Chapter 54 Business Law

Foreign Commerce Clause

Vests Congress with the power to regulate commerce with foreign nations

Treaty Clause

States that the president shall have the power to make treaties, provided two-thirds of the senators present concur

Bilateral treaty

Between two nations

Multilateral treaty

Involves more than two nations

Convention

Treaty sponsored by an international organization

General Assembly

Legislative body that is composed of all UN member nations
– Adopts resolutions concerning human rights, trade, finance, and economics

Security Council

Composed of 15 member nations
– Five permanent members
– Ten members are chosen by the members of General Assembly, responsible for maintaining international peace and security

Secretariat

Staff of persons that administers the day-to- day operations of the UN
– Headed by the secretary-general, who is elected by the General Assembly

United Nations Agencies

United Nations Educational, Scientific, and Cultural Organization (UNESCO)

United Nations Children’s Fund (UNICEF)

Agency of the United Nations whose primary function is to provide aid to improve the lives of the world’s children
– Goal is to provide humanitarian aid and assistance to children and mothers of children in developing countries

International Monetary Fund (IMF)

Agency of the United Nations whose primary function is to promote sound monetary, fiscal, and macroeconomic policies worldwide by providing assistance to poor countries

Council of Ministers

Composed of representatives from each member country who meet periodically to coordinate efforts to fulfill objectives of the treaty

European Union Commission

Charged to act in the best interest of the union
– Independent of the member nations

Euro

Single monetary unit that has been adopted by many countries of the EU that comprise the eurozone

ASEAN Plus Three (APT)

Includes China, Japan, and South Korea

ASEAN-China Free Trade Area (ACFTA)
• ASEAN-India Free Trade Area (AIFTA)
• ASEAN-Japan Comprehensive Economic Partnership
• ASEAN-Korea Free Trade Area (AKFTA)

Organization of the Petroleum Exporting Countries (OPEC)

Comprising of the oil-producing and oil-exporting countries of the world

Central America Free Trade Agreement (CAFTA)

An association of several Central American countries and the United States designed to reduce tariffs and trade barriers among member nations

Mercosur

Comprised of Argentina, Brazil, Paraguay, Uruguay, and Venezuela

Andean Community of Nations (CAN)

Comprised of Bolivia, Columbia, Ecuador, and Peru

Union of South American Nations (UNASUR)

Economic organization consisting of 12 member nations with a population of approximately 400 million people

General Agreement on Tariffs and Trade (GATT)

Multilateral treaty that establishes trade agreements and limits tariffs and trade restrictions among its member nations

WTO panel

Body of three WTO judges that hears trade disputes between member nations and issues panel reports

WTO dispute settlement body

Composed of one representative from each WTO member nation that reviews panel reports

WTO appellate body

Panel of seven judges selected from WTO member nations that hears and decides appeals from decisions of the dispute-settlement body

National courts

Courts of individual nations
– Primarily deals with commercial disputes between private litigants

Choice of forum clause (forum-selection clause)

Designates which nation’s court has jurisdiction to hear a case arising out of the contract

Choice of law clause

Designates which nation’s laws will be applied in deciding a dispute arising out of the contract

Foreign Sovereign Immunities Act (FSIA)

Governs suits against foreign nations that are brought in federal or state courts in the United States
– Codifies the principle of:
 Qualified immunity
 Restricted immunity

Commercial activity exception

States that a foreign country is subject to lawsuit in the United States if it:
 Engages in commercial activity in the United States
 Carries on such activity outside the United States but causes a direct effect in the United States