City University of Seattle

Classroom Syllabus

MC 555

Legal Systems in the Global Economy

3 Credit Hours

Revision December 2008

Instructor: James S. Caldwell, j.d.

CLASS SESSIONS: 3 & 4, 10 & 11, 24 & 25 January 2009

Required Resources

Schaffer, R., Earle, B. & Agusti, F. (2005). International business law and its environment (6th ed.). St. Paul, MN: West.

Research Paper Stylesheet Guide. (2004). Bratislava: CityUniversity. Available online at <

Access to a personal computer is required. All written assignments must be word-processed.

Legal Systems in the Global Economy

This document provides an overview of the course foundation elements, assignments, schedules and activities. For information about general CityUniversity policies, please see the CityUniversity catalog. If you have additional questions about the course, please contact your instructor.

Notification to Students with Disabilities

If you are a student with a disability and you require course adaptations or accommodations, please contact the instructor as soon as possible.

Course Description

The shift to a global economic environment has created a variety of challenges for modern organizations. As competition increases in established markets, developing new markets overseas has become a strategic alternative for many organizations. The challenges of such a strategy are many, not the least of which are the legal challenges. Legal Systems in a Global Economy is a course designed to explore the legal content of multinational business operations, comparative law and regulation as established in the United States and selected Asian and European nations, and the legal liability in global commerce.

Learning Goals

Upon the successful completion of this course, you will be able to:

1. Evaluate different writers' attitudes, biases, and arguments relating to various topics on international law;

2.Identify the strengths and weaknesses of various methods available for resolving trade disputes;

3.Create alternative courses of action for the parties to international sales transactions in order to avoid litigation;

4.Interpret the role of national institutions and international organizations in international law;

5.Identify and evaluate the various risks associated with international transactions;

6.Assess methods of risk assignment and transfer;

7. Appraise the roles of significant contractual clauses, documents and parties;

8.Assess current international law by applying it to common business problems;

Advocate innovative methods of communication to avoid litigation.

Core Concepts

To achieve the goals of this course, you will need to master the following core concepts:

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Methods of export;
Risks of international business;
Law of treaties;
International court of justice;
Comparative law;
Private international organizations influencing international law;
International codes of conduct;
Economic integration;
European Union legal integration;
Free trade areas;
Jurisdiction/venue;
Choice of law/forum;
Enforcement of foreign judgments;
Arbitration/mediation;
Convention on contracts for the international sale of goods;
Documentary sales;
Shipping terms;
Liability for carriage of goods;
Documentary letter of credit;
Tariffs/non-tariff barriers to trade;
GATT dispute settlement;
Tarrification;
Nondiscrimination/MFN;
National treatment;
Safeguards against injury;
Dumping;
Subsidies;
GATT Technical Barriers to Trade;
GATT Government Procurement;
Section 301;
Customs entry;
Determining the dutiable status of goods;
NAFTA;
Export control;
Agency law;
Advertising law;
Foreign Corrupt Practices Act;
Intellectual property transfer;
Foreign direct investment;
Tax issues;
Currency risk;

42. Labor law.

MC 555 SYL Page 1 19.09.2007

Recommended Supplementary Resources

As a CityUniversity student, you have access to library resources regardless ofwhere and howyou are taking this class. To access the resources that are necessary to complete your coursework and assignments, visit the library menu in the My.CityU portal at

A good place tobegin your research isthroughtheprogram or course resource sections thatprovide links to relevant journals, books, andWeb sites. Searchthe online databases for journal, magazine, and newspaper articles.Articles that are not availablefull text in the library's collection can be requested from other libraries and delivered to you electronically.

Print Resources

The following are professional journals that feature scholarly articles of substantial length on Legal Systems in a Global Economy. These journals are recommended as sources for your assignments.

Harvard Business ReviewColumbia Business Law Review

Academy of Management JournalAmerican Business Law Journal

World Trade MagazineHuman Resource Management

Electronic Resources

The publisher of your textbook has provided a website that includes resources, self-tests, and other information. In addition, the following Internet resources may be of use to you in this course. Please be aware that Web addresses may change from time to time.

