Comprehension and Discussion Questions. 1. Why is the country’s legal system of immense importance to international business? What two categories is international law often divided into?
1. Why is the country’s legal system of immense importance to international business?
- What two categories is international law often divided into?
- What does public international law govern?
- Is it possible for countries (on governmental level) to participate in private-law relationship?
- How is sometimes private international law defined?
- What is the main difference between public international law and private international law?
- What three main areas does the field of conflict of laws consist of?
- What is private international law usually affected by?
Ex. 1. You know that Ukraine has become a member of the United Nations Convention on Contracts for the International Sale of Goods, which is one of the “direct rules” of private international law and is a component of the legal systems of the countries that are party to it.
Read the abstract concerning the purchase contract and express your opinion whether the Convention is always given priority over any other laws and regulations of the countries-member to this Convention:
Abstract
According to Article 1 of the Convention, it applies in the following cases:
| “…to contract of sale of goods between parties whose places of business are in different States when the states are Contracting States [i.e. parties to the Convention]”. | “… в контрактах на продаж товаров, что составляют стороны, которые разместили свои предприятия в странах-учасниках [т.е. странах-учасниках конвенции]”. |
Check yourself:
The Convention takes precedence over other internal legal precepts. This means that if a business in Ukraine signs a purchase contract with a business in Austria, then the Convention is used for coverage of their relationship, and not for example of the commercial codes of Ukraine and Austria. However, the parties to the contract have the possibility of explicitly excluding use of the Convention in an agreement on the decisive legal system.
Vocabulary notes
The United Nations Convention on Contracts for the International Sale of Goods –Конвенция Организации Объединенных Наций согласно Контрактов на международную продажу товаров
purchase contract –контракт купли-продажи
to take precedence –иметь приоритет
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legal precepts –нормы права
commercial code –свод законов
Ex. 2. You are a member of the Ukrainian business delegation. Your main aim is to conclude a purchase contract with your Portugese partner. Is it possible to use the U.N. Convention on Contracts for the International Sale of Goods for this purpose? See Article I of this Convention. It runs:
| “… when the rules of private international law lead to the application of the law of a Contracting state [by agreement of the parties or a collision rule]”. | “… когда нормы международного частного права служат применением права страны-учасницы [согласно с соглашением сторон или колизиею норм]”. |
Check yourself:
This applies even in cases where the parties to the contract do not have their place of business in countries that are party to the Convention. Thus, for example if purchase contract is signed by a business in Ukraine, which is a signatory country, and a business from Portugal, which is not, and a collision rule or agreement by the parties refers to the law of Ukraine, or if neither of the parties to the contract has its place of business in a signatory country but they agree on use of the legal system of a signatory country as the law of a third country, then the Convention is applied, because it is a component of the chosen legal system.
Ex. 3.
Brainstorming
Divide into two groups.
Take a sheet of paper and write down advantages and disadvantages of the collectivist-inclined states legal systems (one group) and democratic states legal system (another group). Time limit is 10 minutes. Appoint a spokesperson from each group who’ll present your decisions.
Vocabulary notes
business –предприятие
a signatory country –страна - участница (Конвенции)
collision rule –колизейная норма
to apply in cases –касаться случаев
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to refer to the law –содержать посылание на закон
chosen legal system –выбранная правовая система
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