Legal and ethical aspects of international business / Eric L. Richards, JD, Kelley School of Business, Indiana University; Scott Shackelford, JD, PhD, Kelley School of Business, Indiana University.
2014
K3820 .R53 2014 (Map It)
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Details
Author
Title
Legal and ethical aspects of international business / Eric L. Richards, JD, Kelley School of Business, Indiana University; Scott Shackelford, JD, PhD, Kelley School of Business, Indiana University.
Published
New York : Wolters Kluwer Law & Business, [2014]
Copyright
©2014
Call Number
K3820 .R53 2014
ISBN
9781454834342 (pbk.)
145483434X (pbk.)
145483434X (pbk.)
Description
xxxv, 778 pages : illustrations ; 26 cm.
System Control No.
(OCoLC)867001294
Bibliography, etc. Note
Includes an index.
Series
Record Appears in
Added Author
Table of Contents
Preface
xxxiii
Acknowledgments
xxxv
pt. One
Legal and Ethical Reasoning
1
ch. 1
Law, Legal Reasoning, And International Business
3
Chapter Overview
3
Chapter Objectives
3
International Business and Its Risks
4
Global Trade Theory
4
Strategies for Penetrating the Global Market
5
Governmental Barriers to Global Trade
6
In Focus: Chinese Tires and the $85,000 Jeep Cherokee
6
Financial Risks
7
Dispute Resolution in the Global Arena
8
U.S. Regulation of Global Trade
8
The Treaty-Making Power
9
Congressional Participation-Agreements
9
Inherent Executive Authority
11
Legal Effects of Treaties and Executive Agreements
12
State Regulations
14
U.S. Administrative Law
15
Global Perspectives on Regulatory Agencies
16
Regulatory Agencies in the European Union
16
Regulatory Agencies in Brazil
17
Regulatory Agencies in Russia
18
Regulatory Agencies in India
19
Regulatory Agencies in China
20
Law in the Global Environment
22
Legal Rules
22
Judicial Decisions
24
In Focus: Stare Decisis After Citizens United
25
Legal Interpretation
25
In Focus: The Vienna Convention on the Law of Treaties
27
Jurisprudence
27
In Focus: Defining "News"
29
The World's Major Legal Systems
30
Civil Law
31
Common Law
31
Islamic Law
31
Socialist Law
32
Sub-Saharan Africa
32
The Far East
32
Questions And Problem Cases
33
ch. 2
Ethics And Social Responsibility
37
Chapter Overview
37
Chapter Objectives
37
Predominant Ethical Theories
38
In Focus: If It's, Legal, Is It Ethical?
38
Rights Theory
39
Justice Theory
40
Utilitarianism
41
In Focus: Critiquing Cost-Benefit Analysis
42
Confucianism
43
Culture and Values
44
Culture's Roots
44
Cultural Dimensions of the United States
45
Cultural Dimensions of the European Union
46
Cultural Dimensions of Brazil
46
Cultural Dimensions of Russia
47
Cultural Dimensions of India
47
Cultural Dimensions of China
48
Global Convergence in Cultural Values
49
Profit Maximization versus Corporate Social Responsibility
49
In Focus: Putting CSR In Perspective
50
Profit Maximization
50
Law and Corporate Control
52
Defining Social Responsibility
55
Reconciling the Conflict
59
In Focus: Changing the Business
60
Bribery
60
The Foreign Corrupt Practices Act
60
The Anti-Bribery Provision
60
Sarbanes-Oxley Act
63
Proposals to Combat Bribery
63
Ethical Decision-Making Model
65
Balancing Good Against Harm
65
Considering the Best Interests of Others
65
Company Values and Personal Ethics
65
Feasibility
66
Making the Choice
67
Questions And Problem Cases
67
ch. 3
The Legal Profession
71
Chapter Overview
71
Chapter Objectives
71
The Adversary System
72
Role of the Judge
73
In Focus: Crisis on the Bench
74
Role of the Attorneys
75
Role of the Client
76
Professional Responsibilities
77
Lawyers as Officers of the Court
77
Attorney-Client Privilege
78
Work Product Privilege
79
In Focus: Managing Privileges
81
Loyalty
84
Competence and Care
86
Hiring a Lawyer
87
Finding a Lawyer
87
The First Appointment
88
Attorney's Fees
88
Indemnification of Legal Fees
89
Billing Methods
92
Discharging a Lawyer
93
Questions And Problem Cases
95
pt. Two
International Law and Legal Institutions
99
ch. 4
The International Legal System
101
Chapter Overview
