International Business Law: Foundations of Law and Natural Law

Comprehensive vocabulary flashcards covering the foundations of law, natural law theory, public versus private law, civil versus common law, European Union institutions, and international business law.

Natural Law

A system of rules or principles believed to be inherent in human nature and discoverable through reason, serving as a universal, unchanging guide for determining right and wrong independently of human-made laws.

Negative Rights

Fundamental natural rights inherent to all individuals from birth (such as life, liberty, and property) that exist independently of government, meaning no external party has to provide anything to an individual for these rights to exist.

Three Fundamental Natural Rights

Life, liberty, and property; three rights considered by natural law theory to be so bound together as to be essentially one right, while also imposing a moral duty on individuals not to harm these rights in others.

Justice George Sutherland's Doctrine on Property

The legal view expressed by Justice George Sutherland that it is the right to property—not property per se—that is protected, and that taking away a man's property (the fruit and badge of his liberty) leaves him a slave even if granted life and liberty.

Peter Jones's Rationale for Natural Rights

The political thesis that rights were established as 'natural' due to the dangers of unchecked political power, setting an independent standard that governments must respect, where any government violating these rights loses its right to rule.

Cicero's Concept of Natural Law

The Roman philosophical view that natural law is universal, eternal, and grounded in divine reasoning governing the universe, with human reason being a shared divine gift.

Thomas Aquinas's Natural Law Synthesis

The medieval philosophical framework combining natural law with Christian religious teachings, asserting that natural law reflects the moral order of the universe and is discoverable through human reason.

Habeas Corpus (Article I, Section 9)

A constitutional protection against unlawful detention that reflects natural rights philosophy by safeguarding individual liberty against arbitrary government power.

Contract Clause (Article I, Section 10)

A constitutional restriction preventing states from impairing contractual obligations, echoing classical liberal and natural law respect for private property and voluntary agreements.

Due Process Protections

Guarantees within the Fifth and Fourteenth Amendments safeguarding individuals against arbitrary government deprivation of life, liberty, or property without proper legal procedures.

Public Law

The branch of law governing relationships between the government and individuals or corporate entities (such as criminal prosecutions for assault, environmental pollution fines, and insider trading prosecutions).

Private Law

The branch of law regulating relationships and disputes between private parties (such as breach of contract between a company and a supplier, employment disputes over unpaid wages, and consumer product liability suits).

Bürgerliches Gesetzbuch (BGB)

The German Civil Code, which serves as the foundational statutory codification of private law in Germany.

Stare Decisis

The foundational doctrine of common law systems requiring judges to adhere to past judicial precedents when deciding current legal cases.

Subsumption

The legal reasoning process used extensively in civil law jurisdictions whereby a judge methodically matches the specific facts of a dispute under the formal criteria of a written legal statute.

Civil Law System

A legal tradition utilized by countries such as Germany and France, in which codified statutes and comprehensive written laws serve as the primary source for judicial decisions.

Common Law System

A legal tradition utilized by countries such as the USA, the UK, and Australia, in which judicial decisions and court precedents serve as the primary resource for determining case outcomes.

European Union Institutional Lawmaking Framework

The institutional process in which the European Commission proposes laws, the European Parliament and the Council of the European Union negotiate and adopt legislation, and the European Council sets the general political priorities.

European Parliament

The legislative body of the European Union consisting of 720 members directly elected by citizens every five years, responsible for electing the Commission President and adopting or amending legislative proposals alongside the Council.

European Council

The EU institution composed of heads of state or government of EU countries that defines the general political direction and priorities of the EU and appoints the Commission following parliamentary approval.

Council of the European Union

The EU institution consisting of national government ministers from each member state that negotiates and adopts legislative acts, typically co-deciding with the European Parliament.

European Commission

The executive body of the European Union led by a President and composed of 27 commissioners (one per member state) that proposes legislation, monitors policy implementation, and enforces EU law across member states.

Sources of International Public Law

The four hierarchical sources recognized by DiMatteo (2025): 1. International conventions and treaties; 2. International custom or general practice; 3. General principles of law recognized by civilized nations; 4. Judicial decisions and scholarly writings.

Lex Mercatoria

The historical and modern 'law of merchants,' referring to an informal set of generally accepted international commercial practices, norms, and non-legal customs that govern cross-border business transactions.

Legal Risk Areas in International Business

The eight core risk categories mapped for multinational business operations: tax regulation, corporate structure, contracts, marketing and data, competition, trade and export, IP and brand, and ESG and supply chain.