Phase Six Final Assignment

Client Newsletter Page 1



Colorado Technical University



Educational Corporate Client Newsletter

Instructor Birch

Submitted in Partial Fulfillment for the Requirements of


MGM230-0604A-03

Business Law



by

Billie Berry



Colorado Springs, Colorado

November 2006

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International Law

International law has many features important to nations and businesses. There is no single legislative source of international law and all countries with many international organizations responsible for enacting these laws. There is also no single world court responsible for interpreting international law. If there is an international legal dispute between parties that agree to be heard, they can go before several courts or tribunals. There is no world executive branch that has the right to enforce international laws. This would mean that nations do not have to obey international laws that have been enacted by other countries and international organizations. Because of this there are those that question whether international law is actually a law. As technology and transportation bring businesses, governments, nations and America closer, while foreign firms increase global activities, international aw will become more important (Cheeseman).

Sources of International Law

Article 38(1) of the Statute of the International Court of Justice shows that there are four sources categorized that the courts on the hierarchy use. When deciding on an international dispute, sources of international law is what the tribunals will rely on. These sources are treaties and conventions, custom, general principles of law, and judicial decisions and teachings (Cheeseman).

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Treaties and Conventions: these are equivalent to that of legislation at an international level. A treaty is the agreement or the contract between two or more nations that has been signed by an authorized representative that is then ratified by the supreme power of each nation involved. A bilateral is between two nations while a multilateral treaty would be between two or more nations (Cheeseman). Here an example of a treaty shows that not all treaties are agreed upon when put into affect. In 1992 the EU nations signed a treaty of Maastricht that set steps to accomplish two goals: political union and monetary union. The decision was made to remove currency barrier trades by replacing national currency with a single European currency called the euro. Countries had to converge their economic policies before this could happen. It is not possible to have different monetary policies in each of the member countries and one currency. Even though all member states are a part of the European Monetary Union, not all of them have adopted the euro. Only 12 out of the 25 members have embraced the euro as of August 2005 (Daniels, Radebaugh, Sullivan).
A convention is a treaty that is sponsored by international organizations like the United Nations and will normally have many signatories. A treaty and convention will address human rights, foreign aid, navigation, commerce, and settling disputes. Many treaties are published and registered with the United Nations (Cheeseman).
Custom: this is between nations and is the independent source of international law. This is a practice followed by two or more nations that are dealing with each other. It can be found in government statements, diplomatic correspondence, policy statements, press releases, and speeches. There are two elements that will have to be established showing that a practice is now a custom: there is a
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consistent and recurring action by two or more nations over a period of time and recognition that the custom is binding, meaning it is followed because of legal obligation and not courtesy. International customs can evolve into mores, technology, political parties, and forms of government. Other factors will change throughout the world. Most often customs that are recognized over a period of time are codified in treaties (Cheeseman).
General Principles of Law: tribunals and courts deciding on international disputes will often rely on general principles of law recognized by civilized nations. These principles of law are common to the national law to the parties of the dispute. They may come from constitutions, statutes, regulations, common law and other national law sources. A countries law may differ in the matter of the dispute in most cases (Cheeseman).
Judicial Decisions and Teachings: the fourth source of the law that an international tribunal can refer to is the judicial decisions and teachings with qualified scholars of various nations involved with the dispute. National court decisions will not create a precedent for an international court. International courts are not bound by state decisis and can decide each case based on its merits and can use past decisions as guidance when making their decisions (Cheeseman).
The Purpose of an International Organization
The United Nations: as an organization based in New York City, the goals created are to maintain peace and security throughout the world. Created by a multilateral treaty October 24, 1945 is based on the principles of justice, human dignity and the well being of all
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people. With 192 current members, it gives the opportunity for each country to balance global interdependence as well as national interests while addressing any international problems. They are governed by the General Assembly composed of all member nations, the Security Council composed of 15 member nations, and the Secretariat that administers the day to day operations of the UN.
The UN also has autonomous agencies that handle social and economic problems. These agencies include: United Nations Educational, Scientific, and Cultural Organization, United Nations International Children’s Emergency Fund, International Monetary Fund, the World Bank, and the International Fund for Agricultural Development (Cheeseman).
International Court of Justice (IJC): also called the World Court and based in Hague, the Netherlands, it is a judicial branch of the UN. Only a nation can have a case decided in this court. A nation can seek redress on the behalf of an individual or business, an individual or business can not be heard, when the claim is against another country. There are fifteen judges that serve a nine-year term with no more than two of them from the same nation. One judge can be appointed ad hoc for the case in dispute (Cheeseman).
International Criminal Court: this court was established in 1998 negotiated thru a treaty. Here the court will decide on cases of crimes against humanity that include war crimes and genocide. It took four years for this treaty to be ratified. This court can only prosecute those from the nations that did ratify the treaty. Fearing that there were not enough safeguards in place to protect U.S. soldiers on UN peacekeeping missions from any possible prosecutions, the U.S. backed out of the treaty. Operating as other courts would, this court began hearing cases in 2003. They are as well located in Hague (Cheeseman).
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World Trade Organization (WTO): was created for General Agreements on Tariffs and Trade (GATT). The WTO has more than 130 member nations and is located in Geneva, Switzerland. Members enter into trade agreements including sales of goods, provisions of services, intellectual property, licensing, subsidies and removal of trade barriers. Some have sated that the WTO has been given too much power and will impinge upon the sovereignty of individual nations. Others have great respect for the WTO’s ability to peaceably solve trade disputes (Cheeseman).

References:
Cheeseman, Henry. (2004). Business Law: Legal, E-Commerce, Ethical, and International Environments. (5th ed.). Pearson, Prentice Hall

Daniels, Radebaugh, Sullivan. (2007). International Business: environments and operations. (11th ed.). Pearson, Prentice Hall