101
Chapter Objectives
101
Sources of International Law
102
Treaty Law
102
Customary Law
104
In Focus: Sustainable Development in the Global Legal System
106
General Principles of Law
107
Judicial Decisions and Teachings
108
Alternative Viewpoints
108
Jus Cogens
110
In Focus: Energy Exploration and Expropriation
111
In Focus: Takings Around the World
113
The United Nations
116
Membership of the United Nations
117
The General Assembly
117
The Security Council
118
The Secretariat
119
The Economic and Social Council
120
The Trusteeship Council
120
The International Court of Justice
120
Composition: of the Court
120
Standing
121
Advisory Opinions
121
Jurisdiction
122
Failure of a Party to Appear
124
Enforcement
126
In Focus: Conflict of Laws
126
Other International Organizations
126
International Monetary Fund
127
World Bank
128
International Center for the Settlement of Investment Disputes
128
Organization for Economic Cooperation and Development
129
Questions And Problem Cases
130
ch. 5
The World Trade Organization
133
Chapter Overview
133
Chapter Objectives
133
Background
134
Gatt
134
Gatt's Weaknesses
136
The Uruguay Round
137
Creating the World Trade Organization
137
Preamble to the Agreement
138
The Wto's Major Principles
138
Tariff-Based Restrictions
139
Most-Favored-Nation Treatment
141
National Treatment
142
Reciprocity
143
Sustainable Development
143
The Generalized System of Preferences
148
The Enabling Clause
148
The U.S. GSP Program
150
The WTO Agreements
151
Agriculture
151
Sanitary and Phytosanitary Measures Agreement
153
Textiles
153
General Agreement on-Trade in Services
153
Agreement on Trade-Related Aspects of intellectual Property Rights
155
Government Procurement
157
Trade Policy Reviews
157
Regionalism and the Future of the WTO
157
Global Electronic Commerce
158
Dispute Resolution Under the WTO
158
The Dispute Settlement Body
159
Dumping and Dispute Resolution
161
Dispute Resolution and National Sovereignty
167
Questions And Problem Cases
168
ch. 6
Regional Trading Areas: The European Union And Nafta
171
Chapter Overview
171
Chapter Objectives
171
The Basics of Regional Trading Areas
172
The New Europe
173
Enlargement Issues
174
E.U. Structure
178
Legal Measures in the European Union
178
Regulations
179
Directives
179
Decisions
180
Recommendations and Opinions
180
Elimination of Internal Barriers
180
Direct Applicability
181
Direct Effects
181
Supremacy
183
Subsidiarity
184
Proportionality
185
Barriers to the Free Movement of Goods
185
Preemption
186
National Laws That Affect the Free Movement of Goods
187
Free Movement of People
188
Harmonization of Standards
188
Motivations for Harmonization
189
The European Standardization Process
190
Foreign Influence on the Harmonization Process
190
The Future of Europe
191
Security and Defense Policy
191
An E.U. Constitution
191
The North American Free Trade Agreement
192
Creation of NAFTA
193
Free Trade Agreement versus Common Market
193
Legality
194
Administration of Nafta
194
Trade Commission
194
Secretariat
195
In Focus: Nafta Environmental Law
195
Administration of Laws
195
Rules of Origin
198
Nafta Trade in Goods
199
Elimination of Tariffs
200
Elimination of Import Restrictions
200
Country of Origin Marking Requirements
200
Nafta Trade in Services
200
National Treatment
201
Most-Favored-Nation Treatment
201
Licensing Requirements
201
Financial Services
201
Transportation
202
In Focus: The Semi Truck Dispute
202
Telecommunications
203
Nafta and Investment
203
Chapter 11
203
Affirmative Obligations
203
Enforcing Foreign Investment Rights
204
Dispute Resolution
205
Chapter 19 --- Antidumping and Countervailing Duty Disputes
205
Chapter 20 --- General Dispute Settlement Procedures
209
Safeguard Mechanism
210
Private Disputes
211
Questions And Problem Cases
211
pt. Three
Private Dispute Resolution
215
ch. 7
The Courts And Litigation
217
Chapter Overview
217
Chapter Objectives
217
The U.S. Judicial System
218
In Focus: Why Does the United States Have So Many Court Systems?
