International Legal Environment of Business
Chapter 9 in the Book
Definition:
Dimensions of International Environment of Business
Methods of Engaging in International Business
Risks of Engaging in International Business
Global Dispute Resolution
Dimensions
- Political Dimension
- Economic Dimension
- Cultural Dimension
- Legal Dimension
Methods of Engaging in International Business
- Trade
- Licensing & Franchising
- Foreign Direct Investment
Risks of Engaging in International Business
- Expropriation of Private Property
- Sovereign Immunity Doctrine
- Export &Import Control
- Currency Control
Global Dispute Resolution
- International bodies
- Arbitration
- Litigation
Alternative Tools of Dispute resolution
Chapter 4 in the book
Definition:
Resolving Legal disputes by using methods other then litigation or methods that are short of litigation
Some Common ADR methods
Negotiation & Settlement
An Alternative dispute resolution method in which the disputant parties come together informally to try to resolve their difference.
Arbitration
A dispute resolution method whereby the disputing parties submit their agreement to a mutually agreed-upon neutral decision maker.
Mediation
An Alternative Dispute resolution method in which the disputant parties select a neutral party to help them reconcile their differences by facilitating communication and suggesting ways to solve their problems.
Mini trials
Early neutral case Evaluation
Private Trials
Summary Jury Trials
Court Annexed ADRs
White Collar Crimes
Chapter 7 in the book
Definition:
The US Department of Justice defines White collar crimes as, “nonviolent crime for financial gain committed by means of deception by persons whose occupational status is entrepreneurial, professional or semi-professional and utilizing their special occupational skills and opportunities; also, nonviolent crimes for financial gain utilizing deception and committed by anyone having special technical and professional knowledge of business and government, irrespective of the person’s occupation”.
So if we put it in simple words it can be defined as crimes committed by individual who have gained expertise in a certain field, by using their special information or training, can be considered as white collar crimes.
Prominent White Collar Crimes
Bribery
Criminal Fraud
Defalcation
False Entries
False Token, False Document etc
False Pretense e.g. worthless check
Forgery
Fraudulent Concealment
Larceny
Embezzlement
Computer Crimes
Law of Contracts
Chapter 10
ELEMENT IN A CONTRACT
- Legal Offer
- Legal Acceptance
- Consideration
- Genuine Assent
- Competent parties
- Legal Object
CLASSIFICATION (KINDS) OF CONTRACTS
- Express and Implied Contracts
- Unilateral and Bilateral contracts
- Void Voidable and Valid
- Executed and Executory contracts
- Quasi Contracts
Product &Service Liability
Chapter 13
Definition:
The obligation of a company to make restitution for loss related to personal injury, property damage or other harm caused by its product or service is known as product or service liability.
Products liability refers to the liability of a manufacturer or seller for injury caused by his product to the person or property of a buyer or third party.
Negligent failure to warn
That means the manufacturer or the service provider did not provide a proper warning for the use of his items. A good example of this would be toys industry, where we see signs saying the toy is not appropriate for children under the age of 3 or 4. Same kind of warning you can find on the back of Key boards of computers where it is said that too much use of the key board might cause muscular pain. Nearly every item you can find on shelves in the market contains some form of warning attached to it. It is good for the use of consumers and provides adequate warning for the use of items.
Negligent provision or an inadequate warning
These are cases where you can find warnings on items but the warning is inadequate or insufficient. For example warnings contained on electronic appliances, they are there but sometimes not sufficient. Even in the cases of drugs and medicines. Sometimes the consumers need more warning then what is there on the product.
Negligent design
This happens where the manufacturer or provider does not design an article properly. For example cars without proper brakes would be considered a negligent or faulty design. When things are not properly designed for the purpose they are supposed to serve they would be considered as a negligent design.
Negligent manufacture
In this case the design might be the same or right but due to mass production or any other reason involved in it, the manufacturing process has not been done properly. There is negligence involved in the production of items. For an example the design of car can be perfect and everything can be in place in the designing stage but when it goes to production the manufacturer forgets to put in all the parts as required by the design.
Negligent testing or failure of the test
This happens when people do not properly check the items they are making. Testing is a very important process in the field of producing. Companies keep on checking medicines for years and years before they launch it in the market. The reason for putting so many efforts in testing is to be sure if the product works in the manner in which it is supposed to work.
Negligent advertising
Recently lots of companies have adopted bad business practice of advertising wrongly their commodities. They present a wrong picture of the item or the service they are providing, which is either deceptive or is not true at all. A company might say that you can use a certain washing machine for cleaning and you may also use it for cooking food afterwards, which may not be true for that product. People may buy it considering it as a multipurpose object but would be disappointed to know that it is not serving all the purposes that the advertisement said.
Law of Torts
Chapter 12
Definition:
An Injury to another person or Property; Civil Wrong.
Torts cases are commonly referred to as personal injuries, although a case may only harm solely to a property.
Punishments or Damages available in law of torts
- Compensatory damages
Compensatory damages are designed to make the victims whole again, that is to put the victim in position where he should have been if the tort had never happened.
- Nominal damages
It is to recognize that the plaintiff has been wronged. A nominal additional punishment is also imposed on the respondent other then compensation.
- Punitive damages
It is to punish the defendant. The severity of the wrongdoing is determined
Classification of Torts
Intentional Torts
- AGAINST PERSON
(i)Assault and Battery.
ASSAULT: Intentional placing a person in fear or apprehension of immediate, offensive bodily contact.
BATTERY: Intentional, unwanted, and offensive bodily contact.
(ii)Defamation
Intentional publication (communication to a third party) of false statement that is harmful to the plaintiff’s reputation.
Libel: Publication of a defamatory statement in permanent form.
Slander: Spoken defamatory statement.
(iii)Appropriation
A privacy tort that consists of using a person’s name or likeness for commercial gain without the person’s permission.
(iv)Invasion of privacy
Privacy torts that consists of encroaching on the solitude, seclusion, or personal affair of someone who has the right to expect privacy.
a)Intentional infliction of emotional distress.
(v)False imprisonment
Imprisoning or restraining a person without the right to do so.
- Against Property
(i)Trespass to Real property (Reality)
Intentionally entering the land of another or causing an object to be placed on the land of another without the landowner’s permission.
(ii)Trespass to personality
Intentionally exercising dominion and control over another’s personal property.
(iii)Conversion
Intentional permanent removal of property from the rightful owner’s possessions and control.
- Against Economic Interest
(i)Disparagement
Intentionally defaming a business product or service of a company.
(ii)Intentional Interference With a Contract:
Knowingly and successfully taking action for the purpose of enticing a third party to breach a valid contract with the plaintiff.
(iii)Unfair competition
Entering into business for the sole purpose of causing a loss of business to another firm.
(iv)Misappropriation of ideas.
Use of an unsolicited idea for a product, service, or marketing method without compensating the originator of the idea.
Negligence Torts
Failure to live up to the standard of care that a reasonable person would meet to protect others from an unreasonable risk of harm.
Strict Liability
Where the defendant is engaged in an activity which is inherently dangerous under the circumstances and no amount of due care can make it safe.
(This is just a detailed syllabus for you to follow, please do not use it as a handout; Books are better in all cases)