ch24: International and Space Law

Antidumping Duties

Dumping: sale of imported goods at "less than fair value." Foreign firms that engage in dumping in the United States hope to undersell U.S. businesses and obtain a larger share of the U.S. market. To prevent this, an extra tariff—known as an antidumping duty—may be assessed on the imports.

^ export

To sell products to buyers located in other countries.

normal trade relations

Trade status granted; each member nation must treat other members like the country that receives its most favorable treatment.

prohibition

Under the Trading with the Enemy Act, no goods may be imported from nations that have been designated enemies of the United States. Other laws prohibit the importation of illegal drugs, of agricultural products that pose dangers to domestic crops or animals, and of goods that infringe on U.S. patents

# civil law

primary source of law is a statutory code. Courts interpret the code and apply the rules to individual cases, but courts may not depart from the code and develop their own laws. Judicial precedents are not binding, as they are in a common law system.

* three sources of international law

-international customs -treaties and international agreements -international organizations

Under the New York Convention, a court will compel the parties to arbitrate their dispute if all of the following are true:

1.There is a written (or recorded) agreement to arbitrate the matter. 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 U.S. citizen. In other words, both parties cannot be U.S. citizens.

@ Act of State Doctrine

A doctrine providing 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 - frequently employed in cases involving expropriation or confiscation

% Foreign Sovereign Immunities Act (FSIA)

A foreign state is not immune IF: 1. foreign state has waived its immunity 2. foreign state has engaged in commercial activity that has "a direct effect in the United States." 3. foreign state has committed a tort in the United States or has violated certain international laws 4. foreign state that has been designated "a state sponsor of terrorism" is sued for "personal injury or death that was caused by torture/terrorism.

$ manufacturing abroad

American firm can manufacture in other countries by licensing and franchising, and investing in a wholly owned subsidiary or a joint venture.

((

Congress can restrict or encourage exports via: 1. set export quotas, or limits, on various items, such as grain being sold abroad. 2. Restrictions on technology exports (under the Export Administration Act of 1979) 3. Incentives and subsidies to stimulate exports and thereby aid domestic businesses.

Two U.S. government agencies are instrumental in imposing antidumping duties

International Trade Commission (ITC) and the International Trade Administration (ITA) ITC assesses the effects of dumping on domestic businesses and then makes recommendations to the president concerning temporary import restrictions. ITA, which is part of the Department of Commerce, decides whether imports were sold at less than fair value. Fair value is usually determined by the domestic price of the goods in the exporting country.

Space law

Law consisting of the international and national laws that govern activities in outer space. consists of international treaties—primarily negotiated by the United Nations (U.N.)—and U.N. resolutions

Quotas and Tariffs

Limits on the amounts of goods that can be imported are known as import quotas Tariffs are taxes on imports. it raises the prices of imported goods, causing some consumers to purchase domestically manufactured goods instead of imports.

NAFTA (North American Free Trade Agreement)

North American Free Trade Agreement (NAFTA) created a regional trading unit consisting of Canada, Mexico, and the United States eliminate tariffs among these three nations on substantially all goods by reducing the tariffs incrementally over a period of time. retaining tariffs on goods imported from countries outside the NAFTA trading unit. elimination of barriers that traditionally have prevented the cross-border movement of services, such as financial and transportation services. attempts to eliminate citizenship requirements for the licensing of accountants, attorneys, physicians, and other professionals.

trade barriers

Restrictions on imports To minimize trade barriers among nations, each member country of World Trade Organization is required to grant normal trade relations (NTR) status to other member countries

$ franchising

The owner of a trademark, trade name, or copyright (the franchisor) licenses another (the franchisee) to use the mark, name, or copyright, under certain conditions, in the selling of goods or services. franchisee pays a fee

(( tariff

U.S. Constitution bars Congress from imposing taxes on goods produced in the United States and exported overseas. Congress may, however, impose tariffs on goods produced overseas and imported for sale in the United States.

^ indirect exporting

U.S. company appoints a foreign agent or a foreign distributor in foreign country U.S. firm and the distributor enter into a distribution agreement (contract setting out the price, currency of payment, guarantee of supply availability, and method of payment...)

$ joint venture

U.S. company owns only part of the operation. The rest is owned either by local owners in the foreign country or by another foreign entity. All of the firms involved in a joint venture share responsibilities, as well as profits and liabilities.