218
Federal Courts
219
In Focus: Must There Be Nine Supreme Court Justices?
222
State Courts
223
Litigation
224
Background
224
Standing
226
In Focus: Taxpayer Standing in the United States
228
Organizational Standing
231
Class Action Lawsuits
232
Jurisdiction
234
Subject Matter Jurisdiction
234
Personal Jurisdiction
235
U.S. Judicial Procedures
241
Pleadings
241
Discovery
247
The Trial
249
Additional Litigation Issues
251
Gathering Evidence Abroad
251
Where to Litigate?
252
What Law Governs?
255
Enforcement of Judgments
256
Appealing Judgments
259
Questions And Problem Cases
259
ch. 8
Alternate Dispute Resolution: The Arbitration Alternative
261
Chapter Overview
261
Chapter Objectives
261
Anticipating Legal Disputes
262
Flexible Approaches
262
Key Contractual Provisions
263
Alternatives to the Courts and Arbitration
267
Negotiation
267
Mediation
268
Mini-Trial
269
Arbitration
269
The Arbitral Institutions
270
In Focus: Resolving Digital Property Disputes Through ADR
272
Ad Hoc Arbitration
272
Uncitral Arbitration Rules
272
Arbitrating Disputes with Foreign Nations
273
Enforcing the Arbitration Agreement
274
Enforcing the Arbitration Award
280
The Future of Arbitration
284
Questions And Problem Cases
285
ch. 9
Suing Foreign Nations And Political Violence Against People
291
Chapter Overview
291
Chapter Objectives
291
Jurisdiction of Domestic Courts over Foreign Governments
292
Sovereign Immunity
292
Foreign Sovereign Immunities Act
292
The FSIA Exceptions
293
Sovereign Compulsion
298
Act of State Doctrine
299
Political Violence Against People
301
The Anti-terrorism and Effective Death Penalty Act
301
The Alien Tort Statute
306
The Torture Victim Protection Act
309
The Anti-Terrorism Act
310
Comity
311
Political Violence and Corporate Responsibility
313
Legal Implications for Global Businesses
313
Parent Liability for Foreign Subsidiaries
314
Crisis Contingency Planning
315
Questions And Problem Cases
316
pt. Four
Contracting in the Global Environment
319
ch. 10
Introduction To Contract Law
321
Chapter Overview
321
Chapter Objectives
321
Prominent Global Approaches to Contract Law
322
Civil Law Contracts
322
Common Law Contracts
323
In Focus: The Choice Between Common and Civil Law
324
Socialist Law Contracts
324
East Asian Contract Law
324
Islamic Law
325
Other Systems
326
The Law Governing U.S. Contracts
326
Common Law Rules
326
Uniform Commercial Code
327
Types of Contracts
329
Express versus Implied
329
Bilateral versus Unilateral
330
Equity
330
Quasi Contract
330
Promissory Estoppel
332
Offer
333
Elements of an Offer
333
Advertisements
335
Duration of Offers
336
Acceptance
339
Intent to Accept
339
Battle of the Forms
339
Manner of Acceptance
341
Time of Acceptance
342
Acceptance by Prompt Shipment
343
Real Consent
343
Innocent Misrepresentation
344
Fraud
344
Mistake
345
Duress
346
Undue Influence
347
Unconscionability
347
Internet Agreements
348
Consideration
349
Definition of Consideration
350
Contract Modifications
351
Illegality
352
Statutory Violations
353
Public Policy Violations
354
Writing
355
Transfers of Land
355
Guaranty Contracts
355
Long-Term Contracts
356
Sale of Goods for $500 or More
356
Contract Interpretation
358
Rules of Interpretation
358
In Focus: Chinese Contract Law
361
The Parol Evidence Rule
362
Questions And Problem Cases
362
ch. 11
The International Sale Of Goods
365
Chapter Overview
365
Chapter Objectives
365
Nature of Contracts
366
Global Issues
366
Contracts for the International Sale of Goods
367
Unidroit
367
Uncitral
367
General Principles
368
Scope
368
In Focus: Reservations in International Law
370
Interpretation
374
In Focus: Permissive versus Mandatory Forum Selection Clauses
