Chapter 11: International Law

Question 1

League of Nations

Answer 1

Created by Woodrow Wilson after WWI; US did not join because of fighting in congress

Question 2

How was the UN formed?

Answer 2

During WWII, 50 nations met in San Fran to draw up a charger for an international body to replace the league of nations

Question 3

What percent of our profits come from international transactions?

Answer 3

50%

Question 4

Can you just do business in another country?

Answer 4

Many steps to do this process; Exporting is a privilege, the company needs a license

Question 5

International Law

Answer 5

Governs the relationships among countries

Question 6

Globalization

Answer 6

Process of global businesses supported by governments to deregulate and liberalize world markets and redefine the legal rules that govern commercial relationships

Question 7

Why has there been an increase in globalization?

Answer 7

Changes in transportation, communications, and computer technology

Question 8

What does International Law deal with?

Answer 8

Rules, principles, and customs that govern the dealing between countries and the obligations and protections of the citizens of one country towards the people of another nation

Question 9

Why is International Law more difficult than Domestic business operations?

Answer 9

Countries act in their self-interests

Question 10

Public International Law

Answer 10

Examines relationships among nations and uses rules, treaties, and conventions that are binding on all countries

Question 11

Treaties

Answer 11

Determines rules under which world traders can conduct business activities within each others territories

Question 12

Who does a treaty bind?

Answer 12

Only the countries who are parties (sign it)

Question 13

Bilateral Treaty

Answer 13

Agreement between 2 nations (China/N. Korea trade deal)

Question 14

Multilateral Treaty

Answer 14

Agreement between more than two nations

Question 15

Where does the authority come from in the US to enter a treaty?

Answer 15

US Constitution gives the President the power with the consent of the Senate to make treaties

Question 16

Convention

Answer 16

An agreement negotiated by members of international organizations, which document is then open to adoption by other nations

Question 17

Warsaw Convention

Answer 17

Originally limited damages to $75,000 on International flights unless there is willful misconduct on part of airline (still in effect today)

Question 18

Panam Airline

Answer 18

Panam had tip that one of their planes had a bomb threat, didn’t tell people, so the people could sue because this was considered willful and wanton misconduct

Question 19

Reverse Side of Ticket

Answer 19

Tells you the terms and conditions of the flight (Warsaw Convention)

Question 20

Protocol

Answer 20

A treaty of international agreement that supplements a previous treaty/international agreement; Can amend the previous treaty or add additional provisions; Parties to earlier agreement not required to adopt protocol

Question 21

1991 Protocol on Environmental Protection to the Antarctic Treaty

Answer 21

Created an environmental protection regime in Antartica

Question 22

Private International Law

Answer 22

Looks at the laws applicable to private parties in their business affairs when they are from different nations

Question 23

What type of cases does Private International Law try to solve?

Answer 23

Deciding whose law applies when a car made in Germany, sold in US crashes in Canada due to brake failure

Question 24

Lex Mercatoria

Answer 24

Merchant Law

Question 25

What does Lex Mercatoria do?

Answer 25

Have been supplemented by the active participation of the government in establishing international legal norms

Question 26

Example of Lex Mercatoria

Answer 26

Congress has signed a number of laws for international trade, and treaties have been enacted that incorporate general international legal principles into US law

Question 27

Harter Act

Answer 27

Sets forth the liability of ships for cargo losses when the shipment is between a US port and foreign country

Question 28

Foreign Sovereign Immunities Act

Answer 28

Reinforced the immunity of foreign governments in the US courts but not when engaged in commercial activity

Question 29

What can you do to an ambassador if they kill someone in the country?

Answer 29

Can't arrest them, but can kick them out of the country

Question 30

What can you do if an ambassador scams you and your lease?

Answer 30

You can sue because he is not engaging in diplomatic activity, rather he is in business activity

Question 31

United Nations

Answer 31

Most extensive of the international organizations; Has produced a number of multilateral agreements

Question 32

Purpose of the UN

Answer 32

Maintain peace, solve international problems, promotes respect for human rights

Question 33

What is the UN made up of?

Answer 33

Each country belongs to the General Assembly in the UN and has 1 vote (like congress)

Question 34

What does the General Assembly do?

Answer 34

Formulates international conventions; Can adopt resolutions, which are recommendations on matters within the scope of UN charter

Question 35

Where is the real power held in the UN?

Answer 35

Security Council

Question 36

Security Council

Answer 36

15 countries, 5 permanent (US, Russia, UK, France, China); Each has veto power over GA

Question 37

Can the UN authorize military power?

Answer 37

Yes, they agreed upon first gulf war

Question 38

International Court of Justice

Answer 38

"World Court"

Question 39

Who elects the judges of the world court?

Answer 39

The General Assembly

Question 40

Who can use the world court?

Answer 40

Only countries; Not available to individuals

Question 41

Where is the world court located?

Answer 41

The Hague, Netherlands

Question 42

How many cases does the world court hear?

Answer 42

1-2/year

Question 43

Why is the US not a member of the world court?

Answer 43

Concerned that it will be used as a mechanism to bring war crimes against the country

Question 44

European Union

Answer 44

Has torn down the geographic barriers of many European countries and promotes a common market in which people, money, and goods can be moved about with no restrictions

Question 45

How many countries are in the EU?

Answer 45

27

Question 46

What is the EU similar to?

Answer 46

Doing business between states

Question 47

How many people does the EU represent?

Answer 47

1/2 billion; Third largest population in the world

Question 48

Who in Europe does not belong to the EU?

Answer 48

Switzerland; England just dropped out

Question 49

How is the EU similar to our justice system?

Answer 49

Has a judicial, legislative, and executive branch

Question 50

What is the EU currency that they created called?

Answer 50

Euros

Question 51

African Union

Answer 51

Consistes of 53 African countries and is loosely based on the European model

Question 52

Free Trade Agreement

Answer 52

Treaty between 2 or more countries focused on the liberalizations of the trade between members of that agreement

Question 53

North American Free Trade Agreement (NAFTA)

Answer 53

Allows free trade with no barriers, tariffs, or quotas among USA, Canada, Mexico

Question 54

How much does NAFTA generate in trade?

Answer 54

$883 billion/year

Question 55

What has happened as a result of NAFTA?

Answer 55

US has more products made in Mexico because of low labor costs; Products cheaper; US will export more high-tech items like computers to Mexico because the Mexican people will have more disposable income