Table of contents for International business law : text, cases, and readings / Ray August ; with revisions by Don Mayer and Michael Bixby.

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Contents
Preface xix
CHAPTER 1 Introduction to International and Comparative Law 1
A.	What Is International Law? 1
B.	The Making of International Law 2
C.	Sources of International Law 2
Treaties and Conventions 3
Case 1-1 Legal Status of Eastern Greenland 4
Custom 5
Case 1-2 The Asylum Case 6
General Principles 7
D.	The Scope of International Law in Actual Practice 7
The Practice in International Tribunals 7
The Practice in Municipal Courts 8
Case 1-3 Sei Fjujii v. State 9
E.	International Persons 11
States 11
Case 1-4 Matimak Trading Co. v. Khalily and D.A.Y. Kids Sportswear Inc. 12
Case 1-5 The Trail Smelter Arbitration 17
Case 1-6 Arab Republic of Syria v. Arab Republic of Egypt 20
International Organizations 22
Case 1-7 Arab Monetary Fund v. Hashim and Others (No. 3) 23
Case 1-8 Eunomia di Porro & Co. v. Italian Ministry of Public Education 29
F.	The Rights of Individuals Under International Law 41
Case 1-9 De Sanchez v. Banco Central de Nicaragua 42
G.	Comparison of Municipal Legal Systems 44
Reading 1-1 The Clash of Civilizations? 45
The Romano-Germanic Civil Law System 49
Case 1-10 Raulin v. Fischer 51
The Anglo-American Common Law System 53
The Islamic Law System 54
Case 1-11 Libyan American Oil Company (LIAMCO) v. Government of the Libyan Arab Republic 55
Chapter Questions 59
Review Problem 61
CHAPTER 2 State Responsibility and Environmental Regulation 62
Introduction 62
A.	State Responsibility 63
Doctrine of Imputability 63
Case 2-1 Sandline International Inc. v. Papua New Guinea 63
Nonimputable Acts 67
Case 2-2 Home Missionary Society Case 67
Case 2-3 Flatow v. The Islamic Republic of Iran 69
Fault and Causation 73
B.	Standard of Care 74
The National Standard of Care 74
Case 2-4 Cantero Herrera v. Canevaro & Co. 74
The International Standard of Care 76
Expropriation 77
Case 2-5 ACSYNGO v. Compagnie de Saint-Gobain (France), SA 78
Case 2-6 Case Concerning Barcelona Traction, Light, and Power Company, Ltd. (Second Phase) 81
Denial of Justice 83
Case 2-7 Chattin v. United Mexican States 83
C.	Objections 85
Lack of Standing 85
Lack of Nationality 86
Lack of a Genuine Link 87
Failure to Exhaust Remedies 87
Case 2-8 The M/V "SAIGA" Case (Merits) 88
Other Objections 91
D.	Relief 92
Case 2-9 Re Letelier and Moffitt 92
E.	Insurance 95
Private Insurers 95
National Investment Guarantee Programs 95
Case 2-10 In the Matter of Revere Copper and Brass, Inc. and Overseas Private Investment Corporation 98
Multilateral Investment Guaranty Programs 101
F.	Environmental Protection 102
Regulation of Pollution 103
Case 2-11 Southern Bluefin Tuna Cases: Provisional Measures 104
Reading 2-1 The U.S. View: Kyoto Protocol Is Fundamentally Flawed 110
Protection of Natural Resources 113
Liability for Environmental Damage 114
Chapter Questions 115
Review Problem 117
CHAPTER 3 Dispute Settlement 118
A.	Settlement of Disputes Through Diplomacy 118
Negotiation 118
Mediation 119
Inquiry 119
B.	Settlement of Disputes in International Tribunals 120
International Court of Justice 120
Case 3-1 Case Concerning Military and Paramilitary Activities in and Against Nicaragua (Jurisdiction and Admissibility) (Dissenting Opinion) 124
World Trade Organization Dispute Settlement Procedures 127
Case 3-2 European Communities-Customs Classification of Certain Computer Equipment 128
Case 3-3 Japan-Taxes on Alcoholic Beverages 132
International Center for the Settlement of Investment Disputes 134
