International

Legal
Agreements
Learning Objectives:

Describe the legal systems upon which international

law is base

Explain Product Liability

Understand laws and international trade agreements

that protect property rights

Describe when an agreement has all the components of

a contract.

Understand and discuss Litigation process

The Legal System which the
international law is based
Legal system
 It is a country's law regulates business practices,
defines business policies, rights and obligations
involved in business transactions. The government
of a country defines the legal framework within
which firms do businesses. The purposes
and functions of business law include maintaining
order, protecting rights and liberties, establishing
standards, and resolving disputes when it comes
to businesses and their interactions with individuals,
government agencies, and other businesses.
International law
 International law is the set of rules, agreements
and treaties that are binding between countries.
When sovereign states enter into agreements that
are binding and enforceable, it’s called international
law. Countries come together to make binding rules
that they believe benefit their citizens. International
laws promote peace, justice, common interests and
trade. People involved in international business are
guided by the principles of international law as well
as by the trade agreement.
The main legal system around the world are:
Civil law
Common law
• It is also called code
law, it is a complete Statutory law
•It is also referred as
set of rules enacted
as a single written case law. It is a legal
•This law is enacted
system or code. system that relies on
the accumulation of by the body of
When a lawmakers. It is
government enacts decision made in
prior cases. English enacted to add to or
a civil code, it change existing
attempts to write common laws grew
out of the laws and to define
down all of the laws laws for new
and the rights that deterioration of the
feudal system. situations that
govern every aspectClick icon to add picture
arise.
of the society.
Product Liability
Product Liability

 Is a specific responsibility that both

manufacturers and sellers have for the
safety of their products.

 If a manufacturer does not use “due care”

in designing and making a product, it
may be guilty of either intentional or
negligent harmful action.
Defects that create liability:

1. Design defects
2. Manufacturing defects
3. defects in marketing
Negligence

Which is the failure of a responsible party to follow

standards of due care, can also be difficult to prove.

Strict Liability
Imposes responsibility on a manufacturer or
seller for intentionally or unintentionally
causing injury to another.
Six Conditions to be met in order for the manufacturer
to be held liable for damages under strict liability laws:

1.The product was sold in a defective condition.

2.The seller is in the business of routinely selling the
product.
3.The product reached the user without having been
substantially changed.
4.The product was unreasonably dangerous to the user.
5.The user of the product or a bystander suffered harm
or injury by using the product.
6.The defect was the primary cause of the injury.
Laws and International Trade
Agreements that protect Property
Rights
 International trade law is the set of laws and agreements
that govern commerce between countries. International
trade laws create the rules that countries and businesses
must follow in order to do business across borders.
Lawyers who work in the field help create international
agreements. Generally, international trade law includes the
rules and customs governing trade between countries.
International trade lawyers may focus on applying
domestic laws to international trade, and applying treaty-
based international law governing trade. And it helps to
protect our property rights against other countries who
established their entities in our country
This report provides background on intellectual property rights
(IPR) and discusses the role of U.S. international trade policy in
enhancing IPR protection and enforcement abroad. IPR are legal
rights granted by governments to encourage innovation and
creative output by ensuring that creators reap the benefits of their
inventions or works. They may take forms such as patents, trade
secrets, copyrights, trademarks, or geographical indications (GIs).
Congress has constitutional responsibility for legislating and
overseeing IPR and international trade policy. Responsibility for
developing IPR policy, engaging in IPR-related international
negotiations, and enforcing IPR laws cuts across multiple U.S.
government agencies.
The protection and enforcement of IPR is an
important and long-standing component of U.S.
international trade policy and U.S. trade negotiating
objectives. U.S. trade policy also seeks to address
new and evolving issues in the IPR landscape
related to the growing role of emerging markets in
the global marketplace and the development of new
technologies, including related to digital trade.
Agreement
and
Contract
What is contract?
A contract is a legally enforceable agreement between two or
more persons either to do or not to do a certain thing or things. A
contract encourages competent parties to abide by an agreed-
upon set of items. Contracts are the basis for almost all business
arrangements.
Contracts can be either implied or express. An implied contract
is one that is not explicitly agreed to by the parties but is
inferred either from the parties’ conduct or from the law. An
express contract is one whose terms are openly declared, either
orally or in writing. Businesses nearly always enter into express
contracts because it is wise for parties to agree to and set forth
very clearly what is expected of everyone, However, both
implied and express contracts are binding on both parties, and
neither party can withdraw without the agreement of the other
party.
COMPONENTS OF A CONTRACT

