(11.15) Lecture 5 - Sources of International Trade Law and International Private Law
Card 1: Introduction to International Trade Law
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International trade law differs significantly from national law.1
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There isn't a single international authority with the power to enforce rules on international corporations.1
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National laws are the primary source of international trade law.1
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They regulate relationships between international corporations.1
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National rules deal with the application of national laws.1
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Conflicts between national laws can arise when different countries' laws apply to the same contract.1
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A key principle is that parties are generally free to determine the content of their contracts, including the choice of applicable law.1
Card 2: Sources of International Trade Law
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National Rules: Each national system has its own international private law.1
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International Conventions: Agreements signed by states to harmonise their legal systems.1
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Conventions are very specific and numerous.1
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Many conventions can exist for different types of contracts between countries.1
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Treaties: More general state agreements (e.g., the Treaty of the European Union).1
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Acts of International Institutions:1
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EU treaties, directives, and regulations.1
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Directives: Require states to implement them, allowing some flexibility.1...
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Regulations: Directly applicable laws in all EU states, with no room for national implementation.2
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EU law prevails over national law in case of conflict.2...
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The EU has considerable power in the economic sector.4
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WTO Rules: The World Trade Organization can issue rules that states may choose to accept.4
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Conventional Practices: Common commercial practices4
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Uses and Practices: Similar terms referring to common actions in commerce.5
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Lex Mercatoria: Rules derived from commercial practices over centuries.5
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Includes standard clauses and forms of consent.5
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Private Uniform Rules: Standard rules issued by international institutions.5
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UNIDROIT principles: General principles created by the International Institute for the Unification of Private Law.5
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INCOTERMS (International Commercial Terms): Define responsibilities during transport.5...
Card 3: International Private Law
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International private law is a set of national rules governing relations between individuals of different nationalities.7
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It determines which legal system and jurisdiction applies.7
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The first topic is the applicable law, also known as the ethical mode.7
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The principle in most systems is that the choice of the parties is accepted by state law.7
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If parties do not choose the applicable law, the law will decide which system applies.7
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For example, Italian law uses the Rome Convention, stating that the contract is governed by the law chosen by the parties.8
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Without a choice of law, the law with the closest connection to the contract is applied.8
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Often the law of the seller's state.8
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It's recommended to include the applicable law in the contract to avoid complexity.9
Card 4: Limits to the Choice of Applicable Law
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Even with party autonomy, foreign law is not always applicable.9
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Rules of necessary application and rules of public order restrict the application of foreign laws.10
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Certain matters, like family law, may not allow for a free choice of law.10...
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Public order refers to a legal system's fundamental principles, which can change over time.11
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Foreign law cannot be applied if it violates the public order of the state.11
Card 5: Recognition of Foreign Decisions
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There are many problems related to the recognition of foreign decisions.11
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The European Union is an exception: Decisions issued by a judge in one member state are automatically recognised in other member states.11
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Outside the EU, decisions from foreign judges generally require another national process for recognition.11
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This may involve proving that the decision was properly made.11
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This can mean multiple proceedings.11
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Conventions between states can simplify recognition of decisions.11
Card 6: Jurisdiction and Arbitration
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Jurisdiction is the power of judges to interpret and apply the law.11
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Arbitration is an alternative method for settling disputes, particularly in international cases.11
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Arbitration is carried out by arbitrators, not judges, and it is a common way of settling international disputes.11
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Arbitrators are appointed by the parties involved, not by the state.