Business Law Business English ARobin Widdowson EL Ay | = | | rixascrat mmPearson Edvation inte inbuah Gate ato seer IE England apd Ascated Companies thoughout the wo ‘em gersonlngran com (© Pearson Education ined 2080 Thesght ofARobinWiowson tobe Mentied a author of tis orkhas been asserted by hi in accordance with te Copytigt, Designs ana Patents At 985, sighs reserved no part of tis pubeatn may be reproduced, Storeain areas, oarsmen any form by Snymeanselacronie mecha, protcopyng. eordngoF ‘thers hou the ar ten emlsion a the PuBsber Fist published 2010 1S 04 9784408220054 Set Metals Times ITC Cheeshom Pntedn Slovakia by Neosrta Acknowledgements Ths abner was deveoped and writen by constants woking wth Us anng and Cansutng, Bath, aspect language and ‘nee ang company. ‘The author and publishes ate att to Natale Rick who repaid on eae dats of his material Te author woul ke to thank us Bowes othe very welcome "upartand pate, Babar Wideowaon fo encouragement and ‘alan Pibear forth oportuiy wit th. We are graft the flowing for pemison to reproduce copra mater tert Entrant 2 ape om Company lawyers get wider fale in snes, The incl Ties, ly 2005 MUraR. 5), ‘apytign © Sarah Mura act n Unt aes of city fer coprate lawyers, Te Financia Times, uly 2005 ua. 5},copigh © ara uray; envacin Unit 9 (Page) adpted from Doc No Econ 12-00 ‘Ateatvcspte esol the Context of econ commer Ferry 2000, waco oprah © TACD;Exact in Un 5 Hom "olyrond wanes Inceses yes epresentatio The Econom Tne, 3 October 3307 (Ganguly 0), copyright 2010, Benne, Coleman 8, ita lrgts eserves Extract in Unit om General des of teglayerstotheireployes Under Health on aft at Work At {976 Crown Copyright mater reproduced wth emision der thetarms fhe Ck se Lense; exacts in Ut for Contac, {ov stmedkon Longman ut, Cand Gunn, F260) copraht (© Pearson Euestion is Exact int 5 om Business a, “dean, Longman (Macintye, €.2005) copyright © Pearson Euan ds tact n Unit adapted om Uap ofa, The {Lawyer 27 Octobe 2008 (Far Ata, A), wel cam, ‘capmignt © The Lawre, ‘The Fecal Tnes ‘rat in U's rom Abitaton rtered in cross-border ‘Sept’ The ronal Tes, May 2006 at), copie © ‘Te inancal Times td; Exacta Unk om igh an og ‘holes nthe market fost The Parl Tins 21 Mah Soa.) coptign © The Fania ines Ld Exact in Unit 6 from tame ot GE seks $5c0m In genders as The Fiance Times, May 207 Oss, Band Gaeea, Fy copygh © The Finacial Times Eten Unit adapt om EU employment law ach The Financ Tine, 25 Api 2008 Waphoess Rand fobinsn A copight © The Fnanclal Tines Ud Exact in Un om ie ling spark fessor MAI China, The anal Tins 30 November 2008 Tucker 5), copyigh © The Franca “es td; Exactin Unit om ‘Diogo wns whisky pac case inchint,The Financ! 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Te FenciaTines, 21 November 208 Mules, 1), opyight © The Fnac Times {tej xt in Ut ftom Thinking abou Pau he arc Times, 17 Odabe 208 el ik), coppight The Fancal Tes Udrextatin nt om dusty wars on EU pluton a he nana Tes, 7 ant 2008 [Bounds A copyright© The Financial Times Etractin Unt 6 adapted om Secrets of “ces, Ie Fnac Tine, 26 Maoh 2009 Burton), copyright ‘Othe Pani ines Ld rat nit 7 for sie ang sertence highghtcacdown, Te anal Tine, 4a 2008 {ante 8), copyigh © The Financ Times td Insomeinstances we have been unable to tace the ownersof ‘Soyight material and we would ppredte any information that wouldensbe ut 080 Photos ‘The pulser would eto thank the folowng forthe kind permission a reproduce the poloeraphs: (te: btm: cen et ets 9) ‘amy image: in Food & Dik 37. meaber ob Denis (Regan s3 DK images an Oat 29: Stockghato: 6, Antony aapt 7, lsandrHaleman 9, ain Addl Hoi 3 Lat Kein 33 caterine Yuet 73 Jpter Uli: Stacker 15,65, Thntstck mages 4st PaneRStck: Dg Vision 25, ex Feature: Eee / oe nemationl as shaterstcks stASC 5 ‘ert nas been made force he copyright oles and we ‘plage advance or ay unintentional amssions. We would De leased toinse the appropiate acnawledgment in any "ideequnt dono hs poneaton coverphto © Gat inageselSpienan Prec managed by Chis Hartley [aj bes marked ith ti yma ardent {cover sire fore EC odin tesIntroduction to business law 11 Business andthe law 2. Inhouse lawyers 3. Handling intemational disputes 4 ifferent counties, diferent legal systems Operating globally 5. Bollywood needs lawyers! 6 Practising diversity 7 Intemational mergers and acquisitions '8 Cybercrime ~a worldwide threat Business Law challenges 9 Protecting intellectual property 10 New ways of dealing with aud 11 The costs of pollution 12 Asafe workplace? Contracts in the business world 13 Contact aw 14 Terms and condition: the language of contracts 15 Acase law report Business law and finance 16 How taxlaws can create business 17 Insider dealing 18 Sharia law and international nance heck Tests Answer key Glossary Useful websites 2 16 2 2 36 BES 52 56 ues 16 80 »ETH ema acl Businesses cannot be run without taking into account the many laws and regulations, codes and standards that have been developed over the years to regulate the way commerce operates throughout the world. This unit looks at the way businesses are affected by legal issues. Discs tase questons 1 iat wt ate an themes tet ill eset rantocrgconpant asamp eH permet be corered incor tnnlomer Wha eat nS depres Fare dpren? he op hon oo ssateach depart 2. Wht lnsof tel cin might be nade agus compry bene up orcompeitnt fad asteeibaga on cpr maa ae ‘Understanding the main points tead hari othe pps page and answer ese quesons 1 Wh or geenl es of ning bss re penta ein? 2 Hor woo. debe Segre omenn ta am ating hot Wn shut we Understanding details Read the article again and answer these questions. 