Business
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IBM-416-Chapter12-InternationalLegalSystemsLiability1.pptInternational Legal Systems & Liability
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Legal Systems
- Civil Law
- Common Law
- Statutory Law
- Liability
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Civil Law
- Also known as Code Law
- A single written system
- Modern civil law is based on the Justinian Code or the Napoleonic Code
Justinian – leader of the Byzantine Empire
Conquered the entire world known to the West
529 A.D. codified the law to govern the empire’s citizens
1804 – Napoleon, Emperor of France, established a civil code
Established rights to a jury trial & civil equality
- Usually shorter contracts
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Common Law
- A legal system that relies on the accumulation of decisions made in prior cases
- England developed this type of law
- The United States and England still use common law
- Also known as Case Law
- Lengthier contracts
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Statutory Law
- Statutes are those laws that have been enacted by a body of lawmakers.
- The United States Congress, German Reichstag, British Parliament, Chinese National People’s Congress were all formed to pass laws to govern their citizens.
- Statutes are usually enacted to add to or change existing laws.
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Liability
- A broad legal term referring to almost every kind of responsibility, duty or obligation
In business law, relates to debt, loss, or burden
Company wages owed to employees
Dividends owed to owners
Taxes owed to government
Conditions & contents of facilities
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Product Liability
- The specific responsibility that both manufacturers and sellers have for the safely of their products
Product defects that may cause injury, damage, or death to buyers, users or even bystanders
Must use ‘due care’
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Intellectual Property Rights
Patent – Protects an invention or creation
Copyright – Protects something written
Trademark – Protects a mark, logo or design
Protection
Based on filing
Based on first use
Registration
Market by Market
Trading Blocs – EU etc.
Infringement
Protest from domestic market
Protest in market
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Foreign Corrupt Practices Act
- Passed in 1977
- Developed to address growing concerns about U.S. bribery practices in the 1970’s
- Law prohibits U.S. companies or individuals from making corrupt payments to foreign officials to obtain or keep business
- http://www.usdoj.gov/criminal/fraud/fcpa/1977hse.htm
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Japanese Lockheed Scandal
- 1976
- Lockheed was involved in a major scandal
- Involving the Japanese Marubeni Corporation and several high ranking members of Japanese political, business and underworld circles.
- Lockheed had hired underworld figure Yoshio Kodama as a consultant in order to influence Japanese airlines, including the Japanese All Nippon Airways, to purchase the L-1011 aircraft instead of the competing Douglas DC-10.
- Lockheed had paid approximately $3 million in bribes
- To the office of Japanese Prime Minister Kakuei Tanaka for aid in the matter.
- The resulting judicial process carried on for a decade, and led to the arrest of Tanaka (after his resignation due to another scandal), among others.
- In the United States, Lockheed chairman of the board Daniel Haughton resigned from his position.
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