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APEC:

European Union:

Findlaw:

U.S. Federal Trade Commission:

World Trade Organization:

Supreme Court Collection:

CISG database:

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Overview of Course Activities and Grading

The grade you receive for the course will be derived using CityUniversity’s decimal grading system, based on the following:

Assignment
Critical Analysis / 40%
Case Analysis / 40%
Final Examination / 20%
TOTAL / 100%

Explanation of Assignments and Grading

Critical Analysis

A critical analysis is an analytical exploration of a journal article or other published work relevant to required course readings and class work. The subject and content of the article should relate directly to concepts covered in the course. You may also draw upon your own personal work experience to analyze the article and develop your argument. The work selected for analysis must have been published in the last three years. You will find recommended journals from which to choose your articles listed under the Recommended Supplementary Resources Section, however you are not limited to these journals

A critical analysis, at a minimum, will address:

1.Relevance of the article to course content (state the chapter in the textbook to which the article is relevant);

2.Analysis of the logic and completeness of the author’s argument (answer all eight of the yes/no questions provided in your “guidelines” handout and state the reasoning for each answer);

3.Analysis of the article’s strengths and weaknesses (identify at least 5 separate strengths and 5 separate weaknesses of the article (for a total of 10) other than those mentioned in #2 above and each strength and weakness should receive its own paragraph and the descriptive word or short phrase should be in bold print);

4.Your logical basis of agreement or disagreement with author’s position stated in the article (student should take a clear stand and either agree or disagree with the author’s position and fully explain the logic behind his position); and

5.Be compliant with the APA format and the student should strive to avoid mistakes in English.

Components of a Critical Analysis

Cover Page

Abstract of the Critical Analysis

Body (4-6 pages, double spaced)

Sources must be cited within the body of the analysis using the American Psychological Association (APA) author/year parenthetical method of documentation

References Page (APA – compliant)

Photocopy of the Selected Article

Grading Criteria for Critical Analysis

Relevance to course content / 10%
Logical analysis of author’s presentation / 30%
Analysis of articles strengths and weaknesses / 30%
Logical basis for agreement and disagreement with author’sposition / 20%
APA compliance/grammar/spelling/punctuation / 10%
TOTAL / 100%

Case Analysis

A case analysis is designed to help you sharpen your analytical skills. The strongest way to analyze a case is to apply a variation of the scientific method. This method of analysis is simply a logical approach that usually includes seven steps:

Step 1: Problem Definition

A case seldom involves one clearcut problem. Your task is to:

determine the symptoms which require immediate attention.
identify the fundamental issues and causal factors giving rise to these symptoms.

It is important to separate the immediate problems from their more basic sources. For example, immediate problems may be a high rate of absenteeism, while the more fundamental issue may be a poor motivational climate. How you define a problem determines how you go about solving it. A shortterm solution for absenteeism is likely to be different from solutions which attempt to deal with motivational climate.

Clearly define your problem in a short phrase. Put the short phrase in bold print.

Step 2: Justification for Problem Definition

In this step you need to review what information you have. You may need to make some inferences to fill in gaps. Clearly label what is inference and what is factual. Do not be afraid to assume, but clearly state the assumptions you are making. You should make assumptions on the basis of your knowledge of what typical managerial practices are like, and they should be consistent with the facts you have about the case. Managerial decisions are always based on limited information. In fact, practicing managers find that many of their decisions must be made quickly on the basis of limited information.

Explicitly address all four information factors contained in the “guidelines” handout from your instructor.

Step 3: List Alternative Courses of Action

Be creative. Jot down ideas as they come to you. List as many ideas as you can, without evaluating them or censoring anything. You can always cross them out later. The point is to let your imagination take over. Each alternative should be numbered and get its own separate paragraph. The descriptive words or short phrase for each alternative should be in bold print in the text. Always include the alternative of “doing nothing”.

Step 4: Evaluate Alternatives

Look critically at the alternatives you came up with in Step 3. Analyze the alternatives regarding their costs, potential benefits and risks. The more examples of costs, potential benefits and risks per each alternative, the higher your grade will be. The benefits must be described as “potential benefits”. Address the quantity level (e.g., high, medium or low) of each cost, potential benefit and risk.