Case 3-4 Fedax N.V. v. The Republic of Venezuela 135
Other Arbitration Tribunals 143
C.	Settlement of Disputes in Municipal Courts 144
Jurisdiction in Criminal Cases 144
Case 3-5 Attorney-General of the Government of Israel v. Eichmann 145
Jurisdiction in Civil Cases 149
Case 3-6 Bumper Development Corp., Ltd. v. Commissioner of Police of the Metropolis and Others (Union of India and Others, Claimants) 149
Case 3-7 Shell v. R.W. Sturge, Ltd. 152
D.	Immunities of States from the Jurisdiction of Municipal Courts 156
Sovereign or State Immunity 156
Case 3-8 Abbott v. Republic of South Africa 159
Act of State Doctrine 161
Case 3-9 Regina v. Bartle and the Commissioner of Police for the Metropolis and Others (Ex Parte Pinochet) 162
E.	Choosing the Governing Law 168
Agreement of the Parties 169
Statutory Choice of Law Provisions 170
Most Significant Relationship 171
Case 3-10 Bank of India v. Gobindram Naraindas Sadhwani and Others 171
Governmental Interest 174
Case 3-11 Reyno v. Piper Aircraft Company 174
F.	Refusal to Exercise Jurisdiction 177
G.	Opposition to the Exercise of Jurisdiction 178
Case 3-12 Airbus Industrie G.I.E v. Patel 178
H.	Proving Foreign Law 183
I.	Recognition of Foreign Judgments 184
Chapter Questions 185
Review Problem 186
CHAPTER 4 The Multinational Enterprise 188
Introduction 188
A.	The Business Form 188
Business Forms in Civil Law States 189
Business Forms in Common Law States 192
Case 4-1 Puerto Rico v. Russell & Co. et al. 195
The Importance of the Separate Legal Identity of Juridical Entities 200
Case 4-2 Case Concerning Barcelona Traction, Light and Power Co. (Second Phase) 200
B.	The Multinational Organization 202
The Parent Company 202
The Subordinate Structure 206
C.	International Regulation of Multinational Enterprises 207
Reading 4-1 Proposed ISO Standard for Global Business Conduct 207
D.	Home State Regulation of Multinational Enterprises 209
Unfair Competition Laws 209
Case 4-3 Metro Industries v. Sammi Corp. 212
Case 4-4 M¿tropole T¿l¿vision (M6) v. Commission of the European 
Communities 217
Products Liability Laws 222
Case 4-5 Asahi Metal Industry Co., Ltd. v. Superior Court of California, 
Solano County 226
Sharp Practices 230
Case 4-6 United States v. Blondek, Tull, Castle, and Lowry 231
E.	Host State Regulation of Multinational Enterprises 234
Consent to the Jurisdiction of the Host State 235
Common Enterprise Liability 235
Case 4-7 Touche Ross and Company v. Bank Intercontinental, Limited 235
Piercing the Company Veil 238
Case 4-8 Garden Contamination Case (No. 2) 239
Chapter Questions 241
Review Problem 243
CHAPTER 5 Foreign Investment 244
A.	Foreign Investment Laws and Codes 244
National Foreign Investment Policies 245
Screening Foreign Investment Applications 246
Formal and Informal Application Process 247
Reading 5-1 The Informal Application Process 248
Approval of Foreign Investment Applications 249
Case 5-1 Arab Republic of Egypt v. Southern Pacific Properties, Ltd., et al. 250
Business Forms 251
Limitations on Foreign Equity 252
Sectoral Limitations 252
Geographic Limitations 253
Case 5-2 Brady v. Brown 254
Free Zones 258
Case 5-3 Nissan Motor Mfg. Corp., U.S.A. v. United States 259
Foreign Investment Guarantees 263
B.	Supervision of Foreign Investment 265
Start-Up Standards 265
Operational Reviews 265
Modification of Foreign Investment Agreements 266
Protection of Subsidiaries 266
Case 5-4 Case Concerning Elettronica Sicula, SpA 269
Case 5-5 The Bhopal Case 272
Penalties for Noncompliance 275
C.	Securities Regulations 275
Securities 275
