Chapter 2: International Law and the World's Legal Systems

Criminal jurisdiction

The power of a court to hear a criminal case and to act over a defendant.

Protective jurisdiction

The protective principle allows jurisdiction over noncitizens for acts committed abroad on the basis of a country's need to protect its national security, vital economic interests, and governmental functions.

Diplomatic protection

The right of one nation to take diplomatic or judicial action to protect the rights of a person to whom it has granted nationality from a violation of international law by another nation.

Common law countries

United Kingdom, Canada, and Australia

Multilateral treaty

A treaty between three or more countries.

Bilateral treaty

A treaty between two countries.

Contracting parties

Countries that have ratified.

Transnational business crime

Crimes that occur incident to or in the course of legitimate business, and that either takes place across national borders or have an effect in more than one country. Sometimes referred to as "white collar crime"or "economic crime". The perpetrator might be an individual business person or the corporate entity itself.

pacta sunt servanda

Meaning the "pact must be respected". Treaties are binding to the parties by consent and must be performed by them in good faith.

Why International Business Law Retains Its National Character?

1. National courts interpret and apply IBL according to their own legal rules, case precedents, and histories. 2. Differences in national legal systems reflect different legal and regulatory approaches to business law. 3. The level of socioeconomic development in a country influences its legal development. 4. National attitudes towards economics affects attitudes toward law and regulation.

Reservation

An exception to a treaty set out by a signatory company at the time of the ratification.

Mixed civil law

Include much of Africa (including tribal law) and China.

The U.S. Alien Tort Statute (ATS)

It was enacted in 1789. It gave the U.S. federal courts jurisdiction over civil actions for damages brought by non-U.S. citizens outside of the United States in violation of the norms of customary international law.

Self-executing treaty

Known in Europe as a treaty with "direct effect" is one that automatically creates rights that are enforceable in the courts of that country, without any further legislative action. The treaty is immediately binding on courts, government agencies, and individuals.

jus gentium

Latin term for international law, translating directly into "the law of nations". Used in reference to that part in Roman law that government public and private relations with foreigners and with the rulers of foreign lands.

Universality

Permits any country to prosecute perpetrators of the most heinous and universally condemned crimes regardless of where the crimes occurred or the nationality of the perpetrators or victims.

Jurisdiction

Power of a court to act

law merchant and maritime law

The accepted customs and practices of ancient and medieval merchants, traders, bankers, mariners, and ship owners.

International business law

The body of law and regulations, derived from national and international sources, that governs cross-border business transactions, the activities of those doing business in foreign countries or subject to the jurisdiction of foreign courts, and the resolution international business disputes.

International law

The body of rules applicable to the conduct of nations in their relationships with other nations, and with individuals and other private parties, rules for settling disputes between nations, as well as rules for intergovernmental organizations.

Ratification

The formal agreement of a signatory nation to be bound by the treaty, usually by its own legislative approval.

Coalition for Environmentally Responsible Economies

A private, mostly American network of environmental groups, socially conscious investors, and companies committed to following the CERES Principles of environmental and social accountability.

Customary international law

A body of commonly accepted rules of conduct, or international norms, that have arisen out of consistent and long-standing practice, and that nations have followed out of a sense of binding obligation. Historically, examples of customary international law includes rules for prosecuting the crimes of slavery, piracy, or genocide, rules for diplomatic immunity and the protection of ambassadors, rules for the inviolability of embassies, rules that protect civilians during war, or rules governing the seizure of private vessels during wartime.

Treaty

A legally binding agreement between two or more nations that is recognized and given effect under international law.

Convention

A legally binding multilateral treaty on matters of common concern, usually negotiated on a regional or global basis and open to adoption by many nations.

UN Global Compact

A partnership of international companies, public interest groups, and UN agencies who pledge to support a set of voluntary principles on human rights, labor standards, the environment, and corruption.

Primary sources of international law

According to Article 38 of the Statute of the International Court of Justice, the primary sources of international law are: 1) international treaties and conventions 2) international custom, as evidence of a general practice accepted by law, and 3) the general principles of law recognized by civilized nations.

Abrogation

An act of legislature that renders a treaty null and void.

Protocol

An agreement that modifies or adds to a treaty or convention, or that deals with matters less significant than those dealt within treaties.

Treaties of Friendship, Commerce, and Navigation (FCN treaties)

Bilateral agreements that provide a broad range of protection to foreign nationals doing business in a host country. Although each treaty is different, they typically state that each country will allow the establishment of foreign branches or subsidiaries, the movement of capital and technology, the right of travel, and the right to own real estate. FCN treaties also assure the payment of just compensation for property taken by government action and the nondiscriminatory treatment of personnel.

Private international law

Deals with the rights and responsibilities of individuals, corporations, or other private parties in their cross-border or international activities, as well as procedural rules for how courts resolve private international disputes.

Public international law

Deals with those rules affecting the conduct of nations in their relationships with each other and with individuals as citizens or residents.

The Vienna Convention on the Law of Treaties

Effective in 1980 in about half the countries of the world, it codified many of the customary rules. It covers such issues as when treaties enter into force, how they are interpreted or amended, and the rights and duties of contracting parties. Although the treaty has not been ratified by the United States, many U.S. courts apply its provisions as customary law.

Transnational organized crime

Examples include the illegal drug trade and firearms trade, smuggling, human trafficking, prostitution and sex crimes, cybercrime, counterfeiting, ocean piracy, money laundering, and similar crimes. This might be the work of the Russian or Sicilian mafias, the Japanese yakuza, Columbian drug cartels, Chinese triad, or one of the many gangs that engage in organized crime at the international level.

International Court of Justice

Formed in 1945 as the primary judicial arm of the United Nations, the ICJ is the arbiter of international law disputes between nations-cases brought by nations, against nations. It sits at The Hague, Netherlands, and bases its work on the Statute of the International Court of Justice.

Passive personality jurisdiction

Gives a country the right to hear cases stemming from crimes committed against their own citizens by noncitizens outside their own territories. Passive personality is controversial because the only connection to the prosecuting nation may be the nationality of the victim.

Civil law

Includes most of Eastern and Western Europe, Latin America, Japan, and Russia. Modern legal systems derived from ancient Roman law.

Nationality jurisdiction

Individuals and corporate citizens owe duties to comply with the laws of of their countries of nationality no matter where they are in the world. It is considered one of the obligations of citizenship.

Territorial jurisdiction

Nations have jurisdiction over crimes that occur within their territorial borders. Refers to the nation's jurisdiction over all persons (citizens and noncitizens), place and property within the territory, airspace, or territorial waters of a country and to crimes committed on vessels flying that nation's flag.

Signatories

Nations that express their willingness to join a treaty.

Non-self-executing treaty

One without direct effect, is one that requires some additional legislative act before it become enforceable in national courts.