Bus 410 Midterm 1 N

M. Aslam Khaki v. Syed Muhammad Hashim: A financial system based on the lending of money for interest is unjust and contrary to Islamic law; equity investments are lawful where all parties share the risk of profit and loss

A financial system based on the lending of money for interest is unjust and contrary to Islamic law; equity investments are lawful where all parties share the risk of profit and loss

Argentina-Safeguard Measures on imports of footwear: Argentina's investigation inadequate under the standards of the WTO safeguard provisions

Argentina's investigation inadequate under the standards of the WTO safeguard provisions

Section 8, Clause 3: Article I of the constitution confers all legislative powers on Congress, including the power to regulate commerce with foreign nations, and among several states

Article I of the constitution confers all legislative powers on Congress, including the power to regulate commerce with foreign nations, and among several states

US v. Campbell: Australian citizen committed bribery in Afghanistan; was able to be indicted in the US because the government has an interest in protecting itself from fraud wherever it occurs (protective jurisdiction)

Australian citizen committed bribery in Afghanistan; was able to be indicted in the US because the government has an interest in protecting itself from fraud wherever it occurs (protective jurisdiction)

Powers delegated to President By congress in a statute

By congress in a statute

Tarbert Trading Ltd. v. Cometals, inc

Case about red beans that originated in Africa but were said to have been from the EEU. Claim and counterclaim were dismissed because agreements that violate the law are void

Star-Kist Foods, Inc v. US: Court held for the US; congressional delegation of authority was ok

Court held for the US; congressional delegation of authority was ok

Gaskin v. Stumm Handel GMBH

Gaskin, a US citizen, tried to sue in a US court claiming that he could not read the german contract when signing it stating that problems had to be resolved in a German court, but the suit was dismissed

Bernina Distributors v. Bernina Sewing Machine Co.

Importer had assumed exchange rate risk; cost increases and currency fluctuations alone do not render a contract too "impractable" to perform

International Trade Commission (ITC): Independent agency of the government; conduct investigations and prepare extensive reports on matters related to international economics and trade for Congress and the Pres

Independent agency of the government; conduct investigations and prepare extensive reports on matters related to international economics and trade for Congress and the Pres

India - Quantitative Restrictions on Imports of Agricultural, Textile and Industrial Products: India's quantitative restrictions and licensing scheme violated article XI b/c they were discriminatory and not rules based

India's quantitative restrictions and licensing scheme violated article XI b/c they were discriminatory and not rules based

Patent: Invention/utility (non-obvious way of doing something), design (e.g. new form of wallet), & plant patent (e.g. asexual plant)

Invention/utility (non-obvious way of doing something), design (e.g. new form of wallet), & plant patent (e.g. asexual plant)

Transatlantic Financing Corp. v. United States

Iran sued for the cargo ship taking a longer than expected route, however court affirmed for the United States because they had not previously agreed on the route (1) and because the ship had no choice once it found out about the war time blockade (2).

Sharia Law

Islamic law; they are attempting to seek the truth, the divine word of God

Russian entertainment wholesale, Inc. v. Close-Up international, inc.

Judgement affirmed for the defendant. Close-Up could not sue Image for distributing multi-lingual DVDs, saying that they were committing copyright infringement, because their rights were limited to just selling the Russian version.

Ventress v. Japan airlines

Judgement reversed for plaintiffs, airlines could not fire them for whistle blowing

Apple Inc v. Samsung 2012: Jury reduces $1 mil award&urges both parties to resolve

Jury reduces $1 mil award&urges both parties to resolve

Youngstown Sheet & Tube v. Sawyer: Lower court's injunction against the Pres was upheld; he was not acting pursuant to an act of congress, nor could the seizure of private property during wartime be justified on the basis of his inherent power

Lower court's injunction against the Pres was upheld; he was not acting pursuant to an act of congress, nor could the seizure of private property during wartime be justified on the basis of his inherent power

International trading companies

Middlemen who bring buyers and sellers together by specializing in all aspects of import/export transactions

Mediation

Non binding, lowest level of resolution

European Economic Community - Import Regime for Bananas: Panel held the EEC had deprived the complaining latin america countries of the benefits which they were entitled under the schedule of concessions

Panel held the EEC had deprived the complaining latin america countries of the benefits which they were entitled under the schedule of concessions

