International business law text cases and readings 6th global edtion by august

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International Business Law Text, Cases, and Readings Sixth Edition This page intentionally left blank International Business Law Text, Cases, and Readings Sixth Edition Ray August (1944–2004) J.D., University of Texas at Austin; LL.M in International Law, University of Cambridge; Ph.D in American Legal History, University of Idaho with revisions by Don Mayer Professor in Residence, Daniels College of Business, University of Denver; J.D., Duke University; LL.M in International and Comparative Law, Georgetown University Law Center; Member, North Carolina State Bar and Michael Bixby Professor, Legal Studies in Business, Boise State University; J.D., University of Michigan; Member, State Bar of Michigan International Editions contributions by Suryapratim Roy Researcher in Behavioural Law and Economics, University of Groningen Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Executive Editor: Stephanie Wall Director Editorial Services: Ashley Santora Senior Editorial Project Manager: Karen Kirincich Editorial Assistants: Jane Avery, Lauren Zanedis Marketing Manager: Jami Minard Senior Managing Editor: Nancy Fenton Associate Managing Editor: Karen Carter Senior Manufacturing Buyer: Megan Cochran Manager Central Design: Jayne Conte Publisher, International Edition: Angshuman Chakraborty Publishing Administrator and Business Analyst, International Edition:    Shokhi Shah Khandelwal Senior Print and Media Editor, International Edition: Ashwitha Jayakumar Associate Acquisitions Editor, International Edition: Jayashree Arunachalam Publishing Administrator, International Edition: Hema Mehta Project Editor, International Edition: Daniel Luiz Senior Manufacturing Controller, Production, International Editions: Trudy Kimber Permissions Specialist: Jill Dougan Image Lead Manager: Mike Lackey Project Management and Page Makeup: Laserwords Private Limited Cover Printer: Courier/Kendallville Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoninternationaleditions.com © Pearson Education Limited 2013 The right of Ray August, Don Mayer and Michael Bixby to be identified as authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled International Business Law: Text, Cases, and Readings, 6th edition, ISBN 978-0-132-71897-4, by Ray August, with revisions by Don Mayer and Michael Bixby, published by Pearson Education © 2013 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose All such documents and related graphics are provided “as is” without warranty of any kind Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services The documents and related graphics contained herein could include technical inaccuracies or typographical errors Changes are periodically added to the information herein Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time Partial screen shots may be viewed in full within the software version specified Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A and other countries This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation ISBN 10: 0-273-76861-1 ISBN 13: 978-0-273-76861-6 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 14 13 12 11 10 Typeset in Times LT Std by Laserwords Private Limited Printed and bound by Courier Kendaville in The United States of America The publisher’s policy is to use paper manufactured from sustainable forests Brief Contents preface 17 Chapter   1  Introduction to International and Comparative Law  21 Chapter   2  State Responsibility and Environmental Regulation  71 Chapter   3  Dispute Settlement  127 Chapter   4  The Multinational Enterprise  183 Chapter   5  Foreign Investment  238 Chapter   6  Money and Banking  300 Chapter   7  Trade in Goods  358 Chapter   8  Services and Labor  429 Chapter   9  Intellectual Property  489 Chapter 10 Sales 559 Chapter 11 Transportation 609 Chapter 12 Financing 657 Case Index  702 Statutory Index  705 Topical Index  716 Contents Preface  17 Chapter 1  Introduction to International and Comparative Law  21 What Is International Law?  21 CASE 1-1 Ignacio Sequihua v Texaco Inc et al.  23 The Making of International Law  25 Sources of International Law  25 Treaties and Conventions  25 Custom 27 General Principles and Jus Cogens 28 The Scope of International Law in Actual Practice  28 The Practice in International Tribunals  28 The Practice in Municipal Courts  29 CASE 1-2 Sei Fujii v State of California  30 International Persons  32 States 32 Territorial Sovereignty  34 Negative Servitudes: Air and Water Pollution  34 CASE 1-3 The Trail Smelter Arbitration  35 International Organizations  39 READING 1-1 Overview of the UN Global Compact and the Millennium Development Goals, and the Ten Principles  44 READING 1-2 The End of the Euro? Fears of Financial Contagion  48 CASE 1-4 Commission of the European Communities v Federal Republic of Germany  51 The Institutions of the European Union  54 The Rights of Individuals Under International Law  62 CASE 1-5 De Sanchez v Banco Central De Nicaragua  63 Comparison of Municipal Legal Systems  65 The Romano-Germanic Civil Law System  65 The Anglo-American Common Law System  68 The Islamic Law System  69 Chapter Questions  70 Chapter 2  State Responsibility and Environmental Regulation  71 Introduction 71 State Responsibility  72 Doctrine of Imputability  72 Nonimputable Acts  72 CASE 2-1 Sandline International Inc v Papua New Guinea  73 CASE 2-2 Flatow v The Islamic Republic of Iran  78 READING 2-1 State Responsibility, Corporate Responsibility, and Terrorism  83 Fault and Causation  87 Standard of Care  88 The National Standard of Care  88 Contents  The International Standard of Care  88 Expropriation 89 In Brief: CASE 2-3 Acsyngo v Compagnie De Saint-Gobain (France) S.A.  90 Denial of Justice  93 CASE 2-4 Chattin v United Mexican States  93 Objections 96 Lack of Standing  96 Lack of Nationality  96 Lack of a Genuine Link  97 Failure to Exhaust Remedies  97 CASE 2-5 The M/V Saiga Case (Merits)  98 Other Objections  103 Relief 103 Insurance 103 CASE 2-6 Re Letelier and Moffitt  104 Private Insurers  107 National Investment Guaranty Programs  107 Multilateral Investment Guaranty Programs  109 Environmental Protection  109 Regulation of Pollution  111 CASE 2-7 Southern Bluefin Tuna Cases: Provisional Measures  112 READING 2-2 The U.S View and the “Basic” View on the Kyoto Protocol and its Renewal  120 Protection of Natural Resources  123 Liability for Environmental Damage  124 Chapter Questions  125 Chapter 3  Dispute Settlement  127 Settlement of Disputes Through Diplomacy  127 Negotiation 128 Mediation 128 Inquiry 128 Settlement of Disputes in International Tribunals  129 International Court of Justice  129 READING 3-1 Iran and the United States at the ICJ: Oil Platforms Case (Islamic Republic of Iran v United States of America)  133 International Criminal Court  135 World Trade Organization Dispute Settlement Procedures  136 CASE 3-1 Japan—Taxes on Alcoholic Beverages  138 International Center for the Settlement of Investment Disputes  140 CASE 3-2 In the Matter of the Loewen Group Inc and Raymond L Loewen, ­Claimants/Investors v United States of America Respondent/Party  145 Other Arbitration Tribunals  148 Settlement of Disputes in Municipal Courts  148 Jurisdiction in Criminal Cases  148 Jurisdiction in Civil Cases  149 Jurisdiction over Persons  149 CASE 3-3 Bumper Development Corp Ltd v Commissioner of Police of the Metropolis and Others (Union of India and Others, Claimants)  150 8 Contents CASE 3-4 Shell v R W Sturge, Ltd.  154 Immunities of States from the Jurisdiction of Municipal Courts  159 Sovereign or State Immunity  159 READING 3-2 China and Sovereign Immunity  162 CASE 3-5 Abbott v Republic of South Africa  163 Act of State Doctrine  167 CASE 3-6 W.S Kirkpatrick Co., Inc v Environmental Tectonics Co.  167 Choosing the Governing Law  169 Agreement of the Parties  170 Statutory Choice of Law Provisions  170 Most Significant Relationship  171 CASE 3-7 Bank of India v Gobindram Naraindas Sadhwani and Others  172 Governmental Interest  175 Refusal To Exercise Jurisdiction  176 Opposition to the Exercise of Jurisdiction  176 CASE 3-8 Jorge Luis Machuca Gonzalez et al v Chrysler Corporation et al.  177 Proving Foreign Law  180 Recognition of Foreign Judgments  181 Chapter Questions  181 Chapter 4  The Multinational Enterprise  183 Introduction  183 Strategies for Doing Business Globally  184 Exporting and Importing  184 Branches and Subsidiaries  184 READING 4-1 China Merchants Bank  185 Licensing Intellectual Property and Franchising  185 The Business Form  186 The Importance of the Separate Legal Identity of Juridical Entities  186 The Multinational Organization  186 The Parent Company  186 CASE 4-1 Case Concerning Barcelona Traction, Light and Power Co (Second Phase)  187 The Subordinate Structure  192 International Regulation of Multinational Enterprises 193 READING 4-2 The ISO 26,000 Standard for Global Business Conduct 193 Bribery and Corruption Rules  196 Home State Regulation of Multinational Enterprises  196 Unfair Competition Laws  196 CASE 4-2 Metro Industries v Sammi Corp.  200 In Brief: CASE 4-3 Airbus Industrie G.I.E v Patel  208 READING 4-3 F Hoffman-La Roche Ltd v Empagran  209 Tort and Products Liability Laws  210 CASE 4-4 Dow Jones & Co Inc v Gutnick  211 In Brief: CASE 4-5 World-Wide Volkswagen v Woodson  217 Contents  CASE 4-6 Asahi Metal Industry Co., Ltd v Superior Court of California, Solano County United States Supreme Court  219 Sharp Practices  224 CASE 4-7 United States v Blondek, Tull, Castle, and Lowry  225 READING 4-4 Current Events in International Law: The New Global Reach of Anti-Corruption Laws  229 Host State Regulation of Multinational Enterprises  231 Consent to the Jurisdiction of the Host State  231 Common Enterprise Liability  231 CASE 4-8 Touche Ross & Co v Bank Intercontinental, Limited  232 Piercing the Company Veil  236 Chapter Questions  236 Chapter 5  Foreign Investment  238 Foreign Investment Laws and Codes  239 READING 5-1 Pacific Rim Mining v El Salvador: An ICSID Arbitration under the U.S.