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