International Business Key terms CH.2

public international law

legal relations between governments

private international law

laws governing transactions of individuals and companies that cross international borders

treaties

agreements between countries, which may be bilateral (between two countries) or multilateral (involving more than two countries); also called conventions, covenants, compacts, or protocols

extraterritorial application of laws

a country’s attempt to apply its laws to foreigners or non- residents and to acts and activities that take place outside its borders

litigation

a legal proceeding to determine and enforce a particular legal right.

arbitration

a process, agreed to by parties to a dispute in lieu of going to court, by which a neutral person or body makes a binding decision

Incoterms

universal trade terminology developed by the Inter- national Chamber of Commerce

intellectual property

patents, trademarks, trade names, copy- rights, and trade secrets, all of which result from the exercise of someone’s intellect

patent

a government grant giving the inventor of a product or process the exclusive right to manufacture, exploit, use, and sell that invention or process

trademark

a shape, a color, design, catchy phrase, abbreviation, or sound used by merchants or manufacturers to designate and differentiate their products

trade name

a name used by merchants or manufacturers to designate and differentiate their products

copyright

exclusive legal rights of authors, composers, creators of software, playwrights, artists, and publishers to publish and dispose of their works

trade secret

any information that a business wishes to hold confidential

competition laws

the EU equivalent of antitrust laws

antitrust laws

Laws to prevent inappropriately la concentrations of power and the potential abuse of such power through price fixing, market sharing, and business monopolies

torts

injuries inflicted on other people, either intentionally or negligently

product liability

standard that holds a company and its officers and directors liable and possibly subject to fines or imprisonment when their product causes death, injury, or damage

strict liability

standard that holds the designer/manufacturer liable for damages caused by a product with- out the need for a plaintiff to prove negligence in the product's design or manufacture

questionable or dubious payments

bribes paid to government officials by companies seeking to purchase contracts from those governments

Foreign Corrupt Practices Act (FCPA)

U.S. law against making payments to foreign government officials for special treatment