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Report on International Business Law

   

Added on  2020-04-15

16 Pages3200 Words66 Views
Running head: INTERNATIONAL BUSINESS LAWInternational Business LawName of the StudentName of the UniversityAuthor Note

1INTERNATIONAL BUSINESS LAWIntroductionThe purpose of writing this report is to explain the application of corporate veil in thecorporate legal environment. It is one of the controversial areas. The concept of corporate veil isapplicable to the public companies which say that the legal person is different from its company.There are many consideration which are regarded while determining the factors whether theCourt can lift up the corporate veil. Solomon vs. Solomon is a famous case for determining thecase for lifting up the corporate veil. Nowadays the above principle is used when there is unjustto the third parties. 1Most of the limited companies apply this rule to separate personality. If thecorporate veil is lifted then the limited liability is lost and the Court may impose personal finesand penalty on the directors and the management of the companies. Different approaches to piercing the corporate veil in each of the relevant jurisdictionsPiercing the corporate veilorlifting the corporate veilis a concept where the legaldecision is taken on both the rights as well as the duties of the companies as well asitsshareholders. A company or a Corporation is treated as a separate legal person, and they areresponsible for the debts that are incurred and is the sole beneficiary of the credit it is owed.Asper the common law, the companies uphold this principle of separate legal entity except in theexceptional situations may "pierce" or "lift" the corporate veil. 1(Ahern, Mike.The Use of Personal Knowledge and Belief by Jurors and Juries. Diss. University ofCanberra,2015).

2INTERNATIONAL BUSINESS LAWTaking a example where the businessman, who was the director has left his position as adirector and signed an agreement where the company will has just left for a period of time2. Heset up a company which was competing with the former company,3, technically it would be thecompany and not the person competing. The Court said that the new company is a sham whichwould still allow the old company to sue the man for breach of the contract.Justification for the different jurisdictional approaches Common Law SystemA country which follows the common law system is typically known to the former Britishcolonies or protectorates, including the United States.Features that common law system include:There is no such written constitution or particular codified laws;The decision made by the Judicial are binding – the decisions are of the highest courtwhich can generally be overturned by the same court or through the legislation4;2Allen, Ronald Jay, et al.Criminal procedure: investigation and right to counsel. WoltersKluwer Law & Business, 2016.3Bedi, Monu. "Unraveling Unlawful Command Influence."Wash. UL Rev.93 (2015): 1401.4Browning, John G. "Voir Dire Becomes Voir Google: Ethical Concerns of 21st Century JurySelection."The Brief45.2 (2016): 40.

3INTERNATIONAL BUSINESS LAWThere is extensive freedom of the contract – There are few provisions that are impliedinto the contract by lawIt is seen that everything that is included is not expressly prohibited by law.A common law system is less of the descriptive or less prescriptive than that of the civillaw system5.Thus the Government may enshrine the protection to the citizens for particularlegislation related to the infrastructure program being contemplated. They may wish to prohibitthe service provider from cutting off the water or electricity supply of bad payers or may requirethat documents related to the transaction be disclosed under a freedom of information act. Theremay also be legal requirements to imply into a contract in equal bargaining provisions where oneparty is in a much stronger bargaining position than the other6.There are very provisions that can be implied into a contract under the common lawsystem – it is therefore important to set out all the terms governing the relationship between theparties to a contract in the contract itself. This results in a contract which is longer in a civil lawcountry.5Cockburn, James Swanston, and Thomas A. Green, eds.Twelve good men and true: thecriminal trial jury in England, 1200-1800. Princeton University Press, 2014.6Coen, Mark, and Jonathan Doak. "Embedding explained jury verdicts in the English criminaltrial."Legal Studies(2017).

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