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(1) Common law, derived from English law and found in England, the United States, Canada, and other countries once under English influence (2) Civil or code law, derived from Roman law and found in Germany, Japan, France, and in non-Islamic and non--Marxist countries (3) Islamic law, derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states (4) A commercial legal system in the Marxist-socialist economies of Russia and the republics of the former Soviet Union, Eastern Europe, China, whose legal system is based on the economic, political, and social policies of the state The basis for common law is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulings Common law seeks “interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts” Code law is based on an all-inclusive system of written rules (codes) of law The Koran forms the basis for the Shari’ah (Islamic law) It encompasses religious duties and obligations and patterns of social and economic behavior for all individuals It includes issues such as property rights, economic decision making, and types of economic freedom The overriding objective of the Islamic system is social justice Islamic law prohibits the payment of interest Islamic doctrine advocates risk sharing, individuals’ rights and duties, property rights, and the sanctity of contract Emphasis placed on the ethical, moral, social, and religious dimensions to enhance equality and fairness for the good of society Prohibits investment in activities that violate the Shari’ah, e.g., business dealing with alcohol, gambling, and casinos With the collapse of communism, the former eastern bloc countries have developed a commercial legal system to engage in international commerce The Czech Republic and Poland
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