374
Formation of the Contract
376
Offer
376
In Focus: India and the CISG
378
Acceptance
379
Consideration
382
Writing
384
Performance of the Contract
385
Warranty Provisions
385
Nonconforming Goods
386
Anticipatory Repudiation
388
Excuses for Nonperformance
389
Prevention
389
Impossibility
390
Frustration of Purpose
390
Commercial Impracticability
390
In Focus: Making Your Case
392
Force Majeure in the CISG
392
Remedies for Breach of Contract
394
Avoidance
394
Monetary Damages
394
Specific Performance
395
Reduction in Price
395
Nachfrist Notice
396
Questions And Problem Cases
397
ch. 12
International Payment Mechanisms
399
Chapter Overview
399
Chapter Objectives
399
Maximum Risk Payment Terms
400
Open Account
400
Cash in Advance
402
The Partial Prepayment Compromise
402
Commercial Paper
402
Negotiable Instruments
402
Kinds of Negotiable Instruments
403
Negotiability
403
Requirements for Negotiability
404
Holder in Due Course
405
Collections Against Documents
406
Clean Collection
406
Documentary Collections
407
Documents on Payment of a Sight Draft
407
Documents on Acceptance of a Time Draft
408
The Role of the Banking System
409
The Letter of Credit
409
Assessing the Value of a Letter of Credit
411
Governing Law
412
Revocability
412
The Three Principles Underlying Documentary Credits
412
The Strict Compliance Principle
413
Exceptions to the Underlying Principles
416
Special Types of Credits
421
Standby Letters of Credit
422
Alternate Methods of Finance
424
Factoring
424
Forfait Financing
424
Countertrade
427
Rationale
427
Types of Countertrade Transactions
428
Potential Pitfalls
429
Questions And Problem Cases
430
ch. 13
Contracts For The Carriage Of Goods
433
Chapter Overview
433
Chapter Objectives
433
Logistical Concerns
434
Packaging Needs
434
Documentary Requirements
434
Transportation Decisions
436
Freight Forwarders
436
Documents of Title
438
Bills of Lading
438
Uses of the Bill of Lading
440
Electronic Bills
441
Warehouse Receipts
441
Incoterms
442
Failure to Designate Trade Terms
442
Departure
443
Main Carriage Not Paid by Seller
443
Main Carriage Paid by Seller
444
Arrival
446
Goods Sold in Transit
447
Carriage of Goods by Road arid Rail
446
Liability of U.S. Ground Carriers
448
Liability of European Ground Carriers
449
Carriage of Goods by Air
450
U.S. Domestic Carriers
450
Warsaw Convention
450
Montreal Convention
451
Carriage of Goods by Sea
454
The Harter Act
454
COGSA
454
Hague-Visby Rules
458
Hamburg Rules
460
The Rotterdam Rules
461
Charterparties
462
Marine Insurance
462
Questions And Problem Cases
464
pt. Five
U.S. Import and Export Law
467
ch. 14
U.S. Customs And Border Protection
469
Chapter Overview
469
Chapter Objectives
469
The Customs Framework
470
Customs and Border Protection
470
Customs Modernization and Informed Compliance Act
471
Customs Compliance Enforcement
472
Informant Compensation Statute
474
Customs-Trade Partnership Against Terrorism
475
The Entry Process
476
The Entry Documents
476
The Entry Summary
476
Invoices
476
Mail Entries
477
Right to Make an Entry
477
Recordkeeping Requirements
478
Electronic Filings
479
Assessment of Duties
480
Self-Assessment and Cooperation
480
Examination of Imported Goods
480
Liquidation
480
Protests
481
Petitions
482
Binding Rulings
482
Dutiable Status of Goods
483
Dutiable Status Formula
483
Classification
483
Structure
484
Statutory Interpretation
485
The General Rules of Interpretation
486
The Special Rules of Interpretation
487
Valuation
488
Transaction Value
489
Identical or Similar Goods
493
Computed Value
494
Rate of Duty
495
Types of Duties
495
Country of Origin
496
U.S. Goods Returned