Trading in Securities 276
Securities Exchanges 276
Issuance of Securities 277
Clearance and Settlement Procedures 279
Case 5-6 Batchelder v. Kawamoto 280
Insider Trading Regulations 282
Case 5-7 United States v. O'Hagan 283
Takeover Regulations 289
D.	Enforcement of Securities Regulations Internationally 290
Memorandums of Understanding 291
The Convention on Insider Trading 291
Extraterritorial Application of U.S. Securities Laws 292
Case 5-8 Securities and Exchange Commission v. Knowles 292
Chapter Questions 295
Review Problem 297
CHAPTER 6 Money and Banking 299
A.	Money 299
The Value of Money 300
The Choice of Money 300
Case 6-1 Republic of Argentina et al. v. Weltover, Inc. et al. 301
Maintaining Monetary Value 303
B.	The International Monetary Fund 303
Origin of the IMF 303
IMF Quotas 306
Case 6-2 Re Law Authorizing an Increase in the French Quota to the International Monetary Fund 309
Organization of the IMF 311
IMF Operations 311
C.	Currency Exchange 311
Currency Exchange Obligations of IMF Member States 311
Enforcement of Exchange Control Regulations of IMF Member States 312
Case 6-3 De Boer, Widow Moojen v. Ducro et al. 313
Case 6-4 Wilson, Smithett & Cope, Ltd. v. Terruzzi 316
Enforcement of Exchange Control Laws in the Absence of IMF Membership 319
Case 6-5 Menendez v. Saks and Company 320
Enforcement of Other IMF Member State Currency Exchange Obligations 322
Exemptions for New Members from IMF Member State Currency Exchange 
 Obligations 322
D.	Currency Support 322
IMF Facilities 323
IMF "Conditionality" 324
E.	Development Banks 324
F.	The Bank for International Settlements 325
The Central Banks' Bank 326
Promoter of International Monetary Cooperation 327
Agent for International Settlements 327
G.	Regional Monetary Organizations 327
H.	National Monetary Systems 329
National Monetary Organizations 329
Bank Deposits 330
Case 6-6 The Banker's Case 330
Reading 6-1 Islamic Banking 332
Eurocurrency Deposits 334
The Interbank Deposit Market 334
The Foreign Exchange Market 335
Foreign Exchange Contracts 336
Case 6-7 Hunt et al. v. Alliance North American Government Income Trust, Inc. 
et al. 337
Arbitrage 340
The Transfer of Money 340
Reading 6-2 The Illicit Transfer of Money 340
Branch Banking 343
Case 6-8 In re Sealed Case 344
Case 6-9 Vishipco Line et al. v. Chase Manhattan Bank, N.A. 346
Case 6-10 Libyan Arab Foreign Bank v. Bankers Trust Company 349
Chapter Questions 350
Review Problem 351
CHAPTER 7 Trade in Goods 353
A.	History of Contemporary International Trade Law 353
The Bretton Woods System 354
The 1947 General Agreement on Tariffs and Trade 354
Multilateral Trade Negotiations 356
The Uruguay Round 357
B.	The World Trade Organization 357
The WTO Agreement 358
The Membership of the WTO 359
Structure of the WTO 360
Decision Making Within the WTO 362
Reading 7-1 The Battle for Seattle 362
Waivers 366
Dispute Settlement 367
Trade Policy Review 367
C.	The 1994 General Agreement on Tariffs and Trade 367
Direct Effect 369
Case 7-1 Finance Ministry v. Manifattura Lane Marzotto, SpA 369
Nondiscrimination 370
Case 7-2 Japan-Taxes on Alcoholic Beverages 371
Protection Through Tariffs 375
Transparency 376
Regional Integration 377
Commodity Arrangements 377
Escape Clause 379
Exceptions 379
Case 7-3 United States-Import Prohibition of Certain Shrimp and Shrimp Products 380
Export Controls 385
Other Multilateral Export-Control Programs 386
United Nations Action to Maintain International Peace 387
D.	Multilateral Trade Agreements 388
Custom Valuation 388
Case 7-4 Orbisphere Corp. v. United States 389
Preshipment Inspection 392
