Introduction
Chapter 3 of the textbook legal business law and the legal environment deals with international law. The international law is the initial fundamental prospect of the United Nations established in June 1945 by the United Nations charter. The law is intended to promote economic and social development as well as advancing global security and peace. It is enshrined in standards, treaties, and conventions, which are valuable in promoting successful trade policies . The relations among most nations are developed under the basis of treaties brought about by the United Nations. The chapter also highlights aspects of International law which seeks to execute transactions for two or more nations under a set regulatory platform that cannot instigate conflict. The purpose of these laws is, therefore, to resolve the dispute, establish universal harmony, maintain order and protect rights and liberties in the business sector, and its relation to other customers, government authorities, and business. Customers suffered a lot in the past due to a lack of proper laws that would safeguard the money invested in a particular business or interest. These laws help to create a sense of satisfaction among customers by maintaining equilibrium since for any business, whether domestic or international, the actions and the strategies are key determinants to success. Business environments must, therefore, be established through a legitimate form of the rule of law. The past was characterized by distinct laws regarding the business transactions. They complicated the consumers, and the sellers need to establish a deal. A business organization can familiarize itself with these aspects of laws hence minimizing the chances of fraudulent transactions.
Islamic laws
(a) The law . Under Islamic law, also known as sharia, businesses that do not align with Muslim values are not permitted to make financial investments in such companies. The law also prohibits gambling. The law is founded on the fact that the apparent contract created by the two partners results from a corrupt inducement. Deceitful expectations provide the inducement in the mind of the parties that tend to profit disproportionately from the contract. Islamic law is essentially a religious law that encompasses the model of behavior as well as interrelations around society. As an aspect of international law, it covers business relationships, family, and personal matters. It is difficult to ascertain that all state laws are enforced in business settings. The commercial Ethics intended to promote a code of ethical conduct also lack an application mechanism and are subject to moral principles. In this aspect of the law, ethics are derived from religious, moral authority. Based on religious, moral authority, social standards cannot be determined by personal conscience but results in individual rules, uncertainty, and chaos. The law enshrines essential principles that are designed to promote transparency in business relationships. The law's concept of ‘gharar’ does not permit the signing of contracts that involve deception, risk, or are unclearly outlined. The law prohibits payment and collection of interest since it is viewed as unfair enrichment
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(b) Why an understanding of this aspect of the law is important . A business venture or company intending to venture should search for a legal framework before settling or launching the business. The application of the Islamic law could otherwise challenge business partners and hence fail to comply with certain provisions of their contract with the sharia law requirement. Companies that rely on compelling interests cannot operate in states understates. The strict nature of these laws is to provide fairness and justice with all parties involved; hence organizations and international companies ought to be mindful of such rules. The aspect is important to a business that seeks for a legitimate legal environment to venture as well as the kind of business to establish in a given country.
(c) Example. A money lending company could lend money to an industry or corporation operating under Islamic law. In case the corporation failed to pay the interest required by the lending company, the federal court is most likely to rule in favour of the corporation under Islamic law, since no breach of contract ( Foster, 2010) . The court in such a case is required to apply the sharia law. The money lending company could as well appeal for a new trial that attempts to argue that the application of Saudi's law in such a case was flawed; nonetheless, the company have been in a better situation if all the aspects of the law were put into consideration.
Common laws
(a)The law . Under the aspect of the conventional law system, the law includes a requirement to read treaties and agreements before enrolling in mutual business relations. These rules of law are shaped or formed after a court hears the cases and notes down the opinions. The subsequent case presented follows the same rule of law if the issue presented was the same as the previous case. Regional trade agreements promote universal trade policies and reduce restriction among members' nations while treaties and contracts are for the basis of the modern international law, which regulates the consent issues of common concern. They are intended to create and sustain a mutual relation between countries and even businesses. International organizations or different states that intend to abide by an agreement legally are governed by international law in the legal aspect. The mutual condition of agreement translated into personal terms means that the company or organization intends to keep the promise in good faith. A company must hence comprehend the boundaries of lawmaking treaties, where the initial provisions is applicable to the nations that have already signed and ratified or deposited an instrument of accession with the U.N. The agreements such as the GATT benefits partner countries due to free trade. The agreement helps to eliminate barriers and bolster commerce.
