INTERNATIONAL LAW
I. SOURCES OF INTERNATIONAL BZ AND ECO.¾LEGAL INSTITTIONS
A. Issues
1. Players In The Market
a. Countries- countries are classified this way
1. Developing Countries- most other countries, but there is a huge diversity
· import substitute
· they need to be connected to bigger countries so that they can take full advantage of their trade
2. Newly industrialized- countries that left communism, and are just taking a market eco. for the first time
3. Least Develop – there GI is $300 or less
4. Developed Countries- about 30-40,
b. International Communities
1) such as NAFTA, which is planing to add all of South America
2) the European community
B. International Common Law¾ The Law of the Merchant
1. Customary Law- contract practices, understandings, regulations and decision constitute a body of law wish is the foundation of international commercial legislation
2. there are other sources that make out the law, such as controls imposed by the individual govts and other public controls establish by international agreements
3. Law Merchant/lex mercatoria- international body of law founded on the commercial understandings and contractual practices of an int. community composed of mercantile, shipping, insurance and banking enterprises of all countries. It should be seen as an autonomous body of law binding upon national courts. It characteristics when it was first adopted were
a. it was transactional
b. it was administer by merchants rather than judges
c. it was based on mercantile custom
d. procedurally it was speedy and informal
e. it stressed equity
4. most of int. contracts are resolve through arbitration, so most K contain an arbitration clause
5. There have been many int. national agreements, these agreements are not binding unless the parties or lawmakers decide to embrace them. Some of these agreements are:
a. Convention on k for the int. sale of goods- applies when a K is based on different contracting states, but the parties can opt part of the agreements out if they don’t like it
b. Haugue Rules
c. Hamburg Rules
Vimar
· Seller puts the oranges in the boat, oranges are bad so since the buyer at this time own the oranges he recovers from the insurance co. and then since that is not enough he sued the carrier and the boat, he attaches the boat in Massachusetts to get jurisdiction but the bill of la
r the simple reason that it may be more inconvenient to arbitrate in a foreign country. Court can not do a cost analysis every time someone files a case.
· The choice of law would also prevail, as long it does not deprive a party to pursue appropriate remedies, or limit the rights of the parties. This goes for all clauses. None can deprive remedies or rgts of people
II. THE INTERNATIONAL SALES CONTRACT
A. Sale of Goodsà Uniform Codes
Sales K K for Carriage Contract for Insurance K x Pay (letter of credit)
1. Seller- buyer 1. Buyer-carrier 1. Buyer- insurance 1. Seller-bank
2. Under an CIF- seller 2. CIF- seller chooses the 2. Buyer- can prevent
Chooses the carrier insurance for the buyer the bank from paying
· Risk- for the buyer is non-performance for the seller is non-payment
· There are several codes that intent to regulate the sales of goods so you must specify in the K what code you want the transaction to be under