Reciprocal Trade Agreements Act of 1934: President granted the authority to negotiate tariff reductions on a product by product basis on the basis of reciprocal trade; tariff concession: lowering the tariff on an import if that country agrees to lower their tariffs on our exports

President granted the authority to negotiate tariff reductions on a product by product basis on the basis of reciprocal trade; tariff concession: lowering the tariff on an import if that country agrees to lower their tariffs on our exports

Unconditional MFN Trade

Same as conditional MFN trade except nothing is expected in return from the exporting country

Scherk v. Alberto-Culver: Scherk moved to dismiss or to arbitration and US Supreme Court changed to the latter

Scherk moved to dismiss or to arbitration and US Supreme Court changed to the latter.

Dole v Carter: The return of the crown was found to not be a treaty but a valid executive agreement

The return of the crown was found to not be a treaty but a valid executive agreement

European Communities - Regime for the Importation, Sale and Distribution of Bananas: US could call for the convening of a WTO panel to question EC import barriers

US could call for the convening of a WTO panel to question EC import barriers

Finnish Fur Sales Co, Ltd. v. Juliette Shulof Furs, Inc.: Under conflict of Law rules, US court applied Finnish law to hold Shulof personally liable for the contract debt of the auctioned fur

Under conflict of Law rules, US court applied Finnish law to hold Shulof personally liable for the contract debt of the auctioned fur

indirect export

Using intermediaries to handle exports (i.e. export trading companies and export management companies)

Trade related aspects of intellectual property rights: WTO TRIPS; gov rules/regulations on IPRs that have an effect on trade in goods

WTO TRIPS; gov rules/regulations on IPRs that have an effect on trade in goods

WIPO

World Intellectual Property Org; specialized agency of the United Nations - develops IP policies, coordinates registrations in some IP areas, resolves disputes

WTO

World Trade Org; a more uniform application and enforcement of their national IP laws - their dispute settlement body resolves issues between governments

Pebble Beach Company v. Caddy: a passive website and domain name alone don't satisfy the effects test, there was no other action expressly aimed at CA, and this does not grant personal jurisdiction

a passive website and domain name alone don't satisfy the effects test, there was no other action expressly aimed at CA, and this does not grant personal jurisdiction

Sosa v. Alvarez Machain

abduction and arrest did not meet standard for Alien Tort Statute, and Alvarez lost suit

GATT prohibits which quota? absolute quotas

absolute quotas

trade compensation: act of lowering import duties on certain products coming from a foreign country for the purpose of offsetting increased duties imposed on other products from that country

act of lowering import duties on certain products coming from a foreign country for the purpose of offsetting increased duties imposed on other products from that country

protocol

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

Congressional-Executive agreement: agreements between the president and another country; just needs a majority vote by the senate and house of reps

agreements between the president and another country; just needs a majority vote by the senate and house of reps

protective jurisdiction

allows jurisdiction over noncitizens for acts committed abroad on the basis of a country's need to protect its national security (ex: foreign citizen prosecuted who conspired with an American to set up a sham marriage to get into the US)

abrogation

an act of legislature that renders a treaty null or void

embargo

an official ban on trade

Conditional MFN Trade: any trading advantage (such as reduced tariff rate) applied to an imported item will also be applied to the same or like items coming from other countries that have MFN status with the importing country (but that country must do the same)

any trading advantage (such as reduced tariff rate) applied to an imported item will also be applied to the same or like items coming from other countries that have MFN status with the importing country (but that country must do the same)

Countries in transition

applies to countries going from centrally planned economies (based on communist doctrine) to free market

ad valorem tariffs

as a percentage of value

self-executing treaty

automatically creates rights that are enforceable in the courts of that country, without any further legislative action

customary international law

body of commonly accepted rules of conduct, or international norms, that have arisen out of consistent and long-standing practice

US - Countervailing Measures Concerning Certain Products from the EC ("European Steel"): case by case; "same person" test used by US department of commerce violated the SCM agreement

case by case; "same person" test used by US department of commerce violated the SCM agreement

Arbitration

cheaper, binding, no public scrutiny, usually no appeal

nationality jurisdiction

citizens owe duties to comply with the laws of their countries of nationality no matter where they are (sex offending in a different country gets you prosecuted in the US also)

