Legal Business Final

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45 Terms

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Why International Law Gets Misunderstood

  • People overestimate it because they imagine a powerful world court that can settle any dispute, but countries cannot be forced to participate, and there is no global police to enforce decisions 

  • People underestimate it because it quietly resolves thousands of everyday disputes involving citizens, companies, shipping and trade. 

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True Limits of International Law

  • International courts exist but only work when countries voluntarily submit 

  • They cannot compel major nations to comply, especially in disputes involving war or national survival 

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Kellogg-Briand Pact

  • Countries promised to make war "illegal", but the treaty had no enforcement mechanism 

  • WWII followed shortly after, proving treaties alone cannot stop powerful nations 

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Who Actually Applies International Law

  • Some specialized international courts operate, but the majority of cross-border disputes are handled in domestic courts using international law principles 

  • Domestic courts enforce many treaties, especially commercial ones 

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Status of International Law in the US

  • The Constitution outranks everything 

  • Federal statutes and treaties are tied meaning a later one overrides an earlier one 

  • A treaty can be implicitly abrogated if Congress passes a conflicting statute later 

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Four Sources of International law

Treaties, Custom, Prior cases, General principles

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Treaties

The clearest and most enforceable source

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Custom

Long-established international practices accepted as rules

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Prior cases

courts look at older decisions for guidance, though they are not binding

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General principles

Basic fairness rules recognized worldwide

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Sovereign Immunity

  • Governments cannot be sued without their consent 

  • Two exceptions internationally: 

    • When the government behaves like a business 

    • When the conduct involves atrocities, where immunity would be absurd 

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Collecting judgements against foreign parties

  • Easy if they have assets in the US 

  • Otherwise, you must go to their home country's courts, and success depends entirely on treaties and foreign procedures  

  • Without a treaty, collection becomes political and unreliable 

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Original Acquisition

  • Unowned property becomes owned by the first person to control it 

  • This includes things like wild animals or natural resources not previous claimed 

  • Rule of Capture also applies to underground resources that move beneath land 

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Production

  • If you create something using your own materials and labor, you own it 

  • Exception: goods made for an employer belong to the employer because the labor was contracted 

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Purchase and Title

  • You cannot buy good title from someone who doesn't have it 

  • Even innocent buyers of stolen items lose them if the true owner appears 

  • Courts may protect buyers only when the original buyer was extremely careless 

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Wills

  • Must meet strict formalities (writing, correct witnesses) 

  • Designed to prevent fraud and uncertainty 

  • Forced-share rules ensure spouses and minor children cannot be completely cut out 

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Inheritance Without a Will

  • State law decides who inherits, usually starting with closest family members 

  • If no family exists, property eventually goes to the state 

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Gifts

  • Requires intent and delivery - the giver must clearly intend to transfer ownership now, not later 

  • Constructive delivery (keys, documents) is allowed when physical delivery isn't practical 

    • Most gifts become final once delivered 

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Causa mortis

gifts are made when someone believes they are dying; they are revoked if the person survives 

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Inter vivos

gifts are ordinary and cannot be undone 

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Lost

Owner didn't intend to leave it; finder gets the best claim except against true owner

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Mislaid

Owner intentionally placed it somewhere but forgot; business or property owner gets the right to hold it 

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Abandoned

Owner intended to give it up; first person to take it becomes full owner 

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Estray Statutes

Allow finders of mislaid property to eventually become full owners if they report it, advertise it, and wait the required time 

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Accession

  • When a person's labor greatly improves another's property unintentionally, they may gain ownership of the improved item 

  • But they must pay the original owner for the value of the starting materials 

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Three types of Bailments

Benefits of the Bailor, Benefit of the Bailee, Mutual Benefit

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General concept

  • Temporary transfer of possession without transfer of ownership 

  • Requires intentional delivery and acceptance

  • Examples:

  • Handing your keys to a valet = bailment 

  • Parking your own car in a self-park lot = not bailment 

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Fee Simple Absolute

  • Most complete form of ownership; lasts forever unless owner transfers it 

  • Still subject to government restrictions like zoning 

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Life Estate

  • Ownership that lasts only for a lifetime 

  • Life tenants can use property but cannot reduce its value (no waste) 

  • If no remainder is named, property returns to original owner at death 

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Conditional Estates (Defeasible Estates)

  • Ownership that can end if a condition is broken 

  • Law tries to limit these with the Rule Against Perpetuities so property isn't tied up forever 

  • These usually create future interests such as contingent remainders 

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Tenancy in Common

  • Each owner can sell their share whenever they want 

  • Shares don't have to be equal 

  • Court can force the property to be sold if owners can't agree (partition) 

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Joint Tenancy

  • Must be explicitly stated 

  • Has right of survivorship – surviving owners automatically receive decreased owner's share 

  • Selling an interest destroys the joint tenancy for everyone 

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Tenancy by Entirety

  • Only for married couples; includes survivorship 

  • Neither spouse can sell without the other's consent 

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Profits

  • Right to go onto someone else's land and remove resources 

  • Stronger than an easement because it involves taking value

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Easements

  • Right to use another's land, usually for access 

  • Can be created by deed or by necessity  

  • Courts can grant right-of-way if fairness requires it 

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Protecting Title (4 steps)

Title search, record your deed, get a warranty deed, buy title insurance.

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Title search

to ensure seller actually owns what they claim 

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Record your deed

So future buyers cannot claim ignorance

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Get a warranty deed

for seller gurantees

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Buy title insurance

for protection against hidden defects

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Zoning

  • Local governments control what types of buildings can be in each area 

  • Variances allow exceptions when reasonable 

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Private Restrictions

Established through deed terms; enforceable on future owners

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Eminent Domain

Government can take private land only if: 

  • It pays just compensation 

  • The taking is for a public purpose (interpreted broadly) 

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Lucas

Regulation destroying all value counts as taking 

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Kelo

Economic development counted as "public purpose"