-Dominican Republic Central American Free Trade Agreement (DR-CAFTA) 240 National Foreign Investment Policies  243 Regional Investment Policies  245 Screening Foreign Investment Applications  246 Formal and Informal Application Processes  248 Approval of Foreign Investment Applications  249 In Brief: CASE 5-1 Arab Republic of Egypt v Southern Pacific Properties, Ltd., et al.  249 Business Forms  250 Limitations on Foreign Equity  252 Sectoral Limitations  252 READING 5-2 Foreign Direct Investment in India  253 Geographic Limitations  257 CASE 5-2 Brady v Brown  257 Free Zones  262 CASE 5-3 Nissan Motor Mfg Corp., U.S.A v United States  264 Foreign Investment Guarantees  268 Supervision of Foreign Investment  270 Start-Up Standards  270 Operational Reviews  270 Modification of Foreign Investment Agreements  271 CASE 5-4 Arbitration Between Wintershall AG et al and the Government of Qatar  271 Protection of Subsidiaries  274 CASE 5-5 The Bhopal Case  277 Penalties for Noncompliance  281 Securities Regulations  282 Securities 282 Trading in Securities  283 Securities Exchanges  283 Issuance of Securities  284 Clearance and Settlement Procedures  286 Insider Trading Regulations  287 CASE 5-6 Batchelder v Kawamoto  288 Takeover Regulations  292 www.downloadslide.net Topical Index   719 mixed sales of goods and services, applicability to, 568 opting in or out of, 562–567 parties to, 560, 561 performance, general standards of, 587–588 personal injury actions, exclusion of, 569, 570 plain meaning rule, 573 preemption of domestic law where CISG applicable, 570–572 private international law rules as source for interpreting, 574 sales, defined, 567 third-party claims, exclusion of, 569, 570 transactions covered by, 560–569 travaux préparatoires, 573 Convention on Insider Trading, 296 Convention on Nomenclature for the Classification of Goods in Customs Tariffs, 386 Convention on Stolen or Illegally Exported Cultural Objects, 396 Convention on the Contract for International Carriage of Goods by Road (CMR), 622 Convention on the Means of Prohibiting and Preventing the Illicit Import, Export, and Transfer of Ownership of Cultural Property, 395 Convention on the Protection of the Archaeological, Historical, and Artistic Heritage of the American Nations, 395 Convention on the Settlement of International Disputes between States and Nationals of Other States, 62 Convention on the Settlement of Investment Disputes between States and Nationals of Other States, 140 Convention Relating to the Distribution of Program-Carrying Signals Transmitted by Satellite (Satellite Transmission Convention), 530 Coordinating Committee on Multilateral Export Controls (COCOM), 396 copyrights, 490–504 compulsory licenses, 557 defined, 490 distribution rights, 492 doctrine of exhaustion, 492 duration of, 504 exceptions to, 504 expression, 501 formalities, 503 moral rights, 497–498 neighboring rights, 502 original works, 501 pecuniary rights, 491 performance rights, 493 reproduction rights, 491–494 scope of, 503 works covered by, 498 Corpus Juris Civilis, 65, 66 correspondent banks, 343 corruption, at World Bank, 326 Cosmopolitans, 22 cost and freight (CFR), 616 cost, insurance, and freight (CIF), 616 COTIF See Convention Concerning International Carriage by Rail (COTIF) Council for Trade in Services, GATS, 436–437, 438 Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council), 526 Council of Europe, 58 worker rights, protection of, 466–468 Council of the European Union, 54 counterterrorism conventions, 77–78 countertrade, 699–700 countervailing measures Agreement on (See Agreement on Subsidies and Countervailing Measures (SCM Agreement)) defined, 420 country of origin of goods, 425 Court of Common Pleas, 68 Court of Exchequer, 68 Court of King’s Bench, 68 courts Court of Common Pleas, 68 Court of Exchequer, 68 Court of King’s Bench, 68 European Court of First Instance, 57 European Court of Justice, 56 International Court of Justice (ICJ) (See International Court of Justice (ICJ)) municipal (See municipal courts) pepoudrous, 66 credit tranche, 323–324 creditors of subsidiaries, protections for, 276–277 creeping expropriation, 108 cross-licensing agreements, 542 cross-ownership of shares, 293 culpa (fault), 87 cultural property, export controls for protection of, 395–396 currency See also money basket (See currency basket) cash forward contracts, 346 convertibility guarantees, OPIC, 108 exchange mechanisms (See currency exchange) hard, 343 intermediary, 343 soft, 343 support function, of IMF (See currency support, by IMF) currency basket defined, 305 Special Drawing Right (SDR), 305–307 currency exchange enforcement of exchange control regulations, 314–319 enforcement of general obligations, 322–323 exchange contracts, defined, 313–314 exemptions for new members, 323 obligations of IMF member states, 313–314 par value system, 313 Second Amendment system, 313–314 currency support, by IMF, 323–324 compensatory financing facility, 324 concessional facility, 324 conditionality, 324 contingent credit lines, 324 credit tranche, 323 extended fund facility, 323 facilities available to member states, 323–324 Poverty Reduction and Growth Facility, 324 reserve tranche, 323 special facilities, 324 standby arrangements, 324 supplemental reserve facility, 324 current international transaction, 322 custom, 27–28 defined, 27 opinio juris sive necessitates, 27 persistent objections to, 27–28 usus, 27 Custom of Paris, 67 Customs Cooperation Council (CCC), 386, 425 customs unions, 60, 386 customs valuation, 399 www.downloadslide.net 720  Topical Index Customs Valuation Code See Agreement on Implementation of Article VII of Gatt 1994 (Customs Valuation Code) D damages for breach of contract, 606 compensatory damages, 103 foreseeability test, 606 mitigate losses, duty to, 606 dead freight charge, 646 debt funding, 696 declaratory doctrine, 33 deductive value method of customs valuation, 399 delicts, 171 delivered ex ship (DES), 614 delivery of goods, sales contracts by carrier, 598–599 means of, 598–599 place for, 589 time for, 589 trade terms (See trade terms) without being transported, 599 demurrage, 646 denial of justice, 93–96 dependent states, 32–33 depository receipts, 287 Depository Trust Company Corporation (DTCC), 286 derived value method of customs valuation, 399 DES See delivered ex ship (DES) design patents, 506 destination contracts, 599 development banks, 324–333 financing of foreign operations, 697–698 International Fund for Agricultural Development (IFAD), 325 regional development organizations, 325 World Bank (See World Bank) diplomacy, 127–129 defined, 127 inquiry, 128–129 mediation, 128 negotiation, 128 direct effect, of GATT 1994 provisions, 376 dirty hands, 103, 606–607 disclosure obligations, of subsidiaries, 274–276 dispositive treaties, 38 dispute settlement, 127–181 choice of law (See choice of law) by diplomacy (See diplomacy) International Labor Organization (ILO), 449 jurisdiction (See jurisdiction) in municipal courts (See municipal courts) Dispute Settlement Body (DSB), WTO, 136, 416 distinctiveness, of trademarks, 516 distribution rights, copyrighted works, 492–496 distributorships, 533 documents against acceptance, 682 documents against payment, 682 DSB See Dispute Settlement Body (DSB),WTO DTCC See Depository Trust Company Corporation (DTCC) Dumbarton Oaks conference, 361 dumping Anti-dumping Code, 409–410 defined, 409 duty-free zones See free retail zones E EAEC See European Atomic Energy Community (EAEC or Euratom) Eastern Caribbean Currency Authority (ECCA), 336 EC Treaty See European Community Treaty (EC Treaty) ECB See European Central Bank (ECB) ECCA See Eastern CaribbeanCurrency Authority (ECCA) Economic and Monetary Community of Central Africa (CEMAC), 337 Economic and Social Council (ECOSOC), United Nations, 41, 387 economic consultative associations, 61 ECOSOC See Economic and Social Council (ECOSOC), United Nations ECSC See European Coal and Steel Community (ECSC) Treaty effects test, subject matter jurisdiction, 199 EFTA See European Free Trade Association (EFTA) EMCC See Emerging Markets Clearing Corporation (EMCC) Emerging Markets Clearing Corporation (EMCC), 287 eminent domain, 89 employment law See labor laws and regulations EMU See European Monetary Union (EMU) endorsement of bills and notes agency, 670 blank, 667 for collection, 669 conditional, 669 defined, 669 effect of, under common law and ULB, 670 fictitious payee rule, 674 forged, 670–674 imposter rule, 671 prohibiting further endorsements, 669 qualified, 669 restrictive, 669 special, 666–667 enforcement of disclosure requirements for subsidiaries, 276 foreign investment laws or agreements, penalties for noncompliance with, 282 of foreign judgments, 181 of ICSID awards, 148 of IMF currency exchange regulations and general obligations, 314–323 of securities regulations, 295–298 of WTO dispute settlements, 137 environmental protection, 109–124 Conference on the Environment and Development (See United Nations Conference on the Environment and Development) liability for environmental damage, 124 natural resources protection, 123–124 nuclear materials, 123 pollution, regulation of (See pollution, regulation of) precautionary approach, 110 Stockholm Conference on the Human Environment, 109 toxic waste, regulation of, 123 EPZs See export processing zones (EPZs) equality of treatment doctrine See national standard of care equity, 68 equity funding, 697 escape clause, under GATT 1994, 388 ESCB See European System of Central Banks (ESCB) www.downloadslide.net Topical Index   721 estoppel, 38 Estrada doctrine, 34 EU See European Union (EU) EU Treaty See European Union (EU) Treaty Euratom See European Atomic Energy Community (EAEC or Euratom) euro, 338 Euroclear, 286 Eurocurrency deposits, 342 Eurodollars, 342 European Atomic Energy Community (EAEC or Euratom), 46 European Central Bank (ECB), 58, 337 European Coal and Steel Community (ECSC) Treaty, 46 European Commission, EU, 55 European Community Treaty (EC Treaty), 46, 206, 462–463 European Convention on Human Rights of 1950, 466–468 European Council, EU, 54–55 European Court of Auditors, EU, 58 European Court of First Instance, EU, 57 European Court of Human Rights, 59 European Court of Justice, EU, 47, 56–57 European Economic and Social Committee, EU, 57 European Free Trade Association (EFTA), 61 European Monetary Union (EMU), 337 European Parliament, EU, 55–56 European Social Charter, 467–468 European Space Agency, 59 European System of Central Banks (ESCB), 58, 337, 338 European Union (EU), 45–47 Berlin Declaration, 46 codecision procedure, 56 Council of the European Union, 54 Court of Auditors, 58 Court of First Instance, 57 Court of Justice, 47, 56–57 Economic and Social Committee, 57 European Central Bank (ECB), 58 European Commission, 55 European Council, 54–55 European Parliament, 55–56 European System of Central Banks (ESCB), 58 freedom of movement of workers, 462–465 freedom to provide services, 442 historical background, 46 institutions of, 54–62 labor laws, 462–465 member states, 45–46 passport requirements, 469 right of establishment, 441–442 Services Directive, 442 supranational powers, 47–53 trade in services, law on, 441–442 European Union (EU) Treaty, 46 ex works (EXW), 620 exceptions commercial activity exception to sovereign immunity, 159–162 to GATT 1994, 388–389 to General Agreement on Trade in Services (GATS), 437–438 exchange contracts, defined, 314–315 exclusive licenses, 543–545 executive agreements, 29 Executive Board, IMF, 310–313 exhaustion-of-rights doctrine, 492, 536–539 export controls, 389, 395 Australia Group, 396 cultural property, protection of, 395–396 Missile Technology Control Regime, 398 Nuclear Suppliers Group (NSG), 397–398 United Nations sanctions, 398 Wassenaar Arrangement, 396 Zangger Committee, 397 export processing zones (EPZs), 267 export restrictions, on intellectual property licenses, 539 Export-Import Bank, 698 Exporters Insurance Company of Bermuda, 107 exporting businesses, 184 expropriation, 89–93 constitutional provisions regarding, 268 creeping, 108 defined, 89, 268 guarantees related to, 268–269 insurance coverage for, 108 extended fund facility, 323 extraordinary rendition, 77 extraterritorial application of laws labor laws and regulations, 483–486 over foreign banks, by U.S subpoenas of foreign branches, 346–347 securities regulations,U.S., 295 EXW See ex works (EXW) F facilities of Bank for International Settlements (BIS), 334 of International Monetary Fund (IMF), 323–324 factor See agents, for multinational enterprises Fahd, King of Saudi Arabia, 69–70 false conflicts case, choice of law in, 175 FAS See free alongside ship (FAS) fault, and state responsibility, 87 FCA See free carrier (FCA) fictitious payee rule, 674 Field Code of New York, 69 Field, David Dudley, 69 field-of-use restrictions, on intellectual property licenses, 548–549 Final Act, Uruguay Round, 365, 366, 367 financial contagion, 324 financing, 657–701 bills of exchange (See bills of exchange) bills of lading (See bills of lading) countertrade, 699–700 foreign operations (See financing foreign operations) of foreign trade, 658 letters of credit (See letters of credit) promissory notes (See promissory notes) financing foreign operations, 697–699 debt funding, 697 development banks, 697 equity funding, 697 governmental sources of capital, 697–698 import and export financing agencies, 698 firm offers, 582 FOB See free on board (FOB) force majeure, 603, 606–607 Foreign Credit Insurance Association, 107 foreign exchange contracts (See foreign exchange contracts) defined, 343 market, 343 foreign exchange contracts, 344–346 forward contracts, 346 future contracts, 344 hedging contracts, 344–255 option contracts, 346 spot contracts, 344 www.downloadslide.net 722  Topical Index foreign investment, 238–299 applications (See applications, foreign investment) bilateral investment treaties (BITs) (See bilateral investment treaties (BITs)) business forms, 250–252 direct investment in India, 252–256 foreign equity limitations, 252 free trade areas (FTAs), 60, 263 free zones (See free zones) geographic limitations, 257–262 guarantees (See guarantees, for foreign investment) laws and codes, 238–299 modification of investment agreements, 271–274 national policies, 243–245 operational reviews, 270 penalties for noncompliance with laws or agreements, 281 protection of subsidiaries (See subsidiaries) regional policies, 245–246 sectoral limitations (See sectoral limitations, on foreign investment) securities regulations (See securities regulations) start-up standards, 270 supervision of, 270–274 foreign judgments, recognition of, 181 foreign priority sectors, 253 foreseeability test, damages, 606 forged endorsements, 670–674 forum, 148 forum non conveniens, 176, 224 forum selection clauses, 154–159 forward contracts, 346 Four Freedoms Speech (Roosevelt), 455 franchises and franchising, 185–186, 533–534 chain-style business arrangement, 533 defined, 533 distributorships, 533 license, distinguished, 533 manufacturing or processing plant, 533–534 fraud and letters of credit, 693–696 at World Bank, 326 Frederick the Great, 67 free alongside ship (FAS), 616 free carrier (FCA), 620 free city, 263 free on board (FOB), 615–616 free retail zones, 267 free trade areas (FTAs), 60, 263, 386 free trade zones (FTZs), 263 free zones, 262–268 activities allowed in, 267 bonded warehouses, 268 defined, 262–268 export processing zones (EPZs), 267 free city, 263 free retail zones, 267 free trade areas (FTAs), 60, 263 free trade zones (FTZs), 263 maquiladora program, 267 subzones, 263 freedom of movement of workers, EU, 462–463 freedom to provide services, in EU, 441 freight forwarders, 620 French Civil Code of 1804, 67 FTAs See free trade areas (FTAs) FTZs See free trade zones (FTZs) G GATS See General Agreement on Trade in Services (GATS) GATT See General Agreement on Tariffs and Trade (GATT) GEF See Global Environment Facility (GEF) General Agreement on Tariffs and Trade (GATT 1947), 363, 387, 399 codes, 364 Kennedy Round, 364 most-favored-nation status, 363 multilateral trade negotiations, 363–364 national treatment principle, 363 Tokyo Round, 364 transparency requirement, 363 Uruguay Round, 364–365, 367 General Agreement on Tariffs and Trade (GATT 1994), 136, 376–398 commodity arrangements, 387–388 contents of, 376–398 cultural property, protection of, 395–396 direct effect of, 376 escape clause, 388 exceptions, 388–389 export controls, 389, 395 Generalized System of Preferences (GSP), 380 most-favored-nation rule, 380 national treatment rule, 380 nondiscrimination principle, 380 safeguards, 388 South-South Preferences, 380 tariffs, use of, 385 transparency requirement, 386 General Agreement on Trade in Services (GATS), 136, 429–441 annexes, 436–437, 439–441 Council for Trade in Services, 436–437 Framework Agreement, 430 general exceptions, 437 general obligations of member states, 435–436 institutional structure, 438 most-favored-nation (MFN) treatment, 435 NAFTA provisions compared, 444 national treatment, 435–436 progressive liberation as goal of, 438 purpose of, 429–488 regional economic integration, 435 restrictions, requirements regarding, 435–436 Schedules of Specific Commitments, 438–441 scope and definitions, 430–434 security exceptions, 437 specific commitments to market access for sectors, 437–438 trade in services, defined, 430 transparency provision, 435 General Assembly, United Nations, 41 general average, in maritime ventures, 654 general exceptions to GATT 1994, 388–389 to General Agreement on Trade in Services (GATS), 437 general IGOs, 58–59 general principles of law, 28 Generalized System of Preferences (GSP), 380 genetically modified foods, 402 Geneva Conventions on the Unification of the Law Relating to Bills of Exchange (ULB), 659, 670, 675 Geneva Conventions on Unification of the Law Relating to Checks (ULC), 659 genuine link, lack of, 97 geographic limitations, on foreign investment, 257–262 German Civil Code of 1896, 67 Global Environment Facility (GEF), 325 Global Financial Stability Report, 309 global warming, 118–122 globalization, 359 glossators, 65 gold bullion standard, 307 gold standard, 307 www.downloadslide.net Topical Index   723 good offices, 128 goods conformity of (See conformity of goods to contract) defined, 567 delivery of (See delivery of goods, sales contracts) trade in (See trade in goods) governing law See choice of law governmental interest doctrine, 175 grant-back provisions, 551 gray marketing, 539 Great Depression, 307, 308, 360–362 Group of 77 (G-77), 61 Group of Eight (G-8), 240 GSP See Generalized System of Preferences (GSP) guarantees, for foreign investment, 268–270 nondiscrimination guarantees, 269 repatriation guarantees, 269 stabilization clauses, 270 H Hague Choice of Courts Agreement Convention, 24 Hague Rules See International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading Hague-Visby Rules, 623, 634 hard currencies, 343 Harmonized System (HS) of tariffs, 386 Havana Charter, ITO, 362, 367 Hawley-Smoot Tariff Act of 1930, 360 HDC See holder in due course (HDC) hedging contracts, 344–345 Henry II, King of England, 68 Himalaya clause, 644 Hobbesian view of international law, 22 holder, 675 holder in due course (HDC), 675 holding companies, 193 horizontal competition agreements, 542 HS See Harmonized System (HS) of tariffs human rights, 62–65 European Convention on Human Rights of 1950, 465–466 intergovernmental organizations (IGOs) and, 58–59 state responsibility compared, 62–65 of workers, 456–462 Human Rights Commission, 59 humanists, 66 I IAEA See International Atomic Energy Agency (IAEA) IASB See International Accounting Standards Board (IASB) ICANN See Internet Corporation for Assigned Names and Numbers (ICANN) ICC See International Chamber of Commerce (ICC); International Criminal Court (ICC) ICJ See International Court of Justice (ICJ) ICSID See International Center for the Settlement of Investment Disputes (ICSID) IDA See International Development Agency (IDA) IFAC See International Federation of Accountants (IFAC) IFAD See International Fund for Agricultural Development (IFAD) IFC See International Finance Corporation (IFC) IGOs See intergovernmental organizations (IGOs) ijtihad, and Islamic law, 70 ILO See International Labor Organization (ILO) ILO Convention No 87 See Convention Concerning Freedom of Association (ILO Convention No 87) ILO Convention No 98 See Convention Concerning the Application of the Principles of the Right to Organize and to Bargain Collectively (ILO Convention No 98) IMF See International Monetary Fund (IMF) immunity, 148 act of state doctrine, 167–169 defined, 148 sovereign (See sovereign immunity) import-licensing procedures, 408 importing businesses, 184 imposter rule, 671 imputability doctrine, 72 impute, 72 in personam jurisdiction, 149–150 in rem jurisdiction, 159 in-transit contracts, 599 incorporation, doctrine of, 29 Incoterms, 610 independent lines, 623 independent states, 32 India bilateral investment treaties (BITs), 242–243 foreign direct investment in, 253–256 industrial property, 490 inventions, 490 trademarks (See trademarks) injunctions, anti-suit, 180 inland carriage of goods, 621–622 inquiry, 128–129 insider, 291 insider trading, 287–292 Convention on Insider Trading, 296 defined, 287 material information, 291, 292 installment note, 662 instruction, money transfers, 346 insurance, 103–106 defined, 103 maritime (See maritime insurance) multilateral investment guaranty programs, 109 national investment guaranty programs, 107–109 private insurers, 107 types of international products, 103 Integrated Program for Commodities (IPC), 388 integration clauses, 575 intellectual property, 490 artistic property, 490 copyrights (See copyrights) creation of rights, 490–524 defined, 490 industrial property (See industrial property) international organizations protecting, 524 international transfer of, 533–534 know-how, 523–524 licensing of (See licensing of intellectual property) patents (See patents) treaties, 526–533 intentional tort liability, 210–213 Inter-American Commission on Human Rights, 59 interest, on bank deposits, 343 intergovernmental organizations (IGOs), 40–53 See also European Union (EU); United Nations; specific organizations defined, 40 general IGOs, 58–59 legal capacity of, 40 numbers of, 40 specialized IGOs, 59–61 www.downloadslide.net 724  Topical Index intermediary currency, 344 International Accounting Standards Board (IASB), 275 International Air Transport Association, 61 International Atomic Energy Agency (IAEA), 42, 123 International Bar Association, 61 International Bureau of Industrial Property, 40 International Bureau of Literary Property, 40 International Center for the Settlement of Investment Disputes (ICSID), 140–148, 239, 240 constituting a tribunal, 141–142 enforcement, 147 as exclusive remedy, 143 investment, defined, 142 jurisdiction, 143–144 NAFTA arbitrations under, 144–145 organizational structure, 140 place of arbitration, 142 provisional measures and awards, 147 purpose of, 140 rules for arbitration and conciliation, 141 selecting arbitrators, 142 unilateral withdrawal, effectiveness of, 142 International Chamber of Commerce (ICC), 62, 148 Incoterms, 599, 610, 614 Uniform Rules for Collections, 660 International Coffee Organization, 59–60 International Committee of the Red Cross, 61 International Convention for the Protection of Industrial Property (Paris Convention), 505, 524, 527, 531 International Convention for the Protection of Performers, Producers of Phonograms, and Broadcasting Organizations (Rome Convention), 529 International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (Hague Rules), 623 International Convention for the Unification of Certain Rules of Law Relating to Maritime Liens and Mortgages (Brussels Convention), 647 International Court of Justice (ICJ), 25, 129–134 advisory jurisdiction, 130, 132 composition of, 129–130 contentious jurisdiction, 130 functions of, 129 judgments, 132 jurisdiction of, 130–134 optional clause jurisdiction, 130–131 rule of reciprocity, 131 self-judging reservations, 132 International Covenant on Economic, Social and Cultural Rights, 455 International Criminal Court (ICC), 135 International Criminal Police Organization (INTERPOL), 60 International Development Agency (IDA), 325 International Federation of Accountants (IFAC), 275 International Finance Corporation (IFC), 325 International Fund for Agricultural Development (IFAD), 325 International Institute for the Unification of Private Law (UNIDROIT), 60, 389 International Labor Organization (ILO), 62, 445–462 Administrative Tribunal, 450 Commission of Inquiry, 449 Committee of Experts on the Application of Conventions and Recommendations, 448 Conference Committee on the Application of Conventions and Recommendations, 449 conventions, 446, 450 disabilities, report on workers with, 447 dispute settlement, 449 Fact-Finding and Conciliation Commission, 450 General Conference, 445 goal of, 445 Governing Body, 445 institutional structure, 445 International Labor Office, 445, 450 international labor standards, 446 recommendations, 447 reporting requirements for member states, 448 special list of defaultees, 449 international law, 21–70 Cosmopolitan view of, 22 defined, 21 Hobbesian view of, 22 in international tribunals, 28–29 jurisdiction (See jurisdiction) making of, 25 in municipal courts, 29–30 parties to, 32–62 Positivist view of, 22, 72 rights of individuals under, 62–65 scope of, in actual practice, 28–32 sources of, 25–28 International Monetary Fund (IMF), 307–313, 361 Articles of Agreement, 307, 308, 309 cooperation with World Bank, 332–333 currency exchange (See currency exchange) currency