Domain names: complaints submitted electronically to WIPO; ICANN adopted uniform domain name dispute resolution policy

complaints submitted electronically to WIPO; ICANN adopted uniform domain name dispute resolution policy

tariffication: converting quotas, embargoes, import licenses, etc to tariffs

converting quotas, embargoes, import licenses, etc to tariffs

joint venture

cooperative business arrangement between two or more companies for profit, may take the form of a partnership or corporation

Nottebohm Case [Liechtenstein v. Guatemala]: court agreed with Guatemala; Guatemala was not required to recognize the citizenship granted by Liechtenstein in a way that did not follow well-established principles of international law

court agreed with Guatemala; Guatemala was not required to recognize the citizenship granted by Liechtenstein in a way that did not follow well-established principles of international law

Japan Line Ltd. v. County of LA: court ruled: ad valorem property tax applied to cargo containers used exclusively in foreign commerce violates the commerce clause b/c resulted in multiple taxation

court ruled: ad valorem property tax applied to cargo containers used exclusively in foreign commerce violates the commerce clause b/c resulted in multiple taxation

subject matter jurisdiction: court's authority to hear a certain type of legal matter, such as tort cases or breach or contract

court's authority to hear a certain type of legal matter, such as tort cases or breach or contract

in rem jurisdiction: court's power over properties within its geographical boundaries

court's power over properties within its geographical boundaries

In personam jurisdiction

courts look at many factors, extent of the person's stay in the state, what business he/she conducted there, burden on the defendant, fairness to the plaintiff and interest of the state

Japan - Taxes on alcoholic beverages: decision upheld and japan was requested to bring its tax law into compliance with GATT

decision upheld and japan was requested to bring its tax law into compliance with GATT

subsidy

defined in the SCM (subsidies&countervailing measures) as a financial contribution, including any form of income or price support, made by a government that confers a benefit on a specific domestic enterprise or industry

Asahi Metal Industry Co. v. Superior Court of CA, Solano County: did the California courts have personal jurisdiction over Asahi tire manufacturer? No jurisdiction

did the California courts have personal jurisdiction over Asahi tire manufacturer? No jurisdiction

quota:

direct non-tarriff barrier; restricts how many units of an import that may enter a country; international trade laws today restrict the use of quotas except in very limited circumstances

Sole-executive agreement

doesn't require congressional approval; enter into agreements with foreign countries that don't create broad new national policies

States cannot tax _____ (imports/exports) and the fed cannot tax _____ (imports/exports)

either; exports

Forum non conveniens: even if a court has jurisdiction and venue is proper, it can still refuse to hear if another jurisdiction or location would be better served

even if a court has jurisdiction and venue is proper, it can still refuse to hear if another jurisdiction or location would be better served

family law (part of private law)

ex: when cuban boy was picked up from ocean

reservation

exception to a treaty set out by a signatory country at the time of ratification

direct export

exporter assumes responsibility for most of the export functions

diversity jurisdiction

federal court's authority to hear a case where the amount in controversy exceeds $75,000 and the parties involved are from different states

Trade Adjustment Assistance: financially assists unemployed workers as a result of increased imports of foreign goods

financially assists unemployed workers as a result of increased imports of foreign goods

DIP SpA v. Comune di Bassano del Grappa

foreign law risk; Italian law required licensing for certain practices, upheld to German company who filed suit

foreign subsidiary

foreign subsidiary: company under laws of the host country, but owned and controlled by parent company in home country

passive personality jurisdiction

gives a country the right to hear cases stemming from crimes committed against their own citizens by non-citizens outside of their own territories

Direct investment

go into country and start a business

inherent powers

granted by the constitution or those to be found there by judicial interpretation (e.g. appoint senators and make treaties with 2/3 senate vote)

U.S. Commercial Service: home and abroad to assist U.S. firms in developing export opportunities

home and abroad to assist U.S. firms in developing export opportunities

Tariff

import duty or tax imposed on goods entering the customs territory of a nation

Trade

import/export/trade-in services

global quotas: imposed by an importing nation on a particular product regardless of its country of origin

imposed by an importing nation on a particular product regardless of its country of origin

Presudent may make an adjustment to imports if...it will help the domestic industry make a positive adjustment&provide greater economic/social benefits than costs

it will help the domestic industry make a positive adjustment&provide greater economic/social benefits than costs