11 What kind of products does Elegance sell which have more than simple cosmetic properties? Why s this important? Which people are described as being affected by the law both insde and ouside the company)? What is important froma legal point of view about the way job is advertised? ‘What kindof responsibilities does a manufacturing company have towards consumers? ‘Whats important from a legal point of view about how products ae advertised? ‘Why is intellectual property law important for companies lke Elegance? ‘Which avs are relevant for Elegance as regards the working environment nits ofces and factories? ‘What can companies do to reduce the amount of axthey have to pay?UNIT» BUSINESS AND THE LAW How does the law affect the business world? ‘A An interesting nay to understand the Wrerargng tect hat aw reputions find codes have on the day-to-day | operations ofa busines ito create 3 Hetious company, ten consider how ferent aspects of that company come ino contact win the aw B Lets say our company isan inter Bp atonal comets onan Cleans, sd inPoris ith offesin aro, sia, the Mile ast and Norn mecca and Imanutactring plats i Europe, Cia, Inala ane South Ameria, Te company 1 makes an sels 0 wide one of creams ‘taps perros on hair etment yaable under several famous brand ames It aso proaues meicted sn fare products thse are manutacturedin "> Cero Europe an contain mena Ingredients sed under leence tom 2 pharmaceutical compar {© © Toget abroaa pete of ow te lw fan have an impact an company ike 2 Blegance we can aie the organisation Ino four gereralareas peopl prodcts premises andprett. Poop Hera wethink about empoyees, manage ment, shareholders and customers, Elegance has empoyees ins factories andoftces so they wi reque centate ‘St employrant. tore anybody canbe ‘ecruited for a ob, the postion 1s ‘versed =the HR eportment wl be “mare of ste laws relating to sci inaton, vers ard equal oportunti, tan ere uty of cong. procedures must be observed tllowed Somatimes by sara. The company is un by the directors and management they are ole to {ut crt ates and to perform Ina responstve way on bel ofthe share holers theultimate owners of the compan: The rectors mut ke oper records of he nal status ofthe co. ‘any: the company’s legal status ‘over what irtermation made salabe tothe pu "The people whe buy an use Elegance products expect them tobe sate andr. Ble. These customers have hs under ensue protection on, {6 Poor quality contol may result in 9 Serious product abity lam against Eegance, perhaps valving beta ‘mart or rages In ation to aly Control, the company must consger Advertising, packaging ana labeling Fequirements, Clegance must cosely monitor what it say aout ts progcts {i hw ts sale. Pharmacetes pro ‘ets wl need to comply with stit ‘medcnes gation Eagan factories tl nae contrat fo the suet of ra materi breach of cotract ay eo to gation. Te company must eaetly protect ts tte property rats =i ants o avd iningement of patents {Madears na copyeant, Premises Consider Etegance’s premises it and and buligs s Elegance owe ofthe Feast or oes rent aces or facto fies? as an employer, Elegance must ‘oserve heath ana sae lesion in {he factories and inthe aces. thas uty to provide employees with a sate Wwotkng environment Profit 7 1 Aprnciplaimf an xganisation such ‘s Elegane i fo mate money every year Corporation taxis payable on profs tas lamyerscan range schemes ga at aolaanee, bt not tx evasion, That 3 ‘revnal fence Cenctusion 1. Tiscapstourrundite eto coset lcscompany Elegance stud domonstate that very Tew aspects of runing a pial ommmaci enterprise exeape te i 4 ence ofthe la essential for every ‘ornpany tokeplse alynermeda a reevant ans and reguationsUSINESS AND THE LAW DN Word search Fad ors or phrase te re hh hte mets as fat comet bess ce wh et nth oe Gao) ca pertotn staan oom bossa {eens berm npr and aeons becraah escent cry ong oar hi are od Gere) ie pay ube ont Spc ca ‘the legal standing of a company (paragraph ) tel legs et tea past at chr am ouch) 10 amen rere bys to a As ly cme) +11 written laws (paragraph 6) 12 when a contract is broken (paragraph G) 13 going to court (paragraph 6) 14 cone soveonts nce GS 15 a word describing a building and the land it stands on (paragraph 4) 26 oper feet han 2) atgroh Sreiepaa. ua rtapenaar bones Word partnerships ‘Match the adjectives (+s) with the nouns (-) to form word partnerships rom the article. equal 8) protection Aisciptinary ) estate consumer ©) offence real 1) procedure criminal ©) opportunities Sentence completion Use the word partnerships from ExercseBto complete these sentences. 1 The women in the office felt they hadr’'t been offered when compared with thelr male colleagues. Saying your competitors make bad-qualty products may be commercially unwise, but is ita 2 We dealin ofces, factories and ather kinds of He was late again! We will mow have to follow the company and give him a witen warning. legislation has gown over the last 50 years. The buying publicisnow ina much stronger positon.UNIT. +» BUSINESS AND THE LAW Legal terminology 1 Complete the names of these different areas of law. 11 the aw relating to hiring and fring ela the law that protects the buying public eon ‘the la regulating the manufacture and sale of pharmaceuticals lO the le eating toa share of profits pad tothe state tna the law concering the well-being of employees roe Md SLOW Complete these legal expressions using the correct prepositions, check your answers with the article. Their products are made... cence, (One of our employees was guity......setious misconduct,” ‘Amember of the public made a claim... the company. All manufacturers must comply....the new safety regulations. ‘The suppliers didnot delve the goods on the agreed date. twas a clear breach... contract Oo 1 Think ofa well-known manufacturing company in your country. Give a five-minute presentation ‘explaining the genera areas of your countrys law thatthe company needs to observe. 2 Discuss witha coleague what you tink the legal iferences are between managing a large ‘manufacturing company, such a Elegance, anda small company, such asa consuitancy, with about 10 taf, providing service only to local people from one office.“—_ Mea This unit looks at how in-house corporate lawyers are nowadays called upon to use more than purely legal skills. Discuss these questions. 11 How do you become an in-house layer in your county? Why might a lawyer prefer to work ina ‘company rather than in a firm of lawyers? 2 What factors might influence a company inthe decision to have its own in-house legal team? 3. Corporate social responsibility (SR) concerns the way a company caries out its business —for example, it might be taking part ina socal programme that benefits the community, What other ‘socially responsible’ activites do you tink a company might involve itselin? Understanding the main points Read the aitice on the opposite page and answer these questions. 