DO NOT ANALYZE ADVANTAGES AND DISADVANTAGES. You will only receive 5 points for this part of the analysis if you do.

Step 5: Review

Reread your notes and think. This may be a good time to let the case sit for a while. Get back to it later when you have a chance to digest all the data.

Step 6: Draw Conclusions, Make Recommendations/Decisions

Select the alternative or alternatives you would recommend and fully explain/justify the logic behind your choice. Include specifics about the implementation of your recommendation: who should do what, when, and how.

Source: Myers, T. & Myers, G. (1982). Managing by communication: An organizational approach.New York: McGrawHill.

Grading Criteria for Case Analysis

Problem definition / 10%
Justification for problem definition (the “information environment”) / 10%
List alternative courses of action
Evaluate alternatives
Recommendations / 15%
30%
25%
APA compliance/grammar, spelling, punctuation / 10%
TOTAL / 100%

Final Examination

You should be prepared to answer a variety of types of questions pertinent to the concepts covered in or suggested by the course materials and assignments. Your instructor may provide you with additional information regarding the content and style of the final examination in this course.

Scholastic Honesty

CityUniversity expects each student to do his/her own work. The University has "zero tolerance" for cheating, plagiarism, unauthorized collaboration on assignments and papers, using "notes" during exams, submitting someone else's work as one's own, submitting work previously submitted for another course, or facilitating acts of academic dishonesty by others. The penalties are severe! A first offense can result in a zero grade for the course and suspension from the University for a quarter; a second offense can result in a zero grade for the course and suspension from the University for two or more quarters; a third offense can result in expulsion from the University. The Policy and Procedures may be found at

In addition to providing your work to the instructor for grading, you must also submit an electronic copy for the CityUniversity archives (unless the work is specifically exempted by the instructor). You will not receive a final grade until and unless you submit this electronic copy. The procedure for submitting work to the archives is to upload it via the website . Files should include the cover page of the work with the student name, instructor name, course name and number, and date. File names should indicate the type assignment, such as “researchpaper.doc” or “casestudy.doc” (student name should not be a part of the file name because the system adds it). All files received into the archives are submitted to plagiarism checking.

Recommended Course Schedule

The following schedule has been provided as a general guide to the course. Your instructor may elect to adjust the outline to meet the unique needs of the class.

Session 1. – 3 January 2009 - Course Introduction and Overview. 3 Basic forms of International Business. When is Passport Not a Passport? Citizenship Laws. The World’s 4 Great Legal Systems. Features of Legal Systems.

Session 2. – 4 January 2009 - 4 ways to resolve commercial disputes. Advantages and disadvantages of arbitration. Risk management. 8 specific risks of international business. Time & distance barriers. Language/cultural barriers. Foreign currency exchange rate control risk. Currency control risk. Commodity transactions to finance sales. Basic contract law. Formation, validity and interpretation of contracts.

Session 3 – 10 January 2009 - . The United Nations Convention on the International Sale of Goods. Trade usages and contract interpretation. Warranties. Disclaimer of warranties. 6 remedies available for breach of contract. Notices of avoidance of contract. Lost profits. Excuses for Non-performance.

Session 4 – 11 January 2009 - . Documents of title. The documentary sale. Bills of lading. Air freight. Risk of loss. Incoterms. “General average” losses on marine contracts.

Session 5 - 24 January 2009. Letters of credit. The “principle of independence” applied to letters of credit. The “four corners” rule. Rule of strict compliance. 7 ways to manage exporter’s payment risk. 3 ways to manage importers’ delivery risk. Insurance policies and the risk of loss of goods. Exclusive supply contracts. Exclusive distribution contracts. Risk of foreign laws and of foreign courts.

Section 6 - 25 January 2009 - . Regulation of local sales representatives. Truth in Advertising laws. Intellectual property.Regulation of the transfer of technology. Regulation of FDI. Managing political risk.

Final exam, due date for papers: To be announced.

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