support (See currency support, by IMF) operations of, 313, 331–332 organization of, 312 origin of, 307–309 purpose and functions of, 309, 328–329 quotas, 310 recipients of funding, 330 size and structure, 328–329 sources of funding, 330 Special Drawing Right (SDR), 306, 307, 309 role of, 309 World Bank compared and contrasted, 328–333 international monetary system, 307–313 international multinational enterprises, 190–192 International Securities Clearing Corporation (ISCC), 287 international standard of care, 88–89 International Trade Organization (ITO), 362, 367 International Tribunal for the Law of the Sea, 112–116 Internet Corporation for Assigned Names and Numbers (ICANN), 526 INTERPOL See International Criminal Police Organization (INTERPOL) interpretation of sales contracts, 574–580 integration clauses, effect of, 575 negotiations, consideration of, 575 objective intent approach, 575 parol evidence rule, applicability of, 575 practices, 575–579 statements and conduct of parties, 575 subjective intent approach, 575 usages, 575–579 inventions, 490 inventive step, for patents, 507 www.downloadslide.net Topical Index   725 investment defined, for ICSID arbitrations, 144 foreign (See foreign investment) IPC See Integrated Program for Commodities (IPC) irrevocable letters of credit, 689, 690 ISCC See International Securities Clearing Corporation (ISCC) Islamic banking, 340–342 Islamic law system, 69–70 ITO See International Trade Organization (ITO) J Japan insider trading regulations, 292 product liability laws, 214–215 joint venture, 193 joint venture laws, 238–239 Joseph II, King of Austria, 67 judgments foreign, recognition of, 181 of International Court of Justice (ICJ), 132 juridical entities, 186 juridical person (persona ficta), 143, 149–150 jurisdiction bases for exercising, 24–25 in civil cases, 149–159 in criminal cases, 148–149 forum non conveniens as grounds for refusal to exercise, 176 forum selection clauses, 154–159 immunity from (See immunity) of International Center for the Settlement of Investment Disputes (ICSID), 144–145 of International Court of Justice (ICJ), 130–134 of International Criminal Court (ICC), 135 of municipal courts, 148–159 nationality nexus, 149 opposing exercise of, 176–180 personal (See in personam jurisdiction) in personam (See in personam jurisdiction) protective nexus, 149 reasonableness requirement, 149 refusal to exercise, 176 in rem, 159 subject matter (See subject matter jurisdiction) territoriality nexus, 148 universality nexus, 149 jurisdictional rule of reason test, 199 jus cogens, 28 jus commune, 66, 67 Justinian, Emperor, 65 K Kant, Immanuel, 497 Kennedy Round, GATT, 364 Keynes, John Maynard, 308, 309 Khomeini,Ayatollah, 70 know-how, 523–524 Kohler, Josef, 497 Kyoto Protocol, 119–122 L labor laws and regulations, 446 Council of Europe worker protections, 468 of European Union, 462–463 extraterritorial application of, 483–486 foreign workers, regulation of, 479–482 human rights of workers, 456–462 International Labor Organization (ILO) (See International Labor Organization (ILO)) Organization for Economic Cooperation and Development (OECD) standards, 465 transnational labor unions, 468 labor unions, transnational, 468 laches, 103 Land Record Management and Information System Project (LRMIS), 327 law administrative, 68 civil, 65–68 common, 68–69 comparative, 65 constitutional, 68 extraterritorial application of (See extraterritorial application of laws) international (See international law) Islamic, 69–70 municipal (See municipal law) proving foreign, 180–181 public, 68 supremacy of, 68 lay days, 646 League of Nations, 40, 360 legal capacity, of international organizations (IGOs), 40 legal dispute, 144 letters of credit, 682–697 account party, 682, 696 advising, 689 amendments, 693 application for, 685–689 banks obligations, 692 beneficiary, 682, 697 confirming, 689, 691 defined, 682 failure to obtain, consequences of, 685–689 form of, 689 fraud, effect of, 693–696 irrevocable, 689, 690 law governing, 683–685 revocable, 685 rule of strict compliance for documentation for, 692 standby, 697 types of, 683–685 waiver, 693 lex mercatoria, 66, 659 liability for environmental damage, 124 of parties to bills and notes, 675–678 licensing of intellectual property, 185–186, 534–553 anticompetitive effects of licenses, regulation of, 534 cartels, 542 common origin doctrine, 538–539 compulsory licenses (See compulsory licenses) cross-licensing agreements, 542 exclusive licenses, 543–545 exhaustion-of-rights doctrine, 492, 536 expiration of licensing agreement, restrictions after, 552 expiration of statutory rights, restrictions after, 550 export restrictions, 539–542 field-of-use restrictions, 548–549 franchising (See franchises and franchising) grant-back provisions, 551 gray marketing, 539 license, 533 multiple licensing agreements, 542 no-challenge clauses, 547 noncompetition clauses, 546 package licensing, 552 patent pools, 542 www.downloadslide.net 726  Topical Index licensing of intellectual property (continued ) price-fixing clauses, 546 quality control clauses, 550–551 quantity restrictions, 548–549 research and development, restrictions on, 550 sales and distribution arrangements, 545 territorial restrictions, 536–539 tying clauses, 547–548 London Court of International Arbitration, 148 long arm statutes, 198 LRMIS See Land Record Management and Information System Project (LRMIS) M Maastricht Treaty, 337 Madrid Agreement for the Repression of False or Deceptive Indications of Sources of Goods, 531 mailbox rule, 582 maintenance of value clause, 305 manufacturing or processing plant franchise, 533–534 maquiladora program, 267 marine pollution, regulation of, 111–118 maritime insurance, 650–654 maritime liens, 647–650 market access, 437 master nationality, 96 material information, 291, 292 mediation, 128 Memorandum of Association, 274 memorandums of understanding (MOUs), 295 Meng, K’ung, 62 MERCOSUR See Southern Cone Common Market (MERCOSUR) Merger Rule, 38 Merger Treaty, 46 MFA See Multi-Fiber Arrangement (MFA) MFN See most-favored-nation (MFN) treatment MIGA See Multilateral Investment Guaranty Agency (MIGA) minimum contacts test, personal jurisdiction, 199 minority shareholders of subsidiaries, protections for, 276 Missile Technology Control Regime, 398 missing specifications remedy for breach of contract, 604 mitigate losses, duty to, 594 MNEs See multinational enterprises (MNEs) modification of investment agreements, 271–274 monetary systems international, 307–313 national (See national monetary systems) regional, 336–338 money, 301–307 See also currency choice of, 302–304 defined, 301, 665 in international transactions, 302 maintaining monetary value, 302 monetary systems (See monetary systems) official, 301 private, 301 value of, 301–302 money of account, 302 money of payment, 302 moral rights, copyrighted works, 498 mortgage note, 662 most significant relationship doctrine, 171–175 most-favored-nation (MFN) treatment Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), 498 GATT 1947 provisions, 363 GATT 1994 provisions, 382 General Agreement on Trade in Services (GATS) provisions, 435 MOUs See memorandums of understanding (MOUs) movement of workers, 468–487 foreign workers, regulation of, 479–482 passport requirements, 469 percentile legislation, 479 visas (See visas) Moving Boundaries Rule, 38 Multi-Fiber Arrangement (MFA), 425 Multilateral Investment Guaranty Agency (MIGA) (World Bank), 109 multilateral investment guaranty programs, 109 multilateral trade agreements, of WTO Agreement, 365, 398–426 agriculture, agreement on, 422 Anti-dumping Code, 409–410 customs valuation, 399 import-licensing procedures, 409 preshipment inspection (PSI), 400 regulatory agreements, 398–426 rules of origin, 425 safeguards, 421 sanitary and phytosanitary measures, 402 sectoral agreements, 398, 422 technical barriers to trade, 400–401 textiles and clothing, agreement on, 424–425 trade-related investment measures, 402 multilateral trade negotiations, GATT, 363–364 multilateral treaties, 25 multinational enterprises (MNEs), 62, 183–237 anti-suit injunctions, 208 blocking statutes, 207 branches, 184 bribery, 196 business forms, 186 (See business forms) common enterprise liablility, 231–232 corruption, 196 exporting, 184 home state regulation of, 196–231 host state regulation of, 231–236 importing, 184 insurance for (See insurance) international regulation of, 193–196 licensing and, 185–186 long arm statute, 198 multinational organization, 186–193 organization of (See organization of multinational enterprises) parent company, 186 product liability, 213 sharp practices, 224–225 subordinate structure, 192–193 subsidiaries, 184 unfair competition laws, 196–210 multiple licensing agreements, 542 municipal courts, 148–159 choice of law (See choice of law) immunity of states from jurisdiction of, 159–169 international law in, 29–30 jurisdiction of, 148–159 proving foreign law, 180–181 municipal law, 65–70 