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Business Law - Sources of Law

4 important questions on Business Law - Sources of Law

Sources of Law: National Law:

o In Germany: BGB; HGB; ZPO
o In case companies intend to establish business in foreign countries, it is recommended to familiarize with the respective national law in order to avoid pitfalls and negative surprises.
o Besides it is common in international business contracts to implement a choice of law clause into the latter.

Sources of Law: European Law

o With regard to European law, in particular regulations and directives are relevant for international business because they represent a harmonized law regime, which has to be taken into account by companies doing cross-border business.
o The most relevant regulations for cross-border business in the EU are inter alia:
§ Rome I
§ Rome II
§ Brussels I bis: Jurisdiction and recognition and enforcement of judgements in civil and commercial matters

Sources of Law: International Law

o Convention of Vienna CISG
o New York Convention, 1985
o Bilateral contracts (ex. Convention of Lugano)
o EU also can conduct bilateral agreements for countries being involved

Sources of Law: Court Decisions

o Entrepreneurs need to take note of decisions of the Court of Justice of the European as well as decisions of national courts, ex. German Federal Court of Justice (BGH).
o This is necessary because the ongoing development of the case law often has a serious and sometimes detrimental impact on business relationships.

The question on the page originate from the summary of the following study material:

Introduction to International Business Law

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