1 Why are company lawyers being asked to take a broader role inthe companies they work for? 2 Who favours corporate layers taking a wider role, and who believes lawyers may not be the right people to make CSR decisions? 3 Which areas of business are represented inthe article? Understanding deta ttt ce nd a ato. 1 hn end of pampeph A ag} ot oan yas Wt er haan {Wehr sane gente ate acer iy cig ee rset vc toh gees ca ba ei nt on og ats ALG oT rer cra BS Cre cet atthe bet ta tou ena a aoa Micra ok wnnronr sso la peso Ras hdiran Gor acne ue AO ASO st enetscranrrigumc CN SSR de tno eer al SW SCE Ue cho oin 2 3 4 5 6 7 8 °UNIT. IN-HOUSE LAWYERS ompany lawyers get a wider role in business ‘Sarah Murray aes Sitar eps els eee eee yeep Seni cul aymectvea Mer igd coor -thaires ie plevaiccoy vee evec Present of Caper Atos I peor crea ss Ceres ie dine company. haven ha Ido tt sve yon ie ce cies neg terre Arcoprnciase sce acs bes fo ee eee eee cris pei comain nod cee Bivcige prtiene ter, et ecerenerease Sewing creas he Uoupni ave bet inser ieee 2 trates etl cpio om Gaieep? 1 Aueye esl menimeneres in ay ily ants, Alvdiuwsiinncsmiecvead | wabtsfete Viereeenct Darter inthe corporate social respon; contrat diligence, i-house lawyers Global Affats at Gap, Elio Schrage. Gilly preee' Foley Hows. Seah helping compan ake ® _Srucn tat tere anther good Washington DC-based law firm. ‘broader approach to managing social 75 reason for getting legal departments ee eee crepe ceases they Belen rcbie baccarat west eo i age ete fav pesivalw ai Ws Rimage” compardwitoureny movensas which BRS far ot Grn 4stout ey ae bet tn enn cere he gies coda inieey insta Cpu _» bowinaby mitten pega Inst ocen survey conducted by" swthas Liz Come Copamd Nike J eey Kin, ViceChasan tnd MSC McKew, Utd ae aong hw hat hak te ager Cons Ps hp nethloenorexccmes _ Soxdbyatrsneatbopcampalgnom Sea company” fives a he lenisecchcttsccaretas G "‘Cofane lnyes say amine Oalcelnen of ts lav and te ey eee at ge eat eee ae res eee era Une ere etna Bs md. Mire ton tafe a ‘Suc ne freon Wehr 6, aS eae Bas a ed on corre (Sti eeeniay futons tere [27 ate ee a one ergs ce cata Marae teenie aeons ie yh eee eee f » aap”UNIT. ++ W-HOUSE LAWYERS. Sore DD Word search Find words or prass inthe atl which these meanings. “Ym ot here in my capacity asa lawyer (paragraph an American expression meaning ‘senior legal advise (paragraph A) ad cca tetera oa camgar Groh )crfocate Seeraé expfensibelty matters, problems (paragraph 8) /SIUeS congo tus rues of conduc without the fore of aw paragraph 8) : law fim, ora specialised part of alaw im (paragraph ©) Steer “CE to cova opal Gage Da vetinarian wane Aig, coche nt MRtOel tas eas yonceh a eit fay pom! 10 checking that contacts meet ivements (paragraph ®) oateact elidrg-Crice. 21 ova a ease oie cases 12 asenior member ofa law frm (paragraph @) pote? bien eer eas 13 notinfluencedby personal wishes or elings (paragraph) Be ef? Ve 14 relating to moral rather than commercal values (gargraphiy Off icaak 18808 Word families ‘Complete the chart with words from the article. ‘ach tobreach sie WMI a eaphy arbeaae- bop comply wih « assessment anticipation response Sentence completion tse at ton arn cme om nota preg 1 tisessemal to check that we hve fly with the new regulations. 2. The.....t0 our survey was beter than expected, Over 6% 6 people contacted gave their opinions. 3: they dona delve on time, the Wilben....of thei agreement with us. 4 Wssometines ifetto...howellecveanewiawis. , crbado om 5 Dot think only about what we as suppers wat You mustalso...what they as drchasers might be king for. That way. we might ame to an agzeptabe arentText completion LUNIT2 ++ IN-HOUSE LAWYERS hone te bes word ot gph te coe A blow he ea Areas of activity for porate lawyers Litigation: ..' based on alge ilies cap th Casal oC meet Contract governance 10 incorporation of a company's codes of conduct and ethical practices into contracts with {hind-party suppliers to they follow the same ethical vs standards ‘Risk management: ‘5 company compliance with boa identification of potential Tegal wo... and in-house obligations to behave ethically inal busines activites. a 8 1 processes udges 2 laws rules 3 sant crock 4 Grovsion 5 participants managers Vocabulary development 1 tigation (ines) a) taking legal action in court ) writen ows 2 alleged (ine 2) 2) proved in court +b) dlalmed but not yet proved in court 3. obligations (ine 7) 8) things you must not do +b) things you must do Ooo liabilities that might affect a company's reputation, share 2» prceand cence w operate, and c ° ee aang Tequest asking 7 advice on how ich rks, awareness: potential for senior comporate lawyers t0 2s bring broader ise of sustain ability and corporate respon Pot FT eases fete Bemparnt ‘Choose the best explanation foreach word from the extract in Exercse 0. 4 governance tine 9) “a controling and guiding dee ) preparing and writing 5 tomitigate (ines 21-22) a) to-liminate +b) toreduce Iisa {6 sustainability ines 25-26 +a) ped ff resources for future generations )_maintaining high eves of profitability 41 Explain toa colleague whether, n your county itis easy to change from being an in-house lawyer to being a private or state lawyer, and vice versa. Which job would you prefer, and why? Find out the main diferences between a solicitor and a barister nthe English legal system, then compare their functions with an American attorney. Can they all become in-house lawyers? Present a brief overview to inform someone who isnot alegal specialist. Do some research so you can elthergve a brief presentation (ive minutes) or write a short report (300 words) illustrating how a company can demonstrate that itis ‘socially responsible’. Use real examples,Handling international disputes Thjs unit considers different ways of settling cross-border disputes between multinational companies. Instead of going to court, the companies can choose the arbitration process - a specially appointed person or panel- decides how the matter should be resolved. os Discuss these questions. cuaglece Seco 1 zis tag ANN i ct rere tons aed ‘Smet nates hat dt Sopt doo a ae? mana?” 2 What are the disadvantages of tigation between companies from diferent countries? Are there any advantages? 