International

Legal
Agreements
 Describe the legal
systems upon which
international law is base

Explain Product
Learning Objectives:

Liability

Understand laws and

international trade
The Legal System
which the
international law
is based
Legal system
§ It is a country's law regulates business practices,
defines business policies, rights and obligations
involved in business transactions. The government
of a country defines the legal framework within
which firms do businesses. The purposes
and functions of business law include maintaining
order, protecting rights and liberties, establishing
standards, and resolving disputes when it comes
to businesses and their interactions with individuals,
government agencies, and other businesses.
§
International law
§ International law is the set of rules, agreements
and treaties that are binding between countries.
When sovereign states enter into agreements that are
binding and enforceable, it’s called international
law. Countries come together to make binding rules
that they believe benefit their citizens. International
laws promote peace, justice, common interests and
trade. People involved in international business are
guided by the principles of international law as well
as by the trade agreement.
The main legal system around the world are:
Civil law
Common law
• It is also called code
law, it is a complete Statutory law
set of rules enacted •It is also referred as
as a single written case law. It is a legal
•This law is enacted
system or code. system that relies on
When a government the accumulation of by the body of
enacts a civil code, it decision made in lawmakers. It is
attempts to write prior cases. English enacted to add to or
down all of the laws common laws grew change existing
and the rights that
out of the laws and to define
govern every aspect laws for new
of the society. deterioration of the
feudal system. situations that
arise.
Product Liability
Product Liability

§ Is a specific responsibility that both

manufacturers and sellers have for the
safety of their products.
§
§ If a manufacturer does not use “due
care” in designing and making a
product, it may be guilty of either
intentional or negligent harmful action.
Defects that create liability:

1. Design defects
2. Manufacturing defects
3. defects in marketing
Negligence

Which is the failure of a responsible party to follow standards of due

care, can also be difficult to prove.

Strict Liability
Imposes responsibility on a
manufacturer or seller for intentionally
or unintentionally causing injury to
another.
Six Conditions to be met in order for the
manufacturer to be held liable for damages under
strict liability laws:

1.The product was sold in a defective condition.

2.The seller is in the business of routinely selling the product.
3.The product reached the user without having been substantially changed.
4.The product was unreasonably dangerous to the user.
5.The user of the product or a bystander suffered harm or injury by using the
product.
6.The defect was the primary cause of the injury.
Laws and
International
Trade Agreements
that protect
Property Rights
 International trade law is the set of laws and agreements
that govern commerce between countries. International
trade laws create the rules that countries and businesses
must follow in order to do business across borders.
Lawyers who work in the field help create international
agreements. Generally, international trade law includes the
rules and customs governing trade between countries.
International trade lawyers may focus on applying
domestic laws to international trade, and applying treaty-
based international law governing trade. And it helps to
protect our property rights against other countries who
established their entities in our country
This report provides background on intellectual property rights
(IPR) and discusses the role of U.S. international trade policy in
enhancing IPR protection and enforcement abroad. IPR are legal
rights granted by governments to encourage innovation and
creative output by ensuring that creators reap the benefits of their
inventions or works. They may take forms such as patents, trade
secrets, copyrights, trademarks, or geographical indications (GIs).
Congress has constitutional responsibility for legislating and
overseeing IPR and international trade policy. Responsibility for
developing IPR policy, engaging in IPR-related international
negotiations, and enforcing IPR laws cuts across multiple U.S.
government agencies.
The protection and enforcement of IPR is an
important and long-standing component of U.S.
international trade policy and U.S. trade negotiating
objectives. U.S. trade policy also seeks to address
new and evolving issues in the IPR landscape
related to the growing role of emerging markets in
the global marketplace and the development of new
technologies, including related to digital trade.
 Agreement
and Contract
What is contract?

A contract is a legally enforceable agreement between two or more persons either to do

or not to do a certain thing or things. A contract encourages competent parties to abide
by an agreed-upon set of items. Contracts are the basis for almost all business
arrangements.
Contracts can be either implied or express. An implied contract is one that is not
explicitly agreed to by the parties but is inferred either from the parties’ conduct or
from the law. An express contract is one whose terms are openly declared, either orally
or in writing. Businesses nearly always enter into express contracts because it is wise
for parties to agree to and set forth very clearly what is expected of everyone,
However, both implied and express contracts are binding on both parties, and neither
party can withdraw without the agreement of the other party.
COMPONENTS OF A
CONTRACT

