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Unit 6Legal System in International Business Goals of the Unit Identify the bases for legal systems distinguish the differences between the two systems concerning commercial disputes Describe the jurisdiction and legal recourse in solving international legal disputes Introduce major international arbitration organizations Read the text and find out the key elements of the two legal systems Two Bases for World Legal Systems Common law: Based on tradition, past practice, precedents set by court through interpretation of statues, legal legislation and past rulings. Prevailed in England, Canada, U.S. and other countries under English Influence Code law: Derived from Roman law on an all-inclusive system of written rules Divided into three separate codes: commercial, civil and criminal Used by the majority of the world Origins of the two legal systems In what area do the two systems differ most? Commercial ? Civil? Criminal? What is a commercial law? The body of law which governs business and commerce and is often considered to be a branch of civil law and deals both with issues of private law and public law. Commercial law regulates corporate contracts, hiring practices, and the manufacture and sales of consumer goods. Read the text and find out How do the two laws differ in governing industrial property right? How do they differ in the performance of a contract? Differences of the two systems in solving commercial disputes Under common law: Commercial disputes are subjected to either civil or commercial laws Industrial property right based on proof of agreement Performance of contract: Act of God/act of nature means extraordinary happenings not reasonably anticipated Under code law: Commercial disputes are subjected to the commercial code Industrial property right based on notarization or registration Performance of contract
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