3 Why is arbitration sometimes thought tobe beter than going to court? Understanding the maln pols faa the arte onthe oppose pig and anor tee gunn, 1. Wis oe lth orto shu soranea lent 2g ene to 2 lscostamalnacorin peering hatin pocest gan? +: RSS eee Vr nrera »ate rsalgeo? Understanding details Read the article again and answer these questions. 11 Name thre key reasons for in-house general counse to favour arbitration. 2. Inwhieh specie area ate arbitration costs sad to beat least the same as those fr Itigation? 3. How do lawyers feel about the idea of being able to appeal against arbitration decisions? 4 How does the article describe the general business environment atthe time the report appears? 5 Ace arbitration procedures becoming more comman or less comman? Provide some evidence to back up your answer, ‘ive detals ofthe companies represented inthe study. Give details ofthe findings ofthe study. 6 7 8 What three reasons do lawyers give for avoiding litigation? ° ‘Are arbitration decisions always accepted without question? 10 Which reason was given asa cause for concer for both arbitration and itigation eeebby Nikki Tait ‘A Thyeo out of four op lawyers at muli> national companies would prefer to sete cos-boner commercial ispes by arbitration rather than cease ofthe unpredictability of | decisions made by focal cours. Key ese 1 Gy ie ae Shona hp es ae? Berea pet we eter Deepens lignin pesciaty forty smal eps" Mos ae Redes ne ees Sen Tor sniraion deco = ees ere tp cere Be sone of te ea inca ak ——— SEY nog eter Macomb einidbece sit redo dens ot topredieiat eaten Ts findings fre the rorslt of 4 Sion acne aes FiscentncCope re) oh ‘ech ony Gos Mays St Sincacas Sesen oe Ga “eyo toni ce >See met ran So or pues waa airren a Powis osct sb tin aod cite ADR late top na ene ne pl he incre Cher Samecies au sania ie eee renee ‘bitnon A eoa yeus ere eres ae Beste at cate ite tly tae corm ot responses of mare than 100 in-house general counsel at multinational 4s Corporations. About half ofthese were Jn Burope, 30 per cent in Asa, and 15 et cent in the Americas. Most had Sa sles tant $800, According tothe findings, 73 per St contofthose questioned refer tose Intemational abivation, either on is ‘own or in-conjunction with other #co“e<< ‘Sgt resolaion mechani, such ss ec waitin, By contrast cross-border. ington was favoured by oly 1 per cent, Gerry Lagerberr, PwC parte, Said that his smaller group tat stil [refered ligation general wed ery Specialised courts for example, ptt o courts —oreperatd manly in counts, ‘with well regarded cour 1 fo RE os oa ene eee eer mes eee aaa eee coaeeitmement see ie Sieape'Semunen mee ae oe tg respbndents rejected the idea of includ- eater ee ee eee See aUNITS» HANDLING INTERNATIONAL DISPUTES ro TY Understanding expressions ‘Choose the best explanation fr each ofthese words and phrases fromthe ext. 1 ‘nt sete cross-border commercial depute. nes 2-3) 2) argue your poston nadspute 8) agrees soluonto te dispute 2 ‘athe lack of publicity surrounding hearings .” lines 9-10) 13) court eases 3) judges’ decisions 3 ‘between ndviuaugments le 23) +3 tgs econ 4 “other ADR atematve dispute esoluton procedures. nes 34-35) 2) ferent kinds of dispute can be heard ina lw court 18)elsputes are sted yan Independent person or bod, instead ana aw court 5 ‘nfor example patent cousins 59-60) +3) courts dating it ght lating tinvertions 8) cours dealing wth rights relating to trademarks {6 ‘mainly in counties with wellegarded court systems lines 0-6) 2) famous court systems +0) cout systems which are thought be good 7 "The most commonly cited eason for. ines 62-63) 2) eitlsed most fequenty +d) mentonea most often 8 tigting under foreign aw. fnes 64-65) 12) bringing or defending a lawsuit enforcing legal regulations 9 “stjected the idea including on appeal mechanism. nes 78-79) 2) an automatic appea sytem +5) asjtemalloning appeals 10 obtaining fra deision "ines 80-3) 2) am fill decison tat canbe appealed against +8) anoffdal decison wth no appeal allowed ‘Word partnerships Match the verbs (1-5) wth the nouns (-s) to form common wor partnerships often found g- In business ave Some verbs ean be matched ta more than one noun. io Baia Tas oo 3 tories offi? 4 0 adispute yt 4 toadd 2) alaw 5 ee Ay ©) anargument 42LUNIT3 ++ HANDLING INTERNATIONAL DISPUTES. Sentence completion Use the word partnerships from Exercise 8 to complete these sentences. 1 Itisoftenadvisableto Instead of taking another company to court. 2. The lawyer advised that obtaining a technical report was unnecessary, and would simply 9. The dge othe... put Forward by the defence counsel, saying there wasno clear evidence, 4 5 Incourt, counsel supporting his view thatthe transaction was not reudulent That new speeding.....will not be effective iis NOt. Word families Use the words below the text to Form one word that fits in each numbered gap. Alternative dispute resolution in the context of electronic commerce E-commerce makesit posible generally ....? by the laws (ADR) canbe very help © forconsunersto franfact| of their jurisdictions, and both parties in electronic th companies oF othee commercial sellers age also transactions, especially in individuals without regard to subject to legal... in the _css-brder complains. At the geographic location, but it 1s countries in which they are = same time, consumers and flso mses the question pf how" Tocated, cost and other factors those who... their imerests disputes will be -W.”, —maymake dificult for... mst. the ight use the especialy when the buyer and toobinin satisfactory solution courts of the consumers’ feller are physically distant, in cross-border disputes, _counos if necessary. » While the buying public are» Alternative dispute resolution 1 transaction 5. consumption 2 resolution 6 representative 3. protective 7 retention 4 oversee Prepasons apt oc reg tine eps eed ie 1 2. Companies cn vansat Wilf other companies (nes 2-3) 3 Indus are rote 24. the nso wn count na) 4 Sales of goods are made abject #2” many legal requirements ine) 5. ADRean be helpful. £02 all partes involved, (line 23) ©? 