499
Duty-Saving Devices
500
Customs Bonded Warehouses
500
Foreign Trade Zones
501
Duty Drawbacks
503
Questions And Problem Cases
504
ch. 15
U.S. Export Controls
507
Chapter Overview
507
Chapter Objectives
507
The Nature of U.S. Export Controls
508
Justifications for Export Controls
508
Types of Export Controls
511
Reach of Export Controls
514
The U.S. Export Control Regime
517
Trading with the Enemy Act
517
International Emergency Economic Powers Act
518
Arms Export Control Act
518
Atomic Energy Act
519
Export Administration Act
519
Enhanced Proliferation Control Initiative
520
Key Institutions
521
Bureau of Industry and Security
521
Office of Defense Trade Controls
522
Defense Technology Security Administration
522
Office of Foreign Assets Control
522
Export Enforcement Coordination Center
522
The Wassenaar Arrangement
523
The Export Licensing Process
524
An Export
524
Determining if an Export License Is Necessary
525
Export Designations
529
Foreign Availability
531
Export Documentation
533
The Application for an Export License
533
The Import Documents
533
Delays in the Review Process
534
Enforcement
535
Criminal Liability
535
Civil Liability
535
Negotiating Settlements
535
Corporate Compliance Programs
536
Antiboycott Regulations
538
The Arab Boycott
538
The U.S. Response
538
Penalties
539
Questions And Problem Cases
540
ch. 16
U.S. Import Relief
543
Chapter Overview
543
Chapter Objectives
543
Key Participants in U.S. Import Policy
544
Customs and Border Protection
544
The Commerce Department
544
International Trade Commission
544
U.S. Trade Representative
545
Industry Trade Advisory Committees
545
Court of International Trade
546
Protection from Market Disruptions
546
The Escape Clause
547
The Escape Clause Procedure
547
Standards for Escape Clause Relief
547
Escape Clause Remedies
549
Adjustment Assistance
550
Trade Adjustment Assistance for Service Workers
552
Protection from Unfair Imports
554
Dumping
554
U.S. Antidumping Rules
555
The Dumping Investigation
555
Government Subsidies
560
U.S. Antisubsidy Law
561
The Subsidy Investigation
563
Subsidization after Privatization
564
Information Issues
565
Unfair Competition
568
Retaliation Against Foreign Trade Barriers
570
Section 301
570
Super 301
573
Special 301
573
Questions And Problem Cases
574
pt. Six
Agency and Employment Law
577
ch. 17
The Law Of Agency
579
Chapter Overview
579
Chapter Objectives
579
Creating an Agency
580
Nature of the Agency
581
Capacity
582
International Agency Agreements
583
Commercial Agents
583
Sales Representatives
583
Independent Agents
584
Dependent Agents
584
Distributors
585
Apparent Agents
585
Subagents
586
Duties of the Agent
587
Duty of Loyalty
587
Duty to Obey
593
Duty to Exercise Care
593
Duty to Communicate Information
593
Duty to Account
593
Duties of the Principal
594
Duty to Compensate
594
Duty to Reimburse and Indemnify
595
Duty to Keep Accounts
596
The Principal's Contractual Liability
596
Actual Authority
597
Apparent Authority
598
Ratification
601
Related Liability Issue
602
The Agent's Contractual Liability
602
Unauthorized Actions
603
Nonexistent or Incompetent Principal
603
Agreements to Assume Liability
604
Undisclosed Agency
604
Partially Disclosed Agency
605
Liability for Torts and Crimes
605
Respondeat Superior
605
Direct Liability
607
Criminal Liability
607
Termination of the Agency
607
Contractual Limits on Termination
607
Agency at Will
608
Limits on the Power and Right to Terminate
608
Termination by Operation of Law
610
Notice to Third Persons
611
Questions And Problem Cases
611
ch. 18
The Employment Relationship
615
Chapter Overview
615
Chapter Objectives
615