(b) Why an understanding of this aspect is importance. The aspect is important to a business that is in the process of deciding whether to enters into a contract with another business or not. Oral contracts are not enforceable, especially when under statutes of fraud, since they are hard to prove due to lack of terms of reference. For a verbal agreement to be binding, the contract must contain the offer, acceptance of the offer, consideration as well as the value that each party has agreed to pay to complete the transaction. The business understands the implication of an oral agreement and the danger that could implicate in case the other company denied any ownership. The law thus sensitizes a nation, company, organization that intends to commit itself to a business or any other form of contract.
(c) Example. In a particular business situation, Jason decides to set up a business as Novell Associates. He hires Meade, and both agree on terms of employment. The contract is oral and includes a company’s share of income. Meade quits after two years and demands 25 percent of total revenue. Novell only agrees to pay a percentage of the accounts of the last day of the week ( Clarkson & Miller, 2020) . Since the contract was not binding, it would prove extremely difficult to present justice if Novell denies having had a contract. The law may apply to more substantial organizational transaction across domestic and foreign business fields which enter in an oral agreement.
3. Customary international law.
(a) The Law. Under the aspect of customary international law, absolute respect of the norms or peremptory norms associated with rights and duties in mandatory. The law prohibits torture, inhumanity, and degrading treatment of other individuals within and beyond the borders of a country. The courts in the U.S with common- tradition support the monist doctrine that these laws form part of prevailing laws even without the need for any act of incorporation. Actions such as the Foreign corrupt practice prohibits bribery on foreign soil and price-fixing, which could be conducted over a countries border violates the Sherman Antitrust act. The customary universal law hence implicates the principle of custom, which is considered as a prime foundation of international law by the international court of justice, the united nation, jurist, and the member states besides the universal principles of treaties and laws. The customary international law can be viewed as the universal practice recognized as law by the international court of justice. The aspect of the law, therefore, grants relevant rights to all members in or out of international armed conflicts. This is regardless of states that have ratified a treaty replicating the same rights. Customary law is not subject to a few members participating in the international legal process. The customary international law plays a crucial role in resolving ambiguities and is a relevant background for interpretive purposes. In an internal legal process, the customary laws of war could produce direct effects.
( b) Why an understanding of this aspect is important. A business that decides to operate in a given state is directed through the customary international law and hence cannot apply illegal tactics or authorization that is against human rights. All the core human rights are protected, along with the prohibition of systemic racial discrimination and the slave trade. The laws demand responsibility from business organizations and companies that, in most cases, use exploitive means in operation. Therefore, the business would understand the implication that would occur when a consistent gross violation of rights observed.
(c) Example. Refugees alleged to be conscripted under Eritrea national service program accused a Vancouver-based mining company of slavery, torture, assault, and forced manual labor. The plaintiffs were entitled to hard work and spent a long time in scorching the sun's heat. They also claimed subjection to physical assault and threats if they took breaks ( Coletta, 2019) . The company violated customary international laws that were stipulated under the Alien Tort Statute of 1789. The Supreme court rejected the call from the company to dismiss the suit, arguing that the victims would probably be denied a fair trial in Eritrea. Any business that would operate in a similar matter would hence be on the threshold of losing its license and losing trust from the customers.