6 Hestillhas the right..2. take another person to court. ine 27) Oa 1 Take notes of the key findings rom the article, so you can give a short presentation about the Pac study 2. Do-some research o find out about diferent kinds of ADR, then write a report (about 300 words) summarising the topa | Different countries, different legal systems This unit looks at how businesses, and individuals, can think about which country's legal system might regulate their activities, or which country might be best for a court hear The legal power or authority ofa countrys known a its justin, at gl 1, wan copa aa tntoal err ener yim deco he fount opie on screen 2, Mp MME an ies on she ote pres PERE caere ces eooncnncae toate tas gen ent, 3 Why might developing countries and newly emerging economies want to ensure tha ther laws and regulations are ‘business-friendly toward foreign companies? [READING | LL} _ Understanding the main points Read te article onthe opposite page and answer these questions. 1 Whyae egal systems in diferent countries saa tobe in competition with eachother? 2 What exactly is meant by choice of ows? And how does that fe fam forum shopping? Understanding detats oe Read the article again and answer these questions. 1 The Royal Courts of stice aren London, Why dd the three people mentioned in paragraph A use English law cours? 2 Does the writer fel that competition between legal systems of diferent countries is anormal business concept? 3. Forwhat kind of business s English aw commonly used? 4 How do English courts difer from courts in America in the way they interpret contracts? 5 Why have aw Firms inthe City of London been able to market thelr services internationally? ‘ Wy does so mach asbestos tigation take plc in eerson County, Mssspp USA, an how does this benefit the local community? 7 Does the European Union regard frum shopping ina positive way?UNIT +> DIFFERENT COUNTRIES DIFFERENT LEGAL SYSTEMS E er greg Right and wrong choices in the market for justice hin aecccarersiee aenss [[systdms of different countries are in, ’ English law and modelled aspects Ses wach og Tati “Tale ic youn ens ca ‘of competition in the” supply of English principles. ee eee tee een oe +7 om nt we uy lp cs ail fen in egal services begins whe, before Gate has SECAREEA chic of avs tier ss Col eave Sieteeeee tne i ng iy opt ier a et pee ratte | Musisipp, Is te world conte of Scere Ga tecmert she shee hip, Notes at Jurisdiction in which any dispute is to ‘community bis been specially damaged) Semomived Tube ue cfthe ” by ecto ma, ose Saati id judg ae eter aly Gereenemaeresywedia ¢ epckeie Mamie Taya Ree rtwen ot) inane macen ain piOniiet ieenivinl f= Getcmac sacs te eee Ege ae ae tee om ei tom epee ol feo owe watever comet ramet limo ig tse ss toe pring Es TE MIREY.GA pcede tes eo san Socio cette tee eR ernie es we ar lak ps us st incnrea w ine ta or ote Sieh of conc whlseoets tet eon rasa sat Dee's Ce ae epee eae one ter et aae mdeees a, » cuter vatcion te ier Tae 1588 Roms Coenen, ech a Sopa ee ee eee Sain y ‘Soper: Ee, Fer ete “hi Eglancombamion oe fener he a,b ee paccenentcsDantiwen | iy tee te crete ego re hepsi. Tones Dnowten wo ten clas athe cenit Asics A aes tam, Zealander and a feloW-Avirican? for giving frighers afar chance in» from i hese ‘Why did Frau ick fanper wife of » court. These competitive aactions the loss of business Vesta German nda gg pest of the Engh Teal mst hve am iim who woul ie 0 our to determine tof! her» made Cy lew firme args exponent “HES every caput. In Me ew is ag exon ry isp putin Svorce settlement? Why did Roman legal serves. tice, a8 for every oer Plans French citaen come tthe nigh chose of laws aad 8 pomant o under. Royal Courts of ste to seck bel oly sable Stand both tbe ss, and the limits: ocr, ames rm Vy Firs Aen ‘of competitive markers fagazine” Each of them thought they competion courage would get a better deal io England ies (© make thelr ea thanatene ‘Sjstems busines frend. Ermer Tha global marketplace, the legal Sates in Easter Europe have 0s[UNIT +» DIFFERENT COUNTRIES, DIFFERENT LEGALSYSTEMS 18 Understanding expressions ‘Choose the best explanation for each phase from the article, ‘ato defend claims that (line 2) +a) argue your position ina legal dispute against you ») start a court case against someone +. has breached the copyright of (ine 3) 2) used copyrighted material with permission +b) used copyrighted material without permission "CORSA nets of ine 7) 4) bring those terms to an end +) decide exactly what the terms are 4 ‘aher divorce settlement? (ines 7-8) a) agreement to get divorced 5) arrangement setting out how money and property should be divided after divorce 5 Vetjustie is otk ee (ines 19-20) + a) an idea that shard to define ») all about being fair {6 “One element ofthat rarmeworks the usin in which any espe to be resolved +2) the country whose law will apply if there isa dispute “Rb) the way in which a dispute should be settled legally 7 ‘ssmuch more freedom to write whatever controct the partes want than.” ines 33-35) 2 fever ggg wean eerie conn. +b) fewer FeBtrictions on what can be included in a contract 18. ‘from vested legal interests which resent... (line 90) ‘¢2) people or organisations that enjoy a benef from the existing situation ') traditional lawyers who distike change ines 25-28) ED Legat terminology Match these legal words and phrases (s-8) with their meanings (2-H). 