For a contract to be considered valid, it must contain the

following four essential components.
§ Capacity all parties must be competent, of legal age, and mentally
capable.
§ Mutual agreement one party offers valid terms and the other party
accepts.
§ Consideration something of value must be given by both parties.
§ Legal purpose the terms of the contract must be in agreement with
the law.
For a contract to be enforceable, the contract must be valid—that is,
it must meet all four of the conditions. Either party can enforce a
valid contract. A contract that fails to meet one of those four
requirements is unenforceable by either party. Businesspeople in the
international arena frequently enter into contracts with
representatives of companies from other countries and with the
governments of other countries. Such agreements are most often
made according to the rules of international law.
TREATIES AND TRADE
AGREEMENTS

Treaties and trade agreements between countries are

examples of contracts that have a tremendous effect on
global business activities. These agreements impose a degree
of stability and uniformity for trade relations where members
have different cultures and customs. Since contracts are the
basis of business relationships, many trade agreements
provide guidelines for the enforcement of contracts.
Some of the most far-reaching international
trade agreements in force today include the
following.

• The World Trade Organization with more than 140 member countries

• The European Union which allows the free flow of goods, services,
labor, and capital between the member countries of the EU

• The North American Free Trade Agreement, designed to ensure open

markets and fair competition between companies in Canada, Mexico,
and the United States
Litigation Process
Introduction

Throughout the world, mostly legal disputes are resolved without the parties
ever going to the court between individuals, businesses, and nations. Due to
the time and expenses involved in law suits, the concern about bad publicity
and outcome and the desire to maintain good relationship with the other party
are considered.
 
There are several ways to resolve international legal disputes. The two major
means of alternate dispute settlement used by business in the international
arena without court action are mediation and arbitration.
What is mediation?

Mediation is a dispute resolution method that makes use of a neutral

third party or a mediator.

A mediator attempts to reconcile the viewpoints of the disputing

parties.
A mediator is involved with the substance of the dispute and makes
suggestions and proposals. Therefore the mediator is often an attorney
or an expert in the disputed matter.
What is Arbitration?

Arbitration is a method of conflict resolution that uses a neutral

third party to make a binding decision. Unlike the mediator, an
arbitrator’s decision is legal and binding on both parties.

An arbitrator acts as a private judge at a location of the

disputing parties’ choice and establishes procedures and rules of
evidence.
What is the difference and similarities
of Mediation and Arbitration?

Similarities of Mediation and Arbitration are that:

Ø
Forms of alternative dispute resolution

Ø
They are or both can settle a dispute without the action of court or without
having to go to the court.

Ø
It both need neutral third party
Differences of Mediation and Arbitration are that:
ØIn Mediation
- The mediator attempts to reconcile both parties by making suggestion or proposal. But
mediators cannot make a decision binding, ONLY both parties could bind it if they are willing to
compromise.
ØIn Arbitration
- The arbitrator decision is legal and binding to both parties.
The two parties could resort to Litigation when they are unable to or unwilling to resolve their
differences through mediation or arbitration or through their compromises or own agreements.
What is Litigation?

Litigation is a lawsuit brought about to enforce rights of a

person or an organization or to seek remedy to the violation
of their rights.

Litigation involves many complex procedural rules. These

rules vary from country to country and even among courts
within a given a country.
Litigation Process

ü
The Incident
ü
Selecting an Attorney
ü
Pre-Filing Fact Gathering
ü
Filing the Complaint
ü
Formal Discovery
ü
Settlement Discussions or Mediation
ü
Trial
ü
Appeals
The International Court of
Justice

-the International Court of Justice was

establish in 1964 by the Charter of the United
Nations.
-
- it sits in the Hague in the Netherlands
What is an International
Court of Justice?

ØIs a court that settles disputes between nations when

both nations request that it do so and also advises the
United Nations on matters on international law.

ØThe decision of the court is binding for all parties.

What is the importance of the
International Court Justice to the world of
International Business?

ØIt provides guidelines for

acceptable ways of doing business
around the world.
SUMMARY:

Ø
The main legal systems of the world are civil law, common law, and statutory law.
Ø
Manufacturers and sellers are responsible for the safety of their products. Negligence and intent to cause harm are
difficult to prove, such that the principle of strict liability apply in many countries.
Ø
Property right are protected by through government actions such as trademarks, copyrights, and patents.
Ø
Contracts are the basis for all business arrangements.
Ø
A valid contract must have four (4) components capacity, mutual agreement, consideration, and legal purpose.
Ø
International disputes may be resolved without the court intervention through Mediation or Arbitration.
Ø
Litigation is a court action used to resolve business global disputes.
Ø
The International Court of Justice settles legal disputes between nations when both nations request that it to do so.
Ø
The International Court of Justice also advises the United Nations on matters on International law.