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Unformatted text preview: INTERNATIONAL LAW TERMS APPLICATION ENVIRONMENTAL CASE Several employees were quickly leaving a room where several chemicals were used in a critical phase of the manufacturing process. The employees reported that they were leaving because of uncomfortable fumes and they were urging other employees to leave as well. You inspected the room and smelled only trace amounts of chemicals, which happens every now and then. COMITY One nation gives deference and respect to the laws of another country Follow the laws of the country where live and do business U.S. will enforce the court judgments of another country if consistent with our laws and policies Where U.S. company is a party SOVEREIGN IMMUNITY Foreign government can be sued in United States court unless: Waiver by foreign country Conducts commercial business in the U.S. SULLIVAN PRINCIPLES U.N. ADOPTION 1999 Fair compensation Human rights Employees, communities, business contracts Diversity and equal opportunity Train and educate workers Equal access to corporate committees and boards Internationally operating NGOs 40,000 NONGOVERNMENTAL ORGANIZATIONS National numbers an estimated 2 million NGOs Voluntary agreements guidelines only Push for UNsponsored conferences and resolutions Work with corporations doing business in developing countries TYPES OF NGO INGO stands for international NGO, such as CARE RINGO is an abbreviation of religious international NGO such as Catholic Relief Services ENGO, short for environmental NGO, such as Global 2000 Other Examples: Amnesty International, Red Cross INTERNATIONAL CONTRACTS Choice of language Choice of forum Choice of law Force Majeure Act of God War Political upheaval IMPORTEXPORT U.S. Constitution Article I, Imports: Section 9, Exports: Quotas No taxes on exported Tariffs products Block certain Can give tax incentives to export companies countries Can restrict type of NAFTA exports EUROPEAN Can impose quotas on UNION exports FOREIGN CORRUPT PRACTICES ACT Criminal offense to bribe a foreign official so that a foreign business contract can be executed. Facilitating payments ("grease") made to certain minor officials do not violate the act when the administrative services provided through the official would be conducted very slowly if the payments were not made. FCPA PENALTIES Any officer or director of a domestic concern, or stockholder acting on behalf of such domestic concern, who willfully violates this section shall be fined not more than $100,000 or imprisoned not more than 5 years, or both. ALIEN TORTS CLAIM ACT Foreign citizens can sue in American courts for our violations of international law Few successes Companies that face ATCA cases include Texaco (a subsidiary of Chevron), CocaCola, ExxonMobil, Firestone, Shell and WalMart, tobacco companies Extraterritoriality Problematic to enforce American laws in other countries Apply to domestic companies abroad? Apply to other nations' businesses? U.S. Laws in a Global Context Carnero v. Boston Scientific; SarbanesOxley protection for whistleblowers? foreign citizen working for foreign subsidiary of U.S. company is not protected U.S. companies in foreign countries must abide by antidiscrimination laws unless conflict with foreign laws FORUM CASE When Gonzalez was visiting Houston he researched Chrysler vehicles and bought one on his return to Mexico. A year later, when his wife was driving the car, she was in an accident that triggered the passengerside air bag, which killed his threeyearold son. Gonzalez sued Chrysler and the air bag maker in a Texas court. Mexico limits damages to $2500. The trial court dismissed the suit on the grounds of forum non conveniens, holding that Texas has a small connection to the case. Gonzalez must file suit in Mexico. Gonzalez appealed. DECISION Trial Court decision was affirmed. the fact that Mexican law limits damages in tort cases (at about $2,500 in such a case) does not render Mexico an inadequate alternative forum. Both private and public interest factors weigh in favor of maintaining suit in Mexico Mexican citizen Product was sold in Mexico Companies were subject to Mexican laws ...
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This note was uploaded on 04/17/2008 for the course ACCT 2701 taught by Professor L.phillips during the Winter '08 term at CSU East Bay.

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