1 copyiaht GO leralstctue g 2 libel damages 'b) opposite of defendant (also known as claimant) L5 toenerino algal relsionshin @-brngngawsuts 24 teal tamenrk @ teal ownership ofihtsin tray ats and musa works LS toenforcethe terms ofa contract) to begina legal relationship 6 chylawtins 1 tomoke ure the onal temsare obeyed C7 tigation (®compensatio fran ante published statement ha hams Someone’eptaton Bes paint (iinengan, ange law ms based in tondonUNIT »» DIFFERENT COUNTRIES, DIFFERENT LEGAL SYSTEMS, ay" Use the word nd phrases rom Exercise Bin the correct fort complete thse Sentences. pen ebrieonmeesinemeeerr sh lore a county she European non, hs to consider whether ie age the requirements ofthe EU. pido! ‘Some rock stars have been awarded substantial sfter, newspapers have published untrue stoves bot the, al geen The mjtyfhightntmatea sess sn te Ka ana by bh, fee ther hgngaler fs loses outside London. po elfen cour tate haps a considerable sum of money ater being Sl detective ‘Arecognised way of protecting is by using the © symbol, followed by the year the wor produced and the name ofthe person producing the work ahh ‘You need to be fully informed about the financial circumstances of a company before you. eke tll od with them, ee” ‘The new supplying company repeatedly aed to meet ther delivery obligations, so we had to goto courto.f. Word families Complete the chart with words from te article. pew (reitre | ¢totransact en pe [eferce | erenen ee ae tolitgate aa OT 1 Theartil els us that when resolving disputes, diferent courts wil not necessarily view the law in the same way. But what about completely different legal systems? The common law system (used in the USA and England, fo example) Is based on decisions made by the courts, whereas cil law (used inatin America and continental Europe) is based on a wrtten cil code, Discuss some ofthe key aiferences between these two systems. Oe. The United states courts are famous for awarding mous sums of money in cases where someone thas been harmed by a manufacture’ fauity product, or when instructions for equipment donot include ‘every warning imaginable. Consider the ros and. gal system tat allows Such high levels of compensation tobe awarded. if possible, pipvide examples of cases where substantial damages have been given bythe court a vunt Bollywood needs lawyers! Bollywood is the Indian film industry's version of Hollywood, USA. This unit looks at how those involved in this often risky business are increasingly looking to lawyers to provide professional help. Dian 1 Tear as bout im nus Wha eer reas busines and commerce recovered by aralttad 2 Thinkotarecen hal successtlmove How an moneybe made om the fi, nation Sronoptras ieee eet Understanding the main points ‘Read the article on the opposite page and answer these questions. 41 Why do members ofthe film industry in Indias Bollywood increasingly need advice fom lawyers? 2 Inwhat ways does the Bollywood fim industry difer from Hollywood, as far as lawyers” services areconcemed? Understanding details Read the article again and answer these questions. 1 Why did peoplein the Indian fim industry not want to consult lawyers for business advice? 2 What does Ashni Parekh see asa key factor in running a successful law practice forthe Indian fm industry? What frst caused the change away fom a simple one-page contrac or handshake to seal a deat? What di the courts show was the problem with many of those early, simple contracts? What business developments have resulted inthe fm industry becoming afar more complicated environment? What are some clients being advised todo to create a tax advantage? What are the problems atypical Hollywood contract would presentin India? The atcle mentions various areas of work tha Indian entertainment lawyers can be ivolved in, What are they?aan z ollywood witnesses increased lawyer representation Dibeyendu Ganguly ‘Two years ago, when Ast Parekh et [Nish Dosa and Associates. seer fainment law praedcp gant exactly orshiag: Rearend Batyeod waned eal i,t seat sete ih ea, Toes. was obvEOU charg ein fi nas 80 bark Pastis au evo sine Somer Moke on er ces Ss wists caveat per erly an > Bela soy fs fe hone, atsnce su Be Bie sre cles Srey hy, inching Beepcrtouener cae ctsny a Bag cscens tr he tte Rick wat tine he's legal Beart Balywerd ra dint ia Ti prtcerandp sop tae a vit ie et my fore muses ond soar el he dtr or aia Becca cece PPR esi asibutin, and ais Fomery a lnyer witb DSK, Nuk is ‘Mors peti ihan the paper was suming mit om pds ead eUins highly 2pecalised work in Phe MRE ncody werecaly genres fiMolytondi catchy" manera uch fetes ay Inter o akine sn ‘gine more contac than befor,» Onc oftis ace cents Exel, fs roemcn ORGS» GelifFheareslelong way fronts” UK bused producer of eneraiment thecomingoftome-vewing echnl- ” Hollywood model, wim eveyone is _fonmase forthe aowlg market rth en elo tein © Smemedystnye spe smnd HM AE amen decimige wire righ tovisco_ Deurot DSK Legal tavyer ae Festa Navy on wel were eaGEVIh ow producer onthe" DSKalsoadvingitsfkmindusty > exublsed inenationl pecdens Gisitoe Tecounsahstdepended% chenton ix Forexample within they move ito mw area Hollywod ative apie pt, Hm ringincegreercstm Sacto i compe the coma Pac ay all_ she some pa ar ning mach of tye in ato his" to distributors and record tthe Optom of NEM tho rehts gos ito SEMA what stays and Cormpanic, with mo provision foraow to thelr lng 4. Mauri based w what gos "YoU Gat at caand ‘Scola company. ty fies on paste Hollywood clases it Indian eae. with @ ringtones ik purposes : contracts {oo many words dling the revenue from music G Whenever you bearofan gfe Yourgeed sales, foreign drt panty taking ® proicer to court of «/Ablda a ferecning om aeroplanes and cruise « Suing the release of lm, you can the client “Today, things greeting more com- the sme level Hollywon fm for Gontracts,” says Naik “Hollywood finzstrcomngriow tablet" betAtect Nas Somehow ivabed wouldnt oben +2 és A Hen bap tape? wie - ae Hor 0 wn a ywUNITS ++ BOLLYWOOD NEEDS LAWYERS! Word search Fd id orphrses tthe arte ich ee ening: 1 alaw ofce that specialsesin adsing peaple working in ls, musicals, V shows, ec (paragraph A) 2. large amounts of money payable fo legal services (paragraph A) 3. anormal one-page agreement (paragraph ©) otal , stemolert ‘starting legal proceedings agains (paragraph D) 5 coutacton garagaphD) Likipolien 6 to decide (paragraph ) 7 onedby paragapho) vested with {without proving for (paragraph D) 9 considering the posibity of transfering the legal ownership of (paragraph F) 10 someone who fees they have a reason to complain paragraph 6) 11 spells egal terminology (paragraph ¥) 12 understandable (paragraph H) Understanding expressions choos the best exantn foreach word or prasefam thea 1 ‘await ety ling ies 3-9) 9 ponte 9) fang 2 ‘athe sight? 3) 3) manfocturng nd prtutonsytens 2) he ep ene SET Rae someting a conmerci ss) 3 earings much rom rout ndorsent. ie 7-8) 1) allowing ournane to be sed sel products 3) Senge wah gays pening new sore apening st ple futons. 