International Court of Justice: judicial body, arbiter of international law disputes; has jurisdiction that involve a treaty, convention, international obligation, or question of international law

judicial body, arbiter of international law disputes; has jurisdiction that involve a treaty, convention, international obligation, or question of international law

Public international law

law between nations

non-tarriff barriers

laws or administrative regulations that have the effect of restricting access of foreign goods or services to a domestic market

trade balancing requirements: laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports (prohibited by TRIMS -WTO trade related investment measure)

laws that condition a company's right to import foreign goods on the basis of the volume of goods that company exports (prohibited by TRIMS -WTO trade related investment measure)

convention

legally binding multilateral treaty on matters of common concern

stare decisis

let the decision stand

gray market: license IPR to another country, dollar drops so someone in original country buys from them instead of you

license IPR to another country, dollar drops so someone in original country buys from them instead of you

export subsidy (banned): made available to domestic firms upon the export of their products or made contingent on export performance

made available to domestic firms upon the export of their products or made contingent on export performance

global safeguards: measures placed on imports of specific products without discrimination as to their countries of origin; must be applied globally to all like imports; no longer than 4 years

measures placed on imports of specific products without discrimination as to their countries of origin; must be applied globally to all like imports; no longer than 4 years

international law

mostly treaties, international custom, general principles of law

compulsory jurisdiction: nations that agree in advance to submit certain types of cases to the ICJ have this, however too voluntary

nations that agree in advance to submit certain types of cases to the ICJ have this, however too voluntary

US Department of Treasury: near total control of US currency moving in and out, and control of US banks worldwide

near total control of US currency moving in and out, and control of US banks worldwide

WTO agreement on Technical Barriers to Trade: non-discriminatory, no unnecessary obstacles, scientific info, performance abilities basis of requirements, international standards used, work to harmony, standards published and timely

non-discriminatory, no unnecessary obstacles, scientific info, performance abilities basis of requirements, international standards used, work to harmony, standards published and timely

specific or flat tariff

on the basis of physical units

Foreign branch

operations in the home country, but may be a branch office or whole network system in foreign country

import substitution subsidy (banned): payment is contingent on its recipient using or purchasing domestically made goods over imported goods

payment is contingent on its recipient using or purchasing domestically made goods over imported goods

International Trade Administration (ITA): performs many of the trade promotion, market access and import administration functions

performs many of the trade promotion, market access and import administration functions

Section 301 of US trade act 1974: permits US trade rep to take retaliatory action against other countries whose trade policies toward US are unreasonable/discriminatory

permits US trade rep to take retaliatory action against other countries whose trade policies toward US are unreasonable/discriminatory

Universality jurisdiction

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 perps or victims (piracy, slavery, war crimes, torture, genocide)

private international law

person to person, company to company

Case: Union carbide corp gas Plant Disaster at Bhopal

poisonous chemicals leaked from a subsidiary in India to an American corporation, court upheld that the lawsuit be held in India by forum non conveniens

Act of state doctrine: principle of domestic law that prohibits the courts of one country from inquiring into the validity of the legislative or executive acts of another country

principle of domestic law that prohibits the courts of one country from inquiring into the validity of the legislative or executive acts of another country

Currency controls:

prohibiting residents from making payments in foreign currency, any foreign payments unless on gov approval or through authorized bank accounts, the removal of foreign currency by those traveling, and the exchange of foriegn currency for local currency at other than the official rate of exchange

WTO 1995: put dispute resolution procedures; believed in transparency (rules readily available)

put dispute resolution procedures; believed in transparency (rules readily available)

Prior approval: regulated products must undergo testing and inspection, receive certification, then prior regulatory approval; prior certification same minus last

regulated products must undergo testing and inspection, receive certification, then prior regulatory approval; prior certification same minus last

U.S. Bureau of Industry and Security: regulates the import of sensitive goods and technologies for national security and foreign policy, and administers U.S. export laws

regulates the import of sensitive goods and technologies for national security and foreign policy, and administers U.S. export laws

local content requirements: regulations dictating that a foreign company or other producer must use a certain minimum percentage of locally made parts or components in the manufacture (prohibited by TRIMS)

regulations dictating that a foreign company or other producer must use a certain minimum percentage of locally made parts or components in the manufacture (prohibited by TRIMS)

licensing

renting intellectual property in exchange for royalties (in franchising, one must adhere to all rules of base company)

