B LAW 341

BUSINESS
LAW I
SECTION 005
INTRODUCTION TO
International
CONTRACTS,
Law andISSUES &
LIABILITY
INTELLECTUAL
Corporations
TOPIC OUTLINE
I. Human Rights and Sustainability Perspectives
II. US Enforcement of International Law
A. Torture and the Law of Nations
B. Bribery
C. US Govt. Trade Regulation

2017 Daniel R. Cahoy

BUSINESS INVOLVEMENT IN FOREIGN ABUSES
Dodd-Frank Section 1502
Requires public companies to disclose use of conflict minerals
What does it accomplish?
Due diligence: look up where is from
OECD: the guidelines, how I know whether I have look hard enough
If you dont report where it is from, you violate the exchange act
Consequences: conflict mineral,
Only violate the act if you do not tell the public/government
What is the use of it: the consumers can use this information to access
whether like it or not, or whether to go after the company, might put a
pressure on you to support a more sustainable global environment
Transparency for consumers and investors

2017 Daniel R. Cahoy

BUSINESS INVOLVEMENT IN FOREIGN ABUSES
Blood diamond and blood electronics
Support local conflicts by buying the conflict mineral
TIME videos

2017 Daniel R. Cahoy

PURSUING FOREIGN WRONGS IN THE UNITED STATES
Torture Victim Protection Act (1992)
Civil suit against foreign officials for torture or killing
Applicability in terrorism

It doesn'tt allow to sue company or government, or individuals in foreign

countries that engages in torture
Confiscate their personal property they owned in the US

Alien Tort Statute (or Alien Tort Claims Act) (1789)

Jurisdictional statute
Civil action by alien for tort committed in violation of law of nations or US treaty
Law of nations: get pirate in the courts
We can sue people they did in other parts of the world if it violates the laws of the nations
Cant sue government coz
Unclear scope beyond piracy and torture
Are companies subject to jurisdiction?

Unclear about whether u can sue the company or a foreign government

2017 Daniel R. Cahoy

KIOBEL V. ROYAL DUTCH PETROLEUM
Nigerian Residents sued oil,Shell, company for aiding Nigerian government in
committing human rights abuses
Took place in Nigeria
Alleged violation of law of nations
Royal Dutch argues that international law does not make its conduct illegal
Not defined
Court
Presumption against extraterritoriality applies
Prevailing interpretation of Alien Tort Statute incorrect
Must be connection to US
Statute cannot be used to resolve this case

They s
Aginast 3 oil companies to
The presumption against the extraterritoriality
The definition of the
A proposition about suing government
The supreme court stopped hearing. Involving Nigerian people being tortured by the
Nigerain government in behalf of the Dutch Loyal Shell company
US does not have a connection with this abuse. Supreme court dismisses this case. The
power is dramatically reduced.

2017 Daniel R. Cahoy

HOW ABOUT FOREIGN BRIBERY?
Who cares?
Exterritorial application
Foreign Corrupt Practices Act (1977)
Unlawful to bribe foreign official
Exception for grease payments or other permitted fees
Grease payment(is not a bribery): pay a bit more money to make
things faster
Anything can be considered as money, helping you out, free gifts"
Applies to U.S. persons and any company trading on U.S. stock exchange
Including foreign countries that trade in the US
Disadvantage to U.S. companies?
Companies from other countries that do not enforce this rule can still
bribe
OCED Convention on Combatting Bribery
40 voluntary members
They are many countries has the same laws
Criminal Liability
Extradition and legal assistance to members

2017 Daniel R. Cahoy

 ISNT A BORDER ADJUSTMENT TAX
PROTECTIONISM?
AKA Destination-Based Cash Flow Tax
Consumption tax on imports and domestic goods
No tax on exports (consumed elsewhere)
Accompanied by slashed corporate income tax rate (35% to 20%)
Creates more advantages from exports, less from imports
Doesnt it violate GATT? Maybe not.
Not a direct (income) tax only taxes sales
Does not advantage U.S. products over foreign
Preserves most favored nations rule
Does not create greater rebate for exports
Some firms win, some lose
Firms that import pay more
Pass costs on to consumers?

Shift from the corporate income to the sales.

Flat taxes for the imports, no tax for exports
Walmart and targets have more harms compared to companies that produce in the United state
RMK: it doesnt violate GATT rule, not possible for a president to have a huge tax on the border since
have to comply with the international agreements

2017 Daniel R. Cahoy

CERTAIN CRYSTALLINE SILICON PV PRODS.
Solar panels have become an important building component
Popular variety is crystalline silicon photovoltaic (CSPV)
Manufacturers from China and Taiwan have claimed huge percentages of
the market
Lower priced panels
In 2011, American firm SolarWorld files a complaint with the Department of
Commerce
Accusing Chinese and Taiwanese firms of subsidizing and dumping
ITC (2015)
Dumping is selling below cost or below home county price
Subsidies are unfair government support at home
Evidence exists here, with an impact
Domestic firms produce less, yet market is growing
Dumping occurred and countervailing duty is appropriate
countervailing duty: impose an extra tax to make things fair
The WTO allows this kind of agreement: dumping or illegal subsidies
You sue products but not the companies or governments.
The only jurisdiction you have the is the product
CCP: customer and border patrol

2017 Daniel R. Cahoy

U.S. GOVERNMENT REGULATION OF TRADE
International Trade Commission (ITC)(federal agencies)
Quasi-judicial, independent agency
Assesses injury to domestic industries
Intellectual property infringement
Dumping and Countervailing Duties
No damages
Works with International Trade Administration and Customs(investigate)
Department of Justice
Power to enforce antitrust laws against foreign entities
Enforces Foreign Corrupt Practices Act
US Trade Representative (USTR)
Negotiates trade agreements with foreign governments
Multiple other agencies in product segments
Ex: Food and Drug Administration and medicines

United Statesantitrust lawis a collection of federal and state governmentlawsthat regulates

the conduct and organization of business corporations, generally to promote fair competition
for the benefit of consumers

2017 Daniel R. Cahoy

IN THE NEWS
Supreme Court agree on Monday to hear case concerning corporate liability
for the ATC,Arab Bank

2017 Daniel R. Cahoy