4. Mixed legal systems.
(a ) The Law . The aspect constitutes direct borrowing from foreign law, where countries look for models of other country's constitutions to develop their laws. Most of the U.S statutes control the conduct of other countries. However, as a general rule, statues of the U.S, which is the majorly replicated model, do not apply abroad unless the laws explicitly state so, based on their agreements. For instance, the British Commonwealth countries have the most advanced practice in applying foreign judgment. In the past, Canada was the significant impact of domestic judgment. However, after the Canadian Charter adoption, the U.S constitution has served as the principal model of other nations' constitutions around the world. However, it is voluntary for the U.S to impose its laws in another country or for the state to adopt the U.S constitution. Foreign precedent is considered when a case is adjudicated; the national legislation is analyzed. The Stored Communication act SCA is obligated to protect electronic communication privacy by the companies offering internet connection. This statute forbids the government from accessing the files without a warrant supported by the probable cause. Since congress passed the statute in 1986 before the spread of the internet, it was not specified whether the statute could apply oversees. The presumption of extraterritoriality is applied in such situations to discern whether the Act applies abroad. The ATS allows the court to take action based on the norms of international law. In the current technologically advanced world, business store a lot of viable information that is not only crucial but confidential for their customers. The international law creates a platform that would enable retrieval of the information form different global destinations.
( b) Why an understanding of this aspect of the law is important. The business is obligated to understand the rule of law that applies within a given jurisdiction. The aspect applies to the business sector that operates on systematic and progressive record keeping. This aspect of the law, through the SCA warrant, ensures that illegal transactions can be traced and tracked down from other countries where the fraudulent individual or organization may attempt to conceal the information. The business may not recover the information lost in a nation where attempts to craft remedy would raise the risk of foreign policy consequences.
(c) Example. A company in the property sector encountered fraudulent business transactions where it was required to pay 102,000 Euros to a supplier overseas. They received an email requesting a change in account details. The transaction was appropriately made through modern electronic mail into the newly instructed account ( Chance, 2019) . The company whose information is already compromised is at high risk of exposing their customers to exploitation. Thus the company would strive to retrieve the mail from the foreign servers in the process of seeking justice. In a situation where the foreign nation involved is not under the ATS of international law, it would prove extremely difficult to retrieve the information and funds.
Conclusion
The aspects of law establish the values and regulations that businesses should follow to avoid penalties or losses associated with misconduct or neglect to the law. They not only allow businesses, organizations, or nations to understand what is expected of them but to set forth transparent platforms in dealings and transactions. These laws restrain governments from infringing on property rights and provides a predictable and peaceful means to solve disputes. It is crucial to note that the international law is characterized by equality of sovereign state and absence of legislature; however, the laws are effective since all nations must obey them without coercion. The obedience arises from the force of fear of appearing unjust among the majority that follows the law. The failure to obey is considered an internationally unlawful act, and sanctions could be used to influence the offending state. The aspects of law thus offer the guidance, direction, and mannerism in which international businesses should be carried out. The law avails a platform where the plaintiff brings another party to a neutral decision-maker regarding the grievance. The primary sources of these international laws are treaties that serve as the origin of IGOs. In the current century, the complexity of international relations is evidenced through the international emphasis on human rights, exceptional economic integration, environmental protection, and threats to peace and security. Customary practices have as well become a rigid part of the corpus of international law. The existence of a law does not hence mean that conflicts are resolved quickly, but instead, the elaborative and constraining state of nature could be increasingly contentious. Developing countries, however, feel uninvolved due to the democratic deficit in the international organization.
References
Chance, B. (2019, August 13). Cyber fraud. Retrieved from Barclaycard International: https://www.barclayscorporate.com/content/dam/barclayscorporate-com/documents/insights/fraud-protection/cyber-fraud-report.pdf
Coletta, A. (2019, January 24). A Canadian company is accused of human rights abuses overseas. Can it be sued in Canada? Retrieved from The Washington Post: https://www.washingtonpost.com/world/the_americas/a-canadian-company-is-accused-of-human-rights-abuses-overseas-can-it-be-sued-in-canada/2019/01/24/8e763642-1feb-11e9-a759-2b8541bbbe20_story.html
Clarkson, K. W., & Miller, R. L. (2020). Business Law: Text and cases . Cengage Learning.
Foster, N. H. (2010). Islamic Perspectives on the Law of Business Organisations I: An Overview of the Classical Sharia and a Brief Comparison of the Sharia Regimes with Western-Style Law. European Business Organization Law Review (EBOR) , 11 (1), 3-34.
