Summary: International Business Law

Read the summary and the most important questions on International Business law

• 1 Relevance of international business law

• Why is international business law important?

  It is important, because it relates to all legal questions that are raised when trading across boarders. Therefore, it is important to know national law, European law and international law when doing business across boarders as these always have to be considered by businesses.

• 1.1 Legal questions

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• How do you determine the competent court?

  Multiple things have to be taken into consideration: 
  

  • Are the two countries members of the EU? 
  • European law will apply 
  • One of the states are from outside of the EU 
  • Did they agree on any convention? If yes, this convention applies 
  • Members of the CISG --> This law applies 
  • Place of performance --> Where were the goods considered delivered? (Incoterms) 
  • Parties have to agree on the INCOTERMS beforehand 

• What does the Lugano Convention say in regards to jurisdiction and enforcement of judgements in civil and commercial matters? (LugÜ II, Art. 5 no. 1)

  The article 5, no. 1 of the Lugano Convention states that a  person that has their home in a state bound by the convention can be sued by another state that is also bound by the convention in matters of a contract. This matter in case of conflicts in regards to e.g. the sale of goods where the goods were or should have been delivered.

• What does the LugÜ II art. 5 no. 1 state on place of performance in matters relating to contract? What often determines the place of performance in cross boarder trading?

  The convention states that the place of performance is in the State where the goods were delivered or should have been delivered unless the parties shave agreed otherwise. The INCOTERMS determines in most cases the place of performance in cross boarder trading as they state when the responsibility and thereby "delivery" goes to the other party.

• What law is applicable above the law of a state in case two cross boarder countries have agreed enacted and ratified it?

  The CISG is applicable above e.g. German law and therefore has to be applied prior to the German law.

• 2 What to differentiate in international business law?

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• 2.1 Legal fields

• What main areas does the private law cover and who are concerned by this?

  Private law concerns individuals, businesses and companies. The main areas are contract law, tort law, property law, succession law and family law.

• Who does public law concern and what area does it cover?

  Public law concerns the general public or state. Some of the areas it covers are the areas administrative law, constitutional law, criminal law, municipal law, criminal law and international law.

• How does private law and public law interfere?

  Private law and public law are not strictly divided as some private laws depend on public laws, e.g. Construction of a production plant, and sometimes public courts have to decide in disputes between companies or individuals, which comes from private law. States do also have mandatory laws which cannot be waived by the parties even if they intend to do so within the contract.

• What does section 242 in the German civil code say about the interrelation between private law and public law?

  Section 242 in the German Civil Code states the principle of good faith, meaning that the fundamental rights in the German constitutional law have to be taken into consideration, thereby applying public law to private law.

• 2.2 Levels of law

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• What is the European Union law? What is their primary and secondary laws?

  Laws that democratically have been ratified within the European Union by its members. The treaties of the European law are the "primary laws". Everything else revolves around the treaties and are called "second laws". The second laws include treaties and objectives.