^ direct exporting

U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment for the goods

$ licensing

U.S. firm may license a foreign manufacturing company to use its copyrighted, patented, or trademarked intellectual property or trade secrets; allows the foreign firm to use an established brand name for a fee

if no arbitration clause in contract:

a forum-selection clause indicates what court, jurisdiction, or tribunal will decide any disputes arising under the contract. A choice-of-law clause designates the applicable law.

Republic of Korea-United States Free Trade Agreement (KORUS FTA)

aimed at eliminating 95 percent of each nation's tariffs on industrial and consumer exports from the other nation

Trans-Pacific Partnership (TPP)

aimed at increasing U.S. exports to China, Japan, and other Asian nations and eliminating or decreasing tariffs charged by those nations.

Alien Tort Claims Act (ATCA)

allows even 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

%

both the act of state doctrine and the doctrine of sovereign immunity shield foreign nations from the jurisdiction of U.S. courts. As a result, firms or individuals that own property overseas generally have little legal protection against government actions in the countries where they operate

# legal systems around the globe generally are divided into

common law and civil law systems

# common law

courts independently develop the rules governing certain areas of law, such as torts and contracts. (incl US) *apply to all areas not covered by statutory law

Title VII

does apply to American companies no matter where they are doing business, but there are exceptions. Title VII allows a company to discriminate if it would violate the laws of the foreign nation to follow Title VII.

Rescue Agreement

each nation will undertake to rescue and assist astronauts in distress and return them to their "launching State." All nations are to assist in recovering space objects that return to earth outside the territory of the launching state.

* international customs

evolved among nations in their relations with one another "general practice accepted as law."

Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR)

formed by Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States reduce trade tariffs and improve market access among all of the signatory nations

outer space treaty

foundation of international space law outer space is declared to be free for the exploration and use of all nations. The moon, the planets, asteroids, and other celestial bodies are not subject to the appropriation of any single nation. space objects are to be used exclusively for peaceful purposes. No weapons of mass destruction are permitted in outer space each nation is responsible for its activities in outer space, whether they are conducted by the government or by a private entity. activities of private entities require authorization and supervision by a government each nation retains jurisdiction and control over its space objects and the personnel on them. imposes on each nation liability for damage caused by its space objects requires that space exploration be conducted so as to avoid "harmful contamination bans the national appropriation of territory in space

@ Expropriation

government seizes a privately owned business or privately owned goods for a proper public purpose and awards just compensation

@ confiscation

government seizes private property for an illegal purpose and without just compensation

% Doctrine of Sovereign Immunity

immunizes foreign nations from the jurisdiction of U.S. courts in Foreign Sovereign Immunities Act (FSIA)

restrictions on imports

include strict prohibitions, quotas, and tariffs.

International law

laws that govern relations among nations (incl. International customs and treaties) If a nation violates an international law and persuasive tactics fail, other countries or international organizations have to take coercive actions (ex. economic sanctions, severance of diplomatic relations, boycotts, and, as a last resort, war against the violating nation)

space debris

objects made by humans in orbit around the earth + no longer under any party's control

international organizations

organization composed mainly of officials of member nations and usually established by treaty

$ subsidiary

parent company remains in the United States. 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.

Registration Convention

provides for the mandatory registration of objects launched into outer space. Each launching state is to maintain a registry of the objects that it launches into space. The intent is to assist in the objects' identification.

principle of comity

provides that a country will honor and enforce within its own territory the judgments and decisions of foreign courts, as long as the acts are consistent with the law and public policy of the accommodating nation

Liability Convention

provides that a launching state is absolutely liable for personal injury and property damage caused by its space objects on the surface of the earth or to aircraft in flight. Liability for injury or damage in space is subject to a determination of fault. The convention also prescribes procedures for the settlement of claims for damages.

Federal Aviation Administration (FAA)

regulates private spaceports and the launch and reentry of private spacecraft under the Commercial Space Launch Act

U.S. Commercial Space Launch Competitiveness Act

streamlines regulatory processes and promotes safety standards. if a U.S. citizen or company retrieves minerals or other resources from an asteroid or other space location, that person or company owns them.

* treaties and international agreements

treaty = agreement or contract between two or more nations that must be authorized and ratified by the supreme power of each nation (in US, prez requires 2/3 vote in Senate)