Anglo-American common law system, 68–69 as subservient to international law, 28 Islamic law system, 69–70 Romano-Germanic civil law system, 65–68 www.downloadslide.net Topical Index   727 N Nachfrist notice, 600, 604 NAFTA See North American Free Trade Agreement (NAFTA) national investment guaranty programs, 107–108 national monetary systems, 338–357 arbitrage, 346 bank deposits, 339 branch banking (See branch banking) central banks, 338 commercial banks, 339 Eurocurrency deposits, 342 foreign exchange contracts (See foreign exchange contracts) foreign exchange market, 343 interbank deposit market, 342 political agencies, 338 transfers of money, 346 national multinational enterprises, 189–190 National Securities Clearing Corporation (NSCC), 286 national standard of care, 88 national treatment rule Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), 529 Berne Convention, 529 GATT 1947, 363 GATT 1994, 380 General Agreement on Trade in Services (GATS), 435–436 Paris Convention, 531 nationality defined, 96 lack of, as objection to state responsibility, 96–97 master, 96 nationality nexus, for criminal jurisdiction, 148 nationalization See expropriation natural person, 143, 149 natural resources, protection of, 123–124 naturalists See cosmoplitans Nederlandsche Credietverzekering Maatsschappij, 107 negligence, 214 negotiable instruments See bills of exchange; promissory notes negotiation as consideration in sales contract interpretation, 575 defined, 128 negotiation of bills and notes, 669 converting order to bearer paper and vice versa, 667 endorsements (See endorsement of bills and notes) order paper, 666, 669 newness requirement, for patents, 507 NGOs See nongovernmental organizations (NGOs) no-challenge clauses, 547 nominalism, 301–302 Non-Proliferation Treaty Exporters’ Committee See Zangger Committee non-self-executing treaties, 29 noncompetition clauses, 546 nonconditional protection principle, 529 nondiscrimination guarantees, 269 nonexclusive rights, in intellectual property license, 543 nongovernmental organizations (NGOs), 61–62 nonimputable acts, 72–77 nonmultinational enterprises, 186, 189 nonprofit NGOs, 61–62 North American Free Trade Agreement (NAFTA), 61, 387 ICSID arbitrations, 144–148 investor protection provisions, 245 trade in services, provisions governing, 444 notes See promissory notes NSCC See National Securities Clearing Corporation (NSCC) NSG See Nuclear Suppliers Group (NSG) nuclear materials, export controls related to, 397 Nuclear Suppliers Group (NSG), 397–398 O OAS See Organization of American States (OAS) objections to state responsibility complaints, 96–103 Calvo clauses, effect of, 97 dirty hands, 103 failure to exhaust remedies, 97–98 genuine link, lack of, 97 laches, 103 nationality, lack of, 96–97 standing, lack of, 96 waiver of rights, 97 objective intent approach to sales contract interpretation, 575 objective territoriality jurisdiction, 24 OECD See Organization for Economic Cooperation and Development (OECD) offer, 580 defined, 580 definiteness requirement, 580 effectiveness of, 582 firm offers, 582 mailbox rule, 582 pro forma invoice as example of, 580, 581 rejection of, 584 revocation of, 582 specific offerees, requirement for, 581 official money, 301 OMAs See orderly marketing arrangements (OMAs) OPEC See Organization of Petroleum Exporting Countries (OPEC) operational reviews, of foreign-owned enterprises, 270 OPIC See Overseas Private investment Corporation (OPIC) opinio juris sive necessitatis, 27 option contracts, 346 optional clause jurisdiction, 130–131 order bill of lading, 632 order paper, 666, 669 orderly marketing arrangements (OMAs), 421 Organization for Economic Cooperation and Development (OECD), 61 employment standards, 465 Guidelines for Multinational Enterprises, 465–466 securities regulations, 294 Organization of American States (OAS), 58, 389 organization of multinational enterprises branches, 184 parent company, 186 subsidiaries (See subsidiaries) Organization of Petroleum Exporting Countries (OPEC), 61 organizational documents, disclosure of, 274 Overseas Private Investment Corporation (OPIC), 107–109, 698 currency convertibility guarantees, 108 expropriation coverage, 108 political violence, insurance for losses due to, 108 www.downloadslide.net 728  Topical Index P package licensing, 552 Panama canal, 34 Pandectists, 67, 497 par value system, 313 Paris Convention See International Convention for the Protection of Industrial Property (Paris Convention) parol evidence rule, 575 particular average, in maritime industry, 654 partnerships defined, 186 passports, 469 Patent Cooperation Treaty, 532 patent pools, 542 patents, 504–512 of addition, 506 applications for, 510–511 capable of industrial application requirement, 506–507 compulsory licenses, 553–554 confirmation, 506 defined, 504 design, 506 duration of, 512 excluded inventions, 511 inventive step, 507 newness requirement, 507 petty, 506 plant, 506 precautionary, 506 private property justification for, 504–505 public-interest justification for, 505 publication requirement, 510–511 qualifications review, 510–511 scope of, 512 utility, 506 payment of price, sales contracts, 591–594 PCIJ See Permanent Court of International Justice (PCIJ) pecuniary rights, copyrights, 491 pepoudrous courts, 66 percentile legislation, 479 performance rights, copyrighted works, 493 Permanent Court of International Justice (PCIJ), 445–446 permanent visas, 475–476 persistent objection, to custom, 27–28 personal jurisdiction, 143 personalists, 497 petty patents, 506 place of payment, in international transactions, 302 plain meaning rule, 573 plant patents, 506 Plurilateral Trade Agreements, of WTO Agreement, 365 political violence, insurance for losses due to, 108 pollution, regulation of, 111–123 air pollution, 118–122 marine pollution, 111–118 Portalis, Jean, 67 Positivists view of international law, 22, 72 Poverty Reduction and Growth Facility, 324 practices, in sales contract interpretation, 575 precautionary approach to environmental protection, 110, 119 precautionary patents, 506 precedent, 68 preempt, 570 presentment, 676 preshipment inspection (PSI), 400 price reduction remedy, breach of contract, 602 price-fixing clauses, 546 primary commodities, 387 private insurers, 107 private international law, 21, 22 private money, 301 privity, 214, 696 product liability laws, 210, 213–224 product regulations, 122–123 promissory notes, 661–664 acquired in bad faith, 675 acquired through gross negligence, 675 assignment, 666 banks’ role in collecting and paying, 678–681 certificates of deposit (CDs), 339, 343, 662 collateral note, 662 definite sum or monetary unit, requirement for, 665 endorsements (See endorsement of bills and notes) examples of, 662 holder, 675 holder in due course (HDC), 675 installment note, 662 liabilities of parties to, 675–678 liability on the instrument, 677 limitations on excuses for not paying, 675 maker, 661 mortgage note, 662 negotiability of, 664–666 negotiation (See negotiation of bills and notes) parties to, 661 payee, 661 signature requirements, 666 time of payment, requirements regarding, 665 unconditional promise to pay, requirement for, 662–663 warranty liability, 678 property artistic, 490 cultural, export controls for protection of, 395–396 industrial (See industrial property) intellectual (See intellectual property) succession of states and, 38 prospectus, 284 protection independent of protection in the country of origin principle, 529 protectionism, 360–362 protective nexus, for criminal jurisdiction, 149 PSI See preshipment inspection (PSI) public international law, 21, 22 public law, 68 publication requirement, for patents, 510–511 Q qualified endorsements, 669 quality control clauses, 550–551 quantity restrictions, on intellectual property licenses, 548–549 quotas, IMF, 310 R recognition constitutive doctrine, 33 declaratory doctrine, 33 Estrada doctrine, 34 of intergovernmental organizations (IGOs), 40 of states or governments, 33–38 recommendations, by ILO, 447 red herring prospectus, 285 regional monetary systems, 336–338 registered securities, 282 www.downloadslide.net Topical Index   729 registration of securities, 285–286 of trademarks, 516 relief, 103 compensatory damages, 103 restitution in kind, 103 satisfaction, 103 remedies See also specific remedy for breach of contract (See breach of contract, remedies for) damages (See damages) failure to exhaust, 97–98 in state responsibility cases, 103–104 under Agreement on Subsidies and Countervailing Measures (SCM Agreement), 415 repatriation guarantees, 269 reporting requirements for ILO member states, 448 for subsidiaries, 274–275 representative office, 192 reproduction rights, copyrighted works, 491–494 res, 647 reserve currencies, 301 reserve tranche, 323 restitution in kind, 103 restrictive endorsements, 669 restrictive sovereign immunity, 159 revocable letters of credit, 685 revocation of offer, 582 right of establishment, EU, 442 right of priority, 