Technical Barriers to Trade 393
Sanitary and Phytosanitary Measures 394
Case 7-5 Australia-Measures Affecting Importation of Salmon 395
Trade-Related Investment Measures 399
Import-Licensing Procedures 400
Antidumping 400
Subsidies and Countervailing Measures 401
Case 7-6 Mukand Ltd. v. Council of the European Union 404
Safeguards 407
Agriculture 408
Textiles and Clothing 410
Rules of Origin 410
Chapter Questions 411
Review Problem 413
CHAPTER 8 Services and Labor 415
Introduction 415
A.	The General Agreement on Trade in Services 415
The Framework Agreement 416
Case 8-1 European Communities-Regime for the Importation, Sale, and Distribution of Bananas 417
GATS Annexes 423
GATS Schedules of Specific Commitments 423
B.	Regional Intergovernmental Regulations on Trade in Services 425
European Union Law on Trade in Services 425
Case 8-2 Jany v. Staatssecretaris van Justitie 425
Provisions Governing Trade in Services in the North American Free Trade 
 Agreement 428
C.	International Labor Law 429
International Labor Organization 430
Case 8-3 Duberg v. UNESCO 434
The Human Rights of Workers 436
Case 8-4 Doe v. Unocal Corp. 439
D.	Regional Intergovernmental Regulations on Labor 445
Employment Laws in the European Union 445
Employment Standards of the Organization for Economic Cooperation and 
 Development 447
Protection of Workers' Rights by the Council of Europe 448
Transnational Organized Labor 450
E.	Movement of Workers 450
Case 8-5 State v. Nagami 451
Visas 453
Case 8-6 Republic v. Mussa and Five Others 453
Case 8-7 England and Another v. Attorney-General of St. Lucia 457
Regulation of Foreign Workers 459
Case 8-8 George v. International Air Service Co., Ltd. 459
Case 8-9 Spiess et al. v. C. Itoh & Co. (America), Inc. 462
Application of Home State Labor Laws Extraterritorially 464
Case 8-10 Morelli v. Cedel 465
Chapter Questions 467
Review Problem 468
CHAPTER 9 Intellectual Property 470
Introduction 470
A.	The Creation of Intellectual Property Rights 471
Copyrights 471
Case 9-1 Performing Right Society, Limited v. Hickey 474
Case 9-2 Quality King Distributors, Inc. v. L'anza Research 
International, Inc. 479
Patents 483
Case 9-3 Monsanto Co. v. Coramandal Indag Products, (P) Ltd. 485
Trademarks 489
Case 9-4 Experience Hendrix, L.L.C. v. Hammerton 492
Know-How 498
B.	International Intellectual Property Organization 498
World Intellectual Property Organization 498
Council for Trade-Related Aspects of Intellectual Property Rights 500
C.	Intellectual Property Treaties 500
Comprehensive Agreements 500
Artistic Property Agreements 501
Industrial Property Agreements 504
D.	The International Transfer of Intellectual Property 506
E.	Licensing Regulations 507
Territorial Restrictions 509
Case 9-5 Consten and Grundig v. Commission 511
Export Restrictions 516
Cartels 517
Exclusive Licenses 518
Case 9-6 Ransome-Kuti v. Phonogram, Ltd. 518
Sales and Distribution Arrangements 519
Price-Fixing 520
Noncompetition Clauses 520
Challenges to Validity 521
Tying Clauses 521
Quantity and Field-of-Use Restrictions 522
Restrictions on Research and Development 523
Quality Controls 523
Grant-Back Provisions 523
Restrictions that Apply after the Expiration of Intellectual Property Rights 524
Restrictions that Apply after the Expiration of the Licensing Agreement 525
F.	Compulsory Licenses 526
Patents 526
Reading 9-1 Compulsory Patent Licenses in the Fight Against AIDS 527
Copyrights 531
Chapter Questions 531
Review Problem 533
CHAPTER 10 Sales 535
A.	United Nations Convention on Contracts for the International Sale 
of Goods 535
