known as a duty, which is a tax imposed by a government on imported goods. Specific tariffs and "Ad Valorem" tariffs.

anti-dumping laws

duties or taxes imposed on companies trying to dumb cheaper products into the US market. The difference between the american version of the product and the foreign one is the tax to be charged to the foreign firm.

non-point source pollution

pollution coming from runoff at construction sites, logging and mining operations, streets, and agriculture that seeps into ground water.

import restrictions

some imports are prohibited for safety or environmental reasons. Also restricts foreign companies from "dumping" extremely cheap products into the US market. Bans the import of weapons and explosives, as well as narcotics. Even some poorly made foreign vehicles.

foreign sales agent

A person or entity acting as a foreign representative for a domestic company.

Clean Water Act

Began in 1886 and 1899 and the Federal Water Pollution Act of 1948. Initially there was a lack of federal control over the issue, leaving the states responsible. Clean Water Act of 1977 began with the objective of "restoring and maintaining the chemical, physical, and biological integrity of the Nation's waters"

right to audit clause

Businesses are subject to a company audit at any time to enforce proper business practices relating to finances of the business

NAFTA

North American Free Trade Agreement: Ratified by the governments of Canada, US, and Mexico and went into effect in 1994. Reduced or eliminated tariffs and trade barriers on most North American trade. Effects Agriculture, Automobiles, pharmaceuticals, and textiles.

toxic torts

the dumping of hazardous waste into water sources