531 Rio Conference See United Nations Conference on the Environment and Development (UNCED) Rio Declaration, 110 risk transfer, sales contracts, 594–599 Robinson-Patman Act, 197 Roman Catholic Church, 65 Romano-Germanic civil law system, 65–68 Rome Convention See International Convention for the Protection of Performers, Producers of Phonograms, and Broadcasting Organizations (Rome Convention) Rome Statute, 135–136 Roosevelt, Eleanor, 455, 456, 459 Roosevelt, Franklin D., 361, 455 Root, Elihu, 72 rule of reason, 196, 535 rule of reason determinations, restrictive trade practices, 535, 542 rule of reciprocity, 131 rule of strict compliance, as to documentation for letters of credit, 692 rules of origin, 425 S safeguards Agreement on, 421 under GATT 1994, 388 sales, 559–608 contracts (See sales contracts) defined, 567 sales and distribution arrangements, 545 sales contracts See also Convention on Contracts for the International Sale of Goods (CISG) breach of contract, remedies for (See breach of contract, remedies for) buyer’s obligations, 591–594 conformity of goods (See conformity of goods to contract) delivery of goods (See delivery of goods, sales contracts) dirty hands, 606–607 force majeure, 606–607 form of, 579–580 formation of, 580–587 fundamental breach of, 588 interpretation of (See interpretation of sales contracts) maintenance of value clause, 305 nonperformance, excuses for, 606–607 offer (See offer) passage of risk, 594–599 payment of price, 591–594 remedies for breach of (See breach of contract, remedies for) seller’s obligations, 589–590 trade terms (See trade terms) turning over of documents, by seller, 589 writing requirement, 579 sanctions, by United Nations, 398 sanitary and phytosanitary measures, 402 Satellite Transmission Convention See Convention Relating to the Distribution of Program-Carrying Signals Transmitted by Satellite (Satellite Transmission Convention) satisfaction, 103 Savary Code of 1673, 659 Savigny, Friedrich Karl von, 67 Schedules of Specific Commitments, GATS, 438–441 SDR See Special Drawing Right (SDR) sea, carriage of goods by, 622–645 bill of lading (See bills of lading) charterparties (See charterparties) commercial invoice, 625 common carrier, 622 conference lines, 623 dock receipt, 627 independent lines, 623 maritime insurance (See maritime insurance) packing list, 626 tramp vessels, 623 Second Amendment system, IMF, 313–314 Secretariat, United Nations, 41–42 sectoral limitations, on foreign investment closed sectors, 252 foreign priority sectors, 253 restricted sectors, 252 securities, 282–283 bearer, 282 bonds, 282 certificated, 283 defined, 282 registered, 282 regulation of (See securities regulations) stock (See stock) transfers of, 283, 293 uncertificated, 283 Securities and Exchange Act of 1934, 291, 292, 295 securities regulations, 282–294, 295 clearance and settlement (See clearance and settlement of securities) enforcement internationally, 294–298 exchanges, 285, 288 extraterritorial application of U.S laws, 295 insider trading (See insider trading) issuance of securities, 285–286 memorandums of understanding (MOUs), 295 OECD Code of Liberalization of Capital Movements, 294 registration requirements, 285–286 trading in securities, 283 Security Council, United Nations, 41 security exceptions to GATT 1994, 389 to General Agreement on Trade in Services (GATS), 435–436 security exchange, 283 www.downloadslide.net 730  Topical Index self-executing treaties, 29 self-judging reservations, 131 service marks, 512 service sectors, 430–431 Services Directive, EU, 442 Shari’a, 69–70 sharp practices, 224–225 Sherman Antitrust Act, 196, 197, 535, 542 shipment contracts, 598 sight bills, 661 soft currencies, 343 sole rights, in intellectual property license, 543 South-South Preferences, 380 Southern Cone Common Market (MERCOSUR), 61 sovereign immunity, 159–167 absolute, 159 defined, 159 restrictive, 159 waiver of, 160 Special Drawing Right (SDR), 301, 305–307 special endorsements, 666 specialized IGOs, 59–61 specific performance, 588, 600, 604 spread eagles, 346 SPS Agreement See Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) stabilization clauses, 270 standard of care, 88–96 denial of justice, 93–96 expropriation, 89–93 international standard, 88–89 national standard, 88 standards, TBT Agreement requirements, 400 standby arrangements, 324 standby letters of credit, 697 standing, lack of, 96 stare decisis, 134 start-up standards, for foreign investors, 270 state immunity See sovereign immunity state practice, 25 state responsibility, 62–65, 72–88 defined, 72 environmental protection (See environmental protection) fault and causation, 87 human rights compared, 62–65 imputable conduct, 72–77 insurance for MNEs (See insurance) nonimputable acts, 72–77 objections to claims of (See objections to state responsibility complaints) relief available, 103 standard of care (See standard of care) terrorism and, 77–78 state terrorism, 77–78 states, 32–39 defined, 32 dependent, 32–33 inchoate, 32 independent, 32 recognition of, 33–38 territorial sovereignty (See territorial sovereignty) statutory copyright license, 554, 557 stock See also securities defined, 282 regulatory schemes (See securities regulations) Stockholm Conference on the Human Environment, 109 Stockholm Convention See Convention Establishing World Intellectual Property Organization (Stockholm Conventon) Stockholm Declaration, 109 straddles, 346 straight bill of lading, 632 strict liability theory of product liability, 215 subject matter jurisdiction ICSID arbitration tribunals, 145 subjective intent approach to sales contract interpretation, 575 subrogation rights, of OPIC, 108 subsidiaries, 184, 192 annual reporting requirements, 274–276 creditor protections, 276–277 disclosure obligations, 274–276 minority shareholder protections, 276 organizational documents, disclosure of, 274 protection of, 274–281 tort victims of, protections for, 277 subsidies 1979 Subsidies Code, 414–415 Agreement on (See Agreement on Subsidies and Countervailing Measures (SCM Agreement)) Agreement on Agriculture provisions for reduction of agricultural export subsidies, 422 defined, 414–415 examples of, 415 U.S.-Chinese disagreement on, 420 subzones, 263 succession of states, 38 Suez canal, 34 supplemental reserve facility, 324 supranational powers, of EU, 47–53 supremacy principle, 47 supremacy, of the law, 68 suspension of performance remedy for breach of contract, 604–605 T takeovers, 292–294 City Code on Takeovers and Mergers, 294 cross-ownership of shares restricting, 293 restrictions on transfers of shares, effect of, 293 voting restrictions on shares inhibiting, 293 Williams Act, 293–294 Tariff Truce Conference, 360–361 tariffs, 385 Agreement on Agriculture provisions, 422 bound tariff rate, 385 Harmonized System (HS), 386 TBT Agreement See Agreement on Technical Barriers to Trade (TBT Agreement) technical barriers to trade, 400–401 technical regulations, 401 temporary visas, 472–475 tender offer, 293 territorial basis, for jurisdiction, 24 territorial restrictions, on intellectual property licenses, 536–539 territorial sovereignty changes in, 38–39 Clean Slate Doctrine, 38 defined, 34 Merger Rule, 38 Moving Boundaries Rule, 38 territoriality nexus, for criminal jurisdiction, 148 terrorism, 77–78 characteristics of, 77–78 counterterrorism conventions, 77–78 defined, 77 textiles and clothing, trade agreement on, 425 time bills, 661 time charterparties, 646 tippee, 291 www.downloadslide.net Topical Index   731 tipper, 291 Tokyo Round, GATT, 364 tombstone advertisement, 285 tort laws, 210 protections for tort victims of subsidiaries, 277 toxic waste, regulation of, 123 trade financing (See financing) in goods (See trade in goods) in services (See trade in services) trade acceptances, 659, 661, 662 trade in goods, 358–428 Bretton Woods system, 362 General Agreement on Tariffs and Trade (See General Agreement on Tariffs and Trade (GATT 1947); General Agreement on Tariffs and Trade (GATT 1994)) multilateral trade agreements (See multilateral trade agreements, of WTO Agreement) protectionism, 361 sales contracts (See sales contracts) transportation of goods (See transportation of goods) World Trade Organization (WTO) (See World Trade Organization (WTO)) trade in services, 429–488 European Union law, 441–444 General Agreement on (See General Agreement on Trade in Services (GATS)) North American Free Trade Agreement (NAFTA) law, 444–445 trade name, 512 Trade Policy Review Board,WTO, 376 trade secrets, 523–524 trade terms, 609–620 cost and freight (CFR), 616 cost, insurance, and freight (CIF), 616 defined, 609 delivered ex ship (DES), 614 ex works (EXW), 620 free alongside ship (FAS), 616 free carrier (FCA), 620 free on board (FOB), 615–616 free, defined, 615 Incoterms, 595, 610, 614 trade-related investment measures, 402 Trademark Law Treaty, 531 trademarks, 490, 512–523 acquiring, 515–516 certification marks, 512 collective marks, 512 common origin doctrine, 