Textbook Notes (363,381)
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MGCR 382 (35)
John Saba (3)
Chapter 3

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McGill University
Management Core
MGCR 382
John Saba

6/17/2013 2:17:00 PM Chapter 3 Canada uses the public law (the common law approach) and the private law (contracts, wills, property, torts/delicts) uses the common law approach except for Quebec who uses the civil law approach Four legal traditions/systems have developed  Civil law (most prevalent in the world – associated with continental European countries) o Code makes legislature-made law they key source of law. The code includes all general legal principles on a subject/subjects o Case law is a secondary source of law (judges apply code principles to different situations)  Common law (associated with England ) o Court decisions makes judge-made law is the key source of law. It is the principle of judicial precedent (judges are bound by previous court decisions of upper or equal rank courts when deciding a case on a similar issue)  Common law has evolved differently in each country  Manufacturers will be more likely found to be liable for defective products in the US than in the UK or Canada  Religious law o Laws based on the officially established rules governing faith and practice of a particular religion  Examples :  Islamic law spells out norms of behavior  Iran has a group of holy men (mullahs) who determine the legality of different behavior by interpreting the Koran  P.58  Bureaucratic law o Legal system followed by communist countries and dictatorships – it is whatever the country’s bureaucrats say the law is regardless of the formal law of the land o They emphasize: state ownership of property, state rights take precedence over individual rights, loose treatment of property and intellectual property rights  The ability of an IB to manage its operations is compromised by bureaucrats and arbitrary rules Domestically oriented laws Affect both a firm’s domestic operations and the firm’s international operations in 3 ways:  Domestic laws regulate IB activities that originate inside a country’s borders o Government impose laws/regulations on :  Workforce management  Financing operation =s (laws on banking, credit)  Developing and using technology  Domestic laws affect the ability to compete internationally o They may raise the cost of domestic firms resulting in higher prices (products become less competitive) o Examples: environmental laws, health and safety laws, labor laws (benefit packages for labor force)  Domestic laws affect business occurring outside a country’s borders o Firms change their production to techniques to satisfy the importing country’s laws even though the processes are considering legal according to the home country’s laws  Product safety and liability (holds sellers responsible for damage, injury or death caused by defective products) o US, Canada, EU have the toughest product liability laws o Special case – tobacco litigation (many tobacco firms have shifted the production/marketing of cigarettes to developing/emerging market countries)  Marketing and distribution o These laws determine which practices are allowed in advertising, promotion, distribution and consumer protection  Germany forbids comparative advertising  Canada, Finland, France, Norway, New-Zealand forbids cigarette advising on TV  Many countries impose a maximum price that may be charged for
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