United States Trade Representative (USTR): reports directly to the President; USTR carries on all bilateral and multilateral trade negotiations on behalf of the US; much responsibility

reports directly to the President; USTR carries on all bilateral and multilateral trade negotiations on behalf of the US; much responsibility

Political question doctrine

requires courts to consider six factors before dismissing lawsuit on political question grounds: 1) constitutional commitment of the question to the executive or legislative branch 2) lack of judicially manageable and discoverable standards for resolving the question 3) impossibility of resolving the question without making a policy determination of a kind clearly for nonjudicial determination 4) the determination of the question will result in the expression of lack of judicial respect for the executive or legislative branches 5) the need for adherence to a perviously-made political decision 6) the potential for embarrassment of the US government by differing pronouncements of policy by multiple branches of government

non-self-executing treaty

requires some additional legislative act before it becomes enforceable in national courts

Mobile Communications Service v. Webreg, RN 2006: respondent registered domain name in bad faith

respondent registered domain name in bad faith

Arizona v. U.S.: sections 3, 5c and 6 are preempted by fed law and are invalid, section 2b is valid

sections 3, 5c and 6 are preempted by fed law and are invalid, section 2b is valid

indirect non-tariff trade barrier: seem neutral, take form of laws, regulations, or rules of administrative agencies that make it hard or costly to import

seem neutral, take form of laws, regulations, or rules of administrative agencies that make it hard or costly to import

Transfer of technology

sharing of scientific info, technology, and manufacturing know-how between firms, universities or other institutions; accomplished through complex licensing agreements (e.g. patents)

direct non-tariff trade barrier: specifically limit imports of goods or services, or deny access of foreign firms to local markets (e.g. embargoes, quotas)

specifically limit imports of goods or services, or deny access of foreign firms to local markets (e.g. embargoes, quotas)

Sovereign immunity: states that the courts of one country cannot hear cases brought against the government of another country and that courts cannot involve themselves in the internal affairs of a foreign country

states that the courts of one country cannot hear cases brought against the government of another country and that courts cannot involve themselves in the internal affairs of a foreign country

Trade Promotion Authority: statute that gives the president authority to negotiate trade agreements pursuant to the objectives set out by congress

statute that gives the president authority to negotiate trade agreements pursuant to the objectives set out by congress

absolute quota: strictly prohibit imports of an item above a pre-determined limit, based on either value or quantity

strictly prohibit imports of an item above a pre-determined limit, based on either value or quantity

expropriation

taking by a government of privately owned assets with some compensation

confescation

taking by a government of privately owned assets without compensation

tariff-rate quota: tariff rate increases according to the quantity of goods imported

tariff rate increases according to the quantity of goods imported

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

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

bio-piracy: the use of another country's plants for profitable use

the use of another country's plants for profitable use

allocated quota: total limit is allocated among several specific countries

total limit is allocated among several specific countries

free trade agreement: trade agreement with broader coverage, special tariff and customs provisions govern items being traded between the two countries

trade agreement with broader coverage, special tariff and customs provisions govern items being traded between the two countries

3 forms of international business

trade, licensing and direct investment

nationalization

transfer of private-sector firms to government ownership and control, usually with payment to shareholders

Types of crimes in international business

transnational organized crime (cybercrime, smuggling, human trafficking) and transnational business crime

The Paquette Habana

verdict reversed; under an established rule of international law peaceful fishing vessels are exempt from capture as prizes of war

Commerce Clause

vests the fed with exclusive control over foreign commerce

treaty v. domestic law

whatever is signed last

Comity

willingness of one court or department of government to respect the rules or decisions of another or to grant it some privilege or favor; judicial doctrine, not international law

Trademark: word, phrase, design, etc. only lasts as long as the product

word, phrase, design, etc. only lasts as long as the product

UN Convention Against Corruption

165 contracting parties; calls for nations to 1) criminalize the offering or giving of a bribe 2) criminalize money laundering 3) improve enforcement by changing national bank secrecy laws 4) establish corporate criminal liability for legal entities

GATT 1947-1994: 23 nations; never ratified as a treaty, only a binding legal obligation of the US under international law

23 nations; never ratified as a treaty, only a binding legal obligation of the US under international law

US Court of International Trade: 9 judges who hear cases arising from the trade or tariff laws of the US

9 judges who hear cases arising from the trade or tariff laws of the US