538–539 distinctiveness of, 516 functions of, 512 refusal of registration, 521–522 registration of, 516–521 review of registration, 522 service marks, 512 term of, 522 true, 512 usage requirements, 523 tragedy of the commons, 118 tramp vessels, 623 tranche, 323 transaction value method of customs valuation, 399 transformation, doctrine of, 29 transparency provisions Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), 534 GATT 1947, 363 GATT 1994, 386 General Agreement on Trade in Services (GATS), 435 regional integration, 386–387 transportation of goods, 609–656 by sea (See sea, carriage of goods by) freight forwarders, 620 inland carriage, 621–622 liablility limits, 640–643 third-party rights, 644–645 time limitations, 643–644 trade terms (See trade terms) transshipment contracts, 599 travaux préparatoires, 573 treaties, 25–26 See also specific treaties bilateral, 25 changes in territorial sovereignty and, 38–39 constitutional, 29 defined, 25 dispositive, 38 executive agreements, 29 multilateral, 25 non-self-executing, 29 self-executing, 29 Treaty Establishing the European Community (EC Treaty) See European Community Treaty (EC Treaty) Treaty of Amsterdam, 46 Treaty of Nice, 46 Treaty on Intellectual Property in Respect of Integrated Circuits (Washington Treaty), 531–532 Treaty on the Non-Proliferation of Nuclear Weapons, 123, 397–398 TRIMs Agreement See Agreement on Trade-Related Investment Measures (TRIMs Agreement) TRIPS See Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) TRIPS Council See Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council) true conflicts case, choice of law in, 175 Truman, Harry, 362 Trusteeship Council, United Nations, 42 Twelve Tables, 65 tying clauses, 547–548 U UCC See Uniform Commercial Code (UCC) UCP See Uniform Customs and Practices for Documentary Credits (UCP) UEMOA See West African Economic and Monetary Union (UEMOA) ULB See Geneva Conventions on the Unification of the Law Relating to Bills of Exchange (ULB) ULC See Geneva Conventions on Unification of the Law Relating to Checks (ULC) UMCA See Central American Monetary Union (UMCA) UNCED See United Nations Conference on the Environment and Development (UNCED) uncertificated securities, 283 UNCITRAL See United Nations Commission on International Trade Law (UNCITRAL) UNCLOS See United Nations Convention on the Law of the Sea (UNCLOS) UNCTAD See United Nations Conference on Trade and Development (UNCTAD) UNEP See United Nations Environment Program (UNEP) UNESCO See United Nations Education, Scientific and Cultural Organization (UNESCO) www.downloadslide.net 732  Topical Index unfair competition laws anticompetitive behavior laws, EU (See anticompetitive behavior laws, EU) antitrust laws (See antitrust laws, U.S.) UNFCCC See United Nations Framework Convention on Climate Change (UNFCCC) UNIDROIT See International Institute for the Unification of Private Law (UNIDROIT) Uniform Commercial Code (UCC), 659 Uniform Customs and Practices for Documentary Credits (UCP), 683–685 Uniform Domain Name Dispute Resolution Policy, 526 Uniform Negotiable Instruments Law (UNIL), 659 Uniform Rules for Collections, 660 UNIL See Uniform Negotiable Instruments Law (UNIL) United Kingdom insider trading regulations, 287, 291–292 passport requirements, 469 takeover regulations, 292–294 United Nations, 40, 41–42, 361 Charter, 40, 41 Economic and Social Council (ECOSOC), 41 General Assembly, 41 goals of, 41 human rights, 455–456 International Court of Justice (See International Court of Justice (ICJ)) organs of, 41–42 sanctions to maintain international peace, 398 Secretariat, 41–42 Security Council, 41 specialized agencies of, exhibit listing, 43 Trusteeship Council, 42 United Nations Ad Hoc Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting, 275 United Nations Climate Change Conference, 121 United Nations Commission on International Trade Law (UNCITRAL), 148 United Nations Commission on Transnational Corporations, 62 United Nations Conference on the Environment and Development (UNCED), 110–111, 123–124 Agenda 41, 110 Convention on Biological Diversity, 124 Rio Declaration, 110, 124 UNFCCC, 118 United Nations Conference on Trade and Development (UNCTAD), 240, 388 United Nations Conference on Trade and Employment, 362 United Nations Convention on Contracts for the International Sale of Goods See Convention on Contracts for the International Sale of Goods (CISG) United Nations Convention on the Law of the Sea (UNCLOS), 111–112 United Nations Education, Scientific and Cultural Organization (UNESCO), 395–396 United Nations Environment Program (UNEP), 110 United Nations Framework Convention on Climate Change (UNFCCC), 118–119 Conference of the Parties, 119–120 Kyoto Protocol, 119–122 objectives of, 119 United Nations Monetary and Financial Conference See Bretton Woods Conference United Nations System, 42 United Nations World Tourism Organization (UNWTO), 43 United States Alien Tort Claims Act (See Alien Tort Claims Act (ATCA)) antitrust laws (See antitrust laws) insider trading regulations, 291 passport requirements, 469 takeover regulations, 292–294 treaty negotiation and ratification, 29 visa regulations, 474 Universal Declaration of Human Rights, 455–456 legal effect of, 456–459 movement of workers, 468–469 rights listed in, 456 universality nexus, for criminal jurisdiction, 149 upper credit tranches, 323 Uruguay Round, GATT, 359, 364–365, 367 usage requirements, for trademarks, 523 usages, in sales contract interpretation, 575–579 usus, 27 utility patents, 506 V value, of money, 301–307 VERs See voluntary export restraints (VERs) vertical competition agreements, 542 vested rights doctrine, 171 Vienna Convention on the Law of Treaties, 26, 28 visas, 469–479 compliance with, 476 permanent, 475–476 temporary, 472–475 U.S regulations, 474 waiver program, 474 voluntary export restraints (VERs), 421 von Gierke, Otto, 497 voyage charterparties, 646 W waiver, 375 of conformity of goods, 590 letters of credit, 693 of sovereign immunity, 160 Warsaw Convention (Convention for the Unification of Certain Rules Relating to International Carriage by Air), 654 Washington Convention See Convention on the Settlement of Investment Disputes between States and Nationals of Other States Washington Treaty (Treaty on Intellectual Property in Respect of Integrated Circuits), 531 Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, 396 West African Economic and Monetary Union (UEMOA), 336 White, Harry Dexter, 308 William the Conqueror, 68 Williams Act, 293–294 WIPO See World Intellectual Property Organization (WIPO) Wolfowitz, Paul, 327 www.downloadslide.net Topical Index   733 workers labor laws (See labor laws and regulations) labor unions, transnational, 468 movement of (See movement of workers) World Bank, 62, 140, 325, 361 cooperation with IMF, 332–333 corruption and fraud at, 326 Global Environment Facility (GEF), 325 IMF compared and contrasted, 327–333 International Development Agency (IDA), 325 International Finance Corporation (IFC), 325 operations of, 330–331 purposes of, 328–329 recipients of funding, 330 size and structure, 329–330 sources of funding, 330 World Charter for Nature, 123 World Economic Outlook, 309 World Intellectual Property Organization (WIPO), 40, 524–526 Arbitration and Mediation Center, 525 Copyright Treaty, 530 ICANN Uniform Domain Name Dispute Resolution, 526 World Monetary and Economic Conference, 360–361 World Trade Organization (WTO), 42, 363, 367 Agreement, 365–367 Appellate Body, 137–138, 420 consultation, 136–137 Council for Trade in Goods, 369, 371 decision making by consensus, 372 Dispute Settlement Body (DSB), 136, 375, 416 Dispute Settlement Panel, 136–137 dispute settlement procedures, 136–140 enforcement of reports adopted by DSB, 137 establishment of, 365–367 functions of, 366 General Council, 369–371 membership of, 367–369 Ministerial Conference, 371 multilateral trade agreements (See multilateral trade agreements, of WTO Agreement) plurilateral trade agreements, 365 precedential effect of dispute settlement rulings, 137–140 structure of, 369–371 third party participation, 136–137 Understanding on Rules and Procedures Governing the Settlement of Disputes (Dispute Settlement Understanding), 136–140 waivers, 375 World Wildlife Federation, report on bluefin tuna fishery, 117 writs, 68 WTO See World Trade Organization (WTO) Z Zangger Committee, 397 .. .International Business Law Text, Cases, and Readings Sixth Edition This page intentionally left blank International Business Law Text, Cases, and Readings Sixth Edition Ray August (1944–2004)... edition, entitled International Business Law: Text, Cases, and Readings, 6th edition, ISBN 978-0-132-71897-4, by Ray August, with revisions by Don Mayer and Michael Bixby, published by Pearson Education... University and his LL.M in International and Comparative Law from Georgetown University Law Center 20 Introduction to International and Comparative Law Chapter Outline A What Is International Law?