B.	Transactions Covered in CISG 536
Opting In and Out 537
Case 10-1 Asante Technologies, Inc. v. PMC-Sierra, Inc. 537
Sales Defined 541
Goods Defined 541
Mixed Sales 542
C.	Contractual Issues Excluded from the Coverage of CISG 542
Illegality and Incompetency 542
Third-Party Claims and Personal Injuries 542
Preemption 543
D.	Interpreting CISG 543
The Convention 543
General Principles 547
Rules of Private International Law 547
E.	Interpreting Sales Contracts 548
Statements and Conduct of the Parties 548
Negotiations 548
Case 10-2 MCC Marble Ceramic v. Ceramica 549
Practices and Usages 554
Form 554
F.	Formation of the Contract 556
The Offer 556
Definiteness 556
Effectiveness of an Offer 557
Acceptance 559
Case 10-3 United Technologies International, Inc. v. Magyar L¿gi K¿zleked¿si V¿llalat 560
Acceptance with Modifications 563
Case 10-4 Filanto, SpA v. Chilewich International Corp. 563
G.	General Standards for Performance 566
Fundamental Breach 566
Avoidance 566
Requests for Specific Performance 566
H.	Seller's Obligations 567
Place for Delivery 567
Time for Delivery 567
The Turning Over of Documents 568
Conformity of Goods 568
I.	Buyer's Obligations 569
Payment of the Price 569
Case 10-5 The Natural Gas Case 570
Taking Delivery 572
J.	The Passing of Risk 572
Agreement of the Parties 573
Means of Delivery 573
Breach of Contract 574
K.	Remedies 574
Buyer's Remedies 574
Reading 10-1 The Buyer's Right to Avoid the Contract 575
Case 10-6 The Shoe Seller's Case 577
Seller's Remedies 579
Remedies Available to Both Buyers and Sellers 580
Case 10-7 Downs Investments Pty. Ltd. v. Perwaja Steel SDN BHD 582
L.	Excuses for Nonperformance 587
Force Majeure 587
Case 10-8 Nuova Fucinati, SpA v. Fondmetall International, AB 588
Dirty Hands 590
Chapter Questions 590
Review Problem 591
CHAPTER 11 Transportation 593
A.	Trade Terms 593
Case 11-1 St. Paul Guardian Insurance Company v. Neuromed Medical Systems & Support, GmbH 594
A Note on the Incoterms 597
"Free" Terms 597
FOB-Free On Board 598
Case 11-2 Pyrene Co., Ltd. v. Scindia Navigation Co., Ltd. 601
FAS-Free Alongside Ship 604
CIF-Cost, Insurance, and Freight 604
CFR-Cost and Freight 604
Case 11-3 Phillips Puerto Rico Core, Inc. v. Tradax Petroleum, Ltd. 607
DES-Delivered Ex Ship 609
FCA-Free Carrier 610
EXW-Ex Works 610
B.	Transportation 610
C.	Inland Carriage 611
D.	Carriage of Goods by Sea 612
Common Carriage 612
The Bill of Lading 617
Case 11-4 M. Golodetz & Co., Inc. v. Czarnikow-Rionda Co., Inc. 
(The Galitia) 618
Case 11-5 Barclays Bank, Ltd. v. Commissioners of Customs and Excise 622
Carrier's Duties Under a Bill of Lading 626
Carrier's Immunities 626
Case 11-6 Great China Metal Industries Co. Ltd. v. Malaysian International Shipping Corp. 627
Liability Limits 631
Case 11-7 Croft & Scully Co. v M/V Skulptor Vuchetich et al. 631
Time Limitations 633
Third-Party Rights (Himalaya Clause) 633
E.	Charterparties 634
Voyage Charterparties 634
Time Charterparties 635
Charterparties and Bills of Lading 635
F.	Maritime Liens 635
Case 11-8 The Chinese Seamen's Foreign Technical Services Co. v. Soto Grande Shipping Corp., SA 636
G.	Maritime Insurance 638
Perils 639
Case 11-9 Western Assurance Co. of Toronto v. Shaw 639
Average Clauses 640
H.	Carriage of Goods by Air 641
Case 11-10 Abnett v. British Airways Plc. 643
Chapter Questions 647
Review Problem 648
CHAPTER 12 Financing 649
Introduction 649
A.	Financing Foreign Trade 649 
B.	Bills of Lading 650
C.	Bills of Exchange 650
The Law Governing Bills of Exchange 650
Types of Bills of Exchange 651
D.	Promissory Notes 654 
E.	Negotiability of Bills and Notes 654