Creating the Employment Relationship
616
Employment Law Coverage
616
The Hiring Process
618
Wages, Hours, and Pensions
621
The Fair Labor Standard Act
621
Social Security Retirement Benefits
622
Private Pensions
622
Personnel Practices and Employee Privacy
623
Personnel Records
623
Workplace Testing
624
Workplace Surveillance
625
Performance Reviews
627
Workplace Health and Safety
627
Workers' Compensation
627
The Work-Related Injury Test
630
The Occupational Health and Safety Act
632
Workplace Safety Teams
632
The Family and Medical Leave Act
633
Terminating the Employment Relationship
635
Exceptions to Employment at Will
636
Right-to-Sue Waivers
637
Covenants Not to Compete
638
Unemployment Compensation
638
Employee References
638
International Employment Issues
639
Labor Relations
639
Job Security
640
Employee Participation in Management
640
Questions And Problem Cases
641
ch. 19
Employment Discrimination
645
Chapter Overview
645
Chapter Objectives
645
The Equal Pay Act
646
Title VII of the Civil Rights Act
647
Intentional Discrimination
647
Unintentional Discrimination
648
Discrimination Defenses
649
Grooming Standards
651
Sexual Stereotyping
652
Employer-Sponsored Diversity Initiatives
653
Sexual Harassment
654
The Pregnancy Discrimination Act
658
Anti-Retaliation Provisions
658
Age Discrimination
660
Disabilities Discrimination
661
Persons with Disabilities
661
Qualified Individuals
662
Association Discrimination under the ADA
663
Extraterritorial Reach of U.S. Antidiscrimination Laws
665
Foreign Employers in the United States
665
U.S. Employers Abroad
667
Conflicts Between U.S. Law and Host Country Law
667
U.S. Citizens Employed by Foreign Companies Abroad
668
Antidiscrimination Laws in Selected Countries
669
Antidiscrimination Law in the European Union
670
Antidiscrimination Law in Brazil
672
Antidiscrimination Law in Russia
673
Antidiscrimination Law in India
674
Antidiscrimination Law in China
675
Global Efforts to Prevent Employment Discrimination
676
Questions And Problem Cases
676
pt. Seven
Competition and the Protection of Ideas
679
ch. 20
Licensing And Intellectual Property Rights
681
Chapter Overview
681
Chapter Objectives
681
Intellectual Property Rights
682
Copyrights
682
Patents
689
Trademarks
694
Trade Secrets
701
National Efforts to Ensure Extraterritorial Protection
704
Unilateral Action
704
Bilateral Action
705
Global Cooperation and WIPO
705
Licensing Agreements
709
Licensing in the Developed World
710
Licensing in the Developing World
710
Intellectual Property Rights in Selected Countries
712
Intellectual Property Protection in the European Union
712
Intellectual Property Protection in Brazil
713
Intellectual Property Protection in Russia
714
Intellectual Property Protection India
714
Intellectual Property Protection in China
715
Questions And Problem Cases
717
ch. 21
Competition Law
719
Chapter Overview
719
Chapter Objectives
719
Sherman Act Penalties
720
Criminal
720
Civil
720
Corporate Leniency
720
Extraterritorial Reach of U.S. Antitrust
722
Global Resistance to U.S. Antitrust Enforcement
723
Export Trading Companies
724
Limits on Extraterritorial Application of U.S. Antitrust
724
Section 1
of the Sherman Act
727
Joint Action
727
Section 1 Analysis
730
Section 2
of the Sherman Act
734
Monopolizing Intent
735
The Clayton Act
737
Section 3 of the Clayton Act
737
Section 7 of the Clayton Act
739
The Robinson-Patman Act
740
Competition Laws Around the World
742
Competition Law in the European Union
743
Competition Law in Brazil
746
Competition Law in Russia
747
Competition Law in India
749
Competition Law in China
750
Global Cooperation
752
Questions And Problem Cases
753