4 ‘sorting the ieee ofa fm .” nes 64-65) 8) cane foe =) bbe dela 5 ‘..well-established intemational precedents. ines 74-75) + 2) examples, eg. of contracts, that have already been established ») leading legal experts 6 "You can't just cut and paste... (ines 80-81) a) copy blocks of text 1b) change orginal wording / Ler 7 ‘Hollywood cidises tne 4) rules and regulations 4b) paragraphs ina contractUNITS *» BoLLYWoOD NEEDS LAWYERS! [Bl Sentence completion Use the words and phrases rom Exercise inthe correct form to complete these sentences. 1 ‘He sad is work was about at nt money. butnowthat actors done a eae. gname ison some kind of washing powder! (ecarrichieay Look at the contact and check the “Sr fasurance sks. We must know exactly what the terms are, 3 her nwcompter constancy bsesisely./ 2 kena succes mine worse. 4 This wong looks completely wrong fora contract. thinkthey have jus... ed dah, temas bose, Do we aeady have fran agreement tke this so, we needn't wit a completely new document os ‘The sellers say they can't find our order, but thnk they're ust... They want more time to find a solution, Legal terminology Use words from the atl to complete thes sentences. adbige Actent const lawyer, andthe amperes the lent Alter abvsing cet, alanyer charges 2/220 Inthe world of entertain we tak about nat ony sinnga contac, but ai signing a. 227 Aconrct contains many hich are iro paragraphs ‘When wring anew contract, wé Took to Seif there are already goad examples of clauses from existing contract that we can us hae examples arcaled oeecentocer : eer Incourt,aclent is" by lanyer. The lawyer acts onthe client's behalf 8 The eld of aw involving court cases is known as.Afecaeroor7 Oc {fim actors a person who works in the world of rt, culture and creativity, but ‘hace ee benefit from a good head for business. What other occupations might also need legal advice and what can happen iit snot avallable? ‘You ate business adviser toa young, enthusiastic intelligent pop singer who has ust won the frst , ness and round ofa TV talent competition You have five minutes to present to her the key business areas she ‘shouldbe thinking about i she goes onto bea great success,Practising diversity This unit looks at ‘practising diversity’, which means, in effect, an employer giving equal opportunities to employees from different kinds of minority group. Discuss these questions. 11 What examples of minority groups do you know? 2. What are the benefits to society of making sure that minority groups arena dsrimin when companies hte new staff ‘0 you think the laws the best way of ensuing there ino discrimination n society? What other ways ate there, and how elective are they? against Understanding the main plas 4 ud hac nth poste para one 11 Why exactly ld Lorene Schaefer feel she had been discriminated agains? Give detals. 2 How would you describe Ms Schaefer's carer profile? Are there other ike her inthe American business world? 2 Which ofthe following ‘challenges’ faced by businesswomen are mentioned inthe article? workingin a male-dominated world ‘not being employed by major corporations ‘ot being pad the same as male counterparts being offered only junior positions ‘experiencing difficulty in reaching the most senior postions. Understanding details Read the article again and say whether these statements are tue (1) or false (f. Correct the false ones. ‘The lawyer claiming compensation has a high postion in her company. ‘The claim also asks for compensation for other lawyers atthe company ‘She was told she did not have the right academic qualifications forth jb in question. ‘Women form a large part of senior management at GE. nti ling this sult, Ms Schaefer believed she had been on her way toa top position. GE feelsit must accept what she says. GGEhas received an award for promating female employees. Class actions (cases brought on behalf ofa group of people) are well suited to this sort of discrimination claim.male Dwyer at General leetrichleda sex yt discrimination lawsuit against the” py on Thursday seeking $300m datoeneys at the company TLorene Scheer hed he laws, ich srk 10 cried ass Sifter esring in Api that she al be demo am het position as eral Counsel of GE's wansport malvision She sid she wastold she not "bi nou fore jo, “The lawsuit could prove embarras GE, which hak beet doing Eso lose sold image of male eed industrial conglomerate, lawyers, Sanjagg Witels and TAS mate ive gral counsels were pid less kept at ower ank than ve mle expats. They also contend that ranks, making up 13 percent of jor corporate officers and 20 per of smn excitivesthe next el down, "The General Elect pany dos not meet and deliver the ts in diversity for women, MS “She had worked at the company fr peas and believed that was ne of ving trough he glass ‘he a informed she + PRACTISING DIVERSITY as Case sping oe aly ‘acbigtine G Ms Schaefer is one of @ growing general counsel numberof women wo have done wel CGE sid it'stongly" denied the alle wate Ameriey and then filed eis woo ene agnt compli er ecbanring {i cias Comte AUASeROOSI cy machi seg seer with GE clearly «Toe Sells a employment stomey portunities that Aho represents pati. ides to women, as she was given H Such high-level cases can be harder to bring as class actions because ltrger rles.'a GE spokesman said. promotion decisions are of a more ‘GE works very har to promote and « individual nature lawyer sa. ‘ensure diversity inour company. There re more women in bigger jobs at QE than ever Before" In 2003, GE as tenn avard by Casyst an onan Hon dedicated fo promoting women im business, fr selfs in increasing themumber of fmalecorpoataficers Pina 8 Finding figures What do these figures and dates refer toin the article? $500m ) 4500 a ) 20% 3 2(eset anna: | aac] te sue lean tenia +? 7 UNITS: ++ PRACTISING DIVERSITY eee Legal terminology Faeroe bln ests toner 1 started a court ease (paragraph a) 1/2 ‘trying to obtain compensation (fa certain amount of money) (paragraph A) saekino Mama Oe ewan oun haf poun cf eneGagponhe) at) ably ‘aseioriseompany legal adviser (mE (paragraph B) Counsel claims something ina legal process, before its proved (paragraph D) conplecnt argue ofan ersten goles (paragraph 9) ope oferigg equal opportunities to moti groups Gn employment (paragraph) ‘he ARIS aretha sons an es pone ly wane) om eng promote (parerapn) epeeaee 9. appearin court to sat is case following clam against t paragraph n Moree Vs a Los 110 aUS lawyer working in the area of*iring and fring’ (paragraph @)» abe, state mea repre. 