Unconditional Promise or Order to Pay 656
Definite Sum of Money or Monetary Unit of Account 656
Payable on Demand or at a Definite Time 657
Signed by the Maker or Drawer 657
Case 12-1 Constantaras v. Anagnostopoulos 657
F.	The Negotiation and Transfer of Bills and Notes 659
Assignment 659
Negotiation 659
Case 12-2 Miller v. Race 660
Forged Endorsements 664
Case 12-3 Mair v. Bank of Nova Scotia 664
Limitations on the Excuses that Drawers and Makers Can Use to Avoid Paying Off 
 a Bill or Note 666
Liabilities of Makers, Drawers, Drawees, Endorsers, and Accommodation 
 Parties 667
Case 12-4 Far East Realty Investment, Inc. v. Court of Appeals et al. 668
The Role of Banks in Collecting and Paying Negotiable Instruments 670
Case 12-5 Charles R. Allen, Inc. v. Island Cooperative Services Cooperative Association 671
G.	Letters of Credit 673
Governing Law 676
Applying for a Letter of Credit 676
Case 12-6 Trans Trust Sprl v. Danubian Trading Co., Ltd. 678
Documentary Formalities 679
Advising and Confirming Letters of Credit 680
The Obligations of Banks 680
Case 12-7 Sztejn v. J. Henry Schroeder Banking Corp. 684
Rights and Responsibilities of the Account Party 686
Rights and Responsibilities of Beneficiaries 686
H.	Financing Foreign Operations 687
Private Sources of Capital 687
Governmental Sources of Capital 687
Regional and International Development Agencies 688
I.	Countertrade 688
Reading 12-1 The Pros and Cons of Countertrade 689
Chapter Questions 690
Review Problem 692
CHAPTER 13 Taxation 694
A.	Purposes of Taxation 694
Case 13-1 In re Natural Sweet Wines 695
B.	Income Taxes 697
C.	Taxpayers 702
Company Taxpayers 703
Subordinate Business Structures 703
Case 13-2 Reiss and Company (Nigeria), Ltd. v. Federal Board of Inland 
Revenue 708
D.	Bases of Income Taxation 712
Nationality Principle 713
Case 13-3 Cook v. Tait, United States Collector of Internal Revenue for the District of Maryland 713
Residency Principle 714
Case 13-4 Crown Forest Industries Ltd. v. Canada 715
Source Principle 719
Case 13-5 Bank of the Federated States of Micronesia v. Government of the Federated States of Micronesia 724
Interrelationship of Taxation Bases 726
Persons Immune from Taxation 726
E.	Income 727
Income Categories 727
Computation of Income 727
Income Tax Rates 727
Case 13-6 Mobil Oil (Nigeria), Ltd. v. Federal Board of Inland Revenue 728
Integration of Company and Personal Income Taxes 730
Other Tax-Generating Transactions 731
F.	Double Taxation 732
Systems for Relief from Double Taxation 732
Comparison of the Double Taxation Relief Systems 733
Case 13-7 Director General of Inland Revenue v. Rothmans of Pall Mall (Malaysia) Bhd. 734
G.	Tax Treaties 735
Coverage of Tax Treaties 736
Basis for Taxation 736
Double Taxation Provisions 737
Case 13-8 Johansson v. United States 737
H.	Tax Incentives 741
Tax Sparing 742
The Interaction of Tax Systems 742
I.	Tax Avoidance and Evasion 743
Tax Avoidance 743
Reading 13-1 Reincorporating Abroad to Minimize Taxes as an Act 
of Patriotism 747
Case 13-9 Barclays Bank, PLC v. Franchise Tax Board of California 750
Tax Evasion 758 
Case 13-10 Kalo v. Commissioner of Internal Revenue 758
J.	Other Forms of Taxation 762
Turnover Taxes 762
Reading 13-2 Defining the Value-Added Tax 763
Miscellaneous Taxes 765
Chapter Questions 768
Review Problem 769
Credits for Readings and Cases 773
Case Index 775
Statutory Index 781
Topical Index 794

Library of Congress Subject Headings for this publication:

Commercial law.
International business enterprises -- Law and legislation.
Foreign trade regulation.