• Even though a country’s laws may be based on the doctrine of one of the four legal systems its individual interpretation may vary significantly
7-5
Lawyers per 100,000 People
• The unique problems of protecting intellectual property rights internationally
7-2
What Should You Learn?
• How to protect against piracy and counterfeiting
– Places emphasis on the ethical, moral, social, and religious dimensions to enhance equality and fairness for the good of society
7-9
Marxist-Socialist Tenets
• The foundation of a legal system
– Profoundly affects how the law is written, interpreted, and adjudicated
7-4
Bases for Legal Systems
• Four heritages form the basis for the majority of the legal systems of the world
• The Court of Justice of the European Union settles disputes that arise under the EU treaties
– Legal disputes can arise in three situations
►Between
governments ►Between a company and a government ►Between two companies
• Most clear-cut decisions can be made:
– When contracts or legal documents supporting a business transaction include a jurisdictional clause
7-12
International Dispute Resolution – Conciliation(mediation)
• Pattern for development varies among countries
– Each has a different background – Development of market-driven economies at different stages
• Premise is that law is strictly subordinate to prevailing economic conditions
International Marketing
14th Edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham
The International Legal Environment: Playing by the Rules
• Conciliation is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences
– Sessions are private – All conferences between parties and the mediator are confidential
in Selected Countries
7-6
Common Law
• Common law – Seeks interpretation through the past decisions of higher courts which interpret the same statues – Applies established and customary law principles to a similar set of facts – Are recognized as not being all-inclusive – Ownership is established by use
7-10
Jurisdiction in International Legal Disputes
• No judicial body exists to deal with legal commercial problems arising between citizens of different countries • World Trade Organization deals with trade disputes through its dispute settlement procedures.
• The four heritages of today’s legal systems
• The important factors in jurisdiction of legal disputes
• Issues associated with jurisdiction of legal disputes and the various methods of dispute resolution
7-11
Jurisdiction in International Legal Disputes
• Jurisdiction is generally determined on the basis of:
– Jurisdictional clauses included in contracts – Where a contract was entered into – Where the provisions of the contract were performed
7-7
Code Law
Legal system is generally divided into three separate codes
► Commercial
► Civil ► Criminal
–Ownership is determined by registration –Considered complete as a result of catchall provisions found in most code-law systems –The law governing contracts is made all inclusive with the statement, ‘a person performing the act shall do so in conformity with good faith as determined by customs and god morals’
Байду номын сангаас
• Although conciliation may be the friendly route to resolving disputes
• Socialist countries are now more directly involved in trade with non-Marxist countries
– Necessitated the development a commercial legal system that allowed engagement in active international commerce
7-8
Islamic Law
• The basis for Islamic law is interpretation of the Koran
• Islamic law defines a complete system that prescribes specific patterns of social and economic behavior for all individuals
7-3
Global Perspective The Pajama Caper
• No single, uniform international commercial law governs foreign business transactions
– The international marketer must pay particular attention to the laws of each country
– Property rights – Economic decision making – Types of economic freedom
• Among the unique aspects of Islamic law is the prohibition against the payment of interest • The Islamic system
Chapter 7
McGraw-Hill/Irwin International Marketing 14/e
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