4 ‘athe guy verde signaled « greater level of sophistication "(ines 36-37) 4) showed things had developed and improved ») indicated tings must develop and improve the Shanghai court handed down verdicts on x3 other cass... (lines 64-65) 4) listened to ) gavedecisions onLUNIT9 + PROTECTING INTELLECTUAL PROPERTY Legal terminology 1 Find words or pases inthe article which fit these meanings. making legal copes (ite) Financial compensation awarded by a court (paragraph A) punished by having te pay a money penalty (paragraph B) tights which relate to non-physical, rItangible, assets (paragraph B) three examples of intangible assets (paragraph) court decision that someone Is not innocent (paragraph D) taking legal action in cl (a5 opposed to criminal) court (paragraph E) ‘making sure that cout orders are caried out (paragraph F) 2 Decide which word does not iin each group. 1 damages / compensation / complaint 2 piracy thet /counterflting 3. court/fine / sentence 4 product / rademark copyright 5 6 tulig / statement / decision sue / prosecute / enforce Sentence completion Use the words or phrases from Exercige A to complete these sentences. Note that you may need to change the word form (e.g verb to noun adjective). 41 The song had the same tune as ait from the 1980s; the original publishers claimed substantial Incourt 2 Foran offence ike that, you can receive avery heavy | 3 Itsno.use ust asking them to stop using that packaging well have to threaten to... them before they take any notice. For patent egstratons, we need to speak to lawyers specialising in These $20 notes ae... The tore refused to accept them, “he court rain was nthe manufacturers favour. Now its a question of making sure thatthe ruling i The handed down by the court caused bad publicity and affected the sales ofthe company almost immediately. 8 Avo particular name or symbol that has been registered bya company andso cannot be used by anyone else.LUNIT9 +» PROTECTING INTELLECTUAL PROPERTY text completion ‘Choose the best word toil the gap from the choices A-D below the extrac. se in cases to protect companies’ copyright Jonathan Moules ‘Tom Farrand, Director of Trade- The biggest increase was in claims ‘marks atIP3, a intelcctil property over passing she..." use ofa tlecual...awyers ae wirn- advisory service, si he hal een a> style, look o rand associated with ‘ofa jump incourtcases involving ship increas in ngures during the another company, followed by “isthe 1s past few months from companies infringement of trademark cases. Tooking to.'deiens, During a Patents and registered design claims Pisaleady downturn, companies stat looking _rese 95 per cen. while copyright and cathe ise, inreasing 83 percent last overtheirsboulder and enfore thelr designighteaes were up 43 per ent. year acending wo the latest judicial... ansfhers rahe than tke intiicsas business owner become > ing a forwant-looking atitde and FT Inore aware ofthe need fo protect asking what new products they can ‘hei des. lunches. patent activity property ‘ownership logos copywrite packaging copyright regulations aims verdicts damages prevent produce predict protect positions cases rights losses unauthorised competitive distinctive licensed Vocabulary development ‘Choose the correct intellectual property term for each definition. 11 Manufacturing product sot looks very similar to an existing product, so that customers are cheated, Isknownas 8) passing off ») putting off ‘Wegally copying a trademark, patent or copyrighted material is called ) falsification ) Iningement OC ‘You know someone whois just starting his own small business making a range of botied sauces for food, He knows about cooking, but he has not thought much yt about te implications of a good product name, a siogan the design ofthe label, ec. Write a short report (250-300 words) explaining that he should be aware of froma egal point of view and highlighting the risks of another company copying his products Find out about a court casein your country involving counterfeit goods or another intellectual property rights issue, and explain ito a colleague in your vm words. Include the court's decision in your explanation.New ways of dealing with fraud This unit looks at a report on how law firms are tackling the problem of fraud. aE Discuss these questions. 11 Whyis fraud becoming growing problem internationally? What can lawyers doto deal with thisincrease? Prcefxing is one kind of fraud Can you think of others that can affect businesses? ‘Te “eaud squac'~the main police fraud office in various counties ~is wellknown from films and “TWeime series. How ean antifraud agencies in diffrent countries work together to fight crime? Understanding the main points Read the article onthe opposite page and answer these questions. 11 Inthe fist example, involving the frm Peters & Peters, n what ways did the prosecutors and the defendants benefit from the outcome ofthe case? 22 How did the two other law fms earn themselves a mention inthe fraud section’ ofthe report? Understanding details Read the article again and choose the best answer (A,B, Cor 0) to these questions. 1 What does paragraph Asay about marine hoses"? A. They were first used in December last year. 8 Alotof criminals knew about them. C_ They are now known to some lawyers involved in financial cases. They are pipes used inthe navy. 2 Inparagraph C, what were the tree men found guity of 'A. Criminal offences which they had committed inthe UK Stealing the marine hoses from ships Being part ofa conspiracy to fx the prices ofthe hoses 1. Being part ofa conspiracy to use the hoses to steal crude off 3 Why was the US Department of justice pleased with the case? [A Because the Department now fels other countries willbe encouraged to make price-fixing laws more effective. 1B Because the case was conducted ina vigorous, lively manner. Because the Department is very ambitious. Because the case fited wel wit the kind of aw the Department i interested in.