MANAGING INTERNATIONAL LEGAL ENVIRONMENT Essay Example | Topics and Well Written Essays - 1500 words

MANAGING INTERNATIONAL LEGAL ENVIRONMENT - Essay Example The civil law system is based on a detailed set of legal codes and is adopted in many countries including Japan, France, Germany, among other countries. There is less flexibility in the application of the law because, unlike in the case of the common law system, the judge is limited to applying the provisions of the law as embodied in written codes. It must be noted, however, that the decisions of the courts form part of the jurisprudence of these countries and are also applied in the individual cases brought before the court. The Islamic law system is the most widely applied legal system of theocratic law in the world, and governs nearly all aspects of life in Islamic countries. Its application to business is most commonly known to be in the realm of lending where interest is considered illegal land outlawed by the Koran. The exporter must come to grips with evolving and designing contracts applicable to his commercial situation. Where common law prevails, contracts have to be very detailed with all contingencies spelled out because no written codes can be referenced. However, in civil law systems, contracts can be shorter because many issues covered in such contracts are already covered in the civil code. The exporter has to be sensitive to the differences of legal systems in countries where he exports his goods because in case of a contract dispute, the strength of his position in court can be affected depending on the legal system that obtains. Where international trade transactions result in a dispute, the question raised is always that of which countrys laws apply. For some countries the issue has been resolved with the establishment of the United Nations Convention on Contracts for the International Sale of Goods (CISG), which was adopted in 1980 by ll countries, including the United States, and took effect in 1988. The CISG establishes a