For a contract to be considered valid, it must

contain the following four essential components.
 Capacity all parties must be competent, of legal age,
and mentally capable.
 Mutual agreement one party offers valid terms and
the other party accepts.
 Consideration something of value must be given by
both parties.
 Legal purpose the terms of the contract must be in
agreement with the law.
For a contract to be enforceable, the contract
must be valid—that is, it must meet all four of
the conditions. Either party can enforce a valid
contract. A contract that fails to meet one of
those four requirements is unenforceable by
either party. Businesspeople in the international
arena frequently enter into contracts with
representatives of companies from other
countries and with the governments of other
countries. Such agreements are most often made
according to the rules of international law.
TREATIES AND TRADE
AGREEMENTS

Treaties and trade agreements between countries

are examples of contracts that have a tremendous
effect on global business activities. These
agreements impose a degree of stability and
uniformity for trade relations where members
have different cultures and customs. Since
contracts are the basis of business relationships,
many trade agreements provide guidelines for the
enforcement of contracts.
Some of the most far-reaching international trade
agreements in force today include the following.

•The World Trade Organization with more than 140 member

countries

• The European Union which allows the free flow of goods,

services, labor, and capital between the member countries of the
EU

•The North American Free Trade Agreement, designed to ensure

open markets and fair competition between companies in Canada,
Mexico, and the United States
Litigation Process
Introduction
Throughout the world, mostly legal disputes are resolved
without the parties ever going to the court between
individuals, businesses, and nations. Due to the time and
expenses involved in law suits, the concern about bad
publicity and outcome and the desire to maintain good
relationship with the other party are considered.
 
There are several ways to resolve international legal
disputes. The two major means of alternate dispute
settlement used by business in the international arena
without court action are mediation and arbitration.
What is mediation?
Mediation is a dispute resolution method that
makes use of a neutral third party or a mediator.

A mediator attempts to reconcile the viewpoints

of the disputing parties.
A mediator is involved with the substance of the
dispute and makes suggestions and proposals.
Therefore the mediator is often an attorney or an
expert in the disputed matter.
What is Arbitration?

Arbitration is a method of conflict resolution

that uses a neutral third party to make a binding
decision. Unlike the mediator, an arbitrator’s
decision is legal and binding on both parties.

An arbitrator acts as a private judge at a

location of the disputing parties’ choice and
establishes procedures and rules of evidence.
What is the difference and similarities
of Mediation and Arbitration?

Similarities of Mediation and Arbitration are that:

Forms of alternative dispute resolution

They are or both can settle a dispute without the

action of court or without having to go to the court.

It both need neutral third party

Differences of Mediation and Arbitration are that:
In Mediation
- The mediator attempts to reconcile both parties by making
suggestion or proposal. But mediators cannot make a decision
binding, ONLY both parties could bind it if they are willing to
compromise.
In Arbitration
- The arbitrator decision is legal and binding to both
parties.
The two parties could resort to Litigation when they are unable
to or unwilling to resolve their differences through mediation or
arbitration or through their compromises or own agreements.
What is Litigation?
Litigation is a lawsuit brought about to
enforce rights of a person or an organization or
to seek remedy to the violation of their rights.

Litigation involves many complex procedural

rules. These rules vary from country to country
and even among courts within a given a
country.
Litigation Process
The Incident
Selecting an Attorney
Pre-Filing Fact Gathering
Filing the Complaint
Formal Discovery
Settlement Discussions or Mediation
Trial
Appeals
The International Court of Justice

the International Court of Justice was

establish in 1964 by the Charter of the
United Nations.

- it sits in the Hague in the Netherlands

What is an International
Court of Justice?
Is a court that settles disputes between
nations when both nations request that it
do so and also advises the United
Nations on matters on international law.

The decision of the court is binding for

all parties.
What is the importance of the
International Court Justice to the
world of International Business?

It provides guidelines for acceptable

ways of doing business around the world.
SUMMARY:
The main legal systems of the world are civil law, common law, and statutory law.
Manufacturers and sellers are responsible for the safety of their products. Negligence
and intent to cause harm are difficult to prove, such that the principle of strict liability
apply in many countries.
Property right are protected by through government actions such as trademarks,
copyrights, and patents.
Contracts are the basis for all business arrangements.
A valid contract must have four (4) components capacity, mutual agreement,
consideration, and legal purpose.
International disputes may be resolved without the court intervention through
Mediation or Arbitration.
Litigation is a court action used to resolve business global disputes.
The International Court of Justice settles legal disputes between nations when both
nations request that it to do so.
The International Court of Justice also advises the United Nations on matters on
International law.