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Macro!Business!Environment!3!IBMS!
Law!
Summary!
Foundation year IBMS
Fontys University of Applied Sciences
,TABLE OF CONTENTS
CHAPTER 1 WHAT IS LAW AND WHERE CAN WE FIND IT? ................................................... 3
CHAPTER 2 COMPARATIVE LAW AND LEGAL SYSTEMS ....................................................... 6
CHAPTER 3 CONSTITUTIONAL LAW ....................................................................................... 8
CHAPTER 4 THE UNITED NATIONS ....................................................................................... 10
CHAPTER 5 THE BRETTON WOODS INSTITUTIONS ............................................................... 15
CHAPTER 6 REGIONAL ECONOMIC INTEGRATION ........................................................... 22
CHAPTER 7 THE EUROPEAN UNION .................................................................................... 26
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! 2!
,Chapter 1 what is law and where can we find it?
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“just”!behaviour:!Justice,!Opportuness,!and!legal!certainty.!
@! Justice!is!the!moral!conviction!of!a!given!society!expressed!in!law!
@! Opportuness!is!the!expression!of!effectiveness!by!a!given!society!in!law,!a!tool!to!
effectively!regulate!something!in!society!that!needs!to!be!done!
@! Legal!certainty!is!the!expression!of!legality!in!a!give!society!
Law!organizes!just!behaviour!in!a!society.!
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Substantive!Law:!composed!of!legal!rules!that!define!the!content!of!just!behaviour!
(organizing!behaviour)!
Formal!Law:!composed!of!legal!rules!that!maintain!substantive!law!(maintaining!the!
intended!behaviour)!
!
Public!law:!the!law!that!regulates!the!relation!between!a!government!and!its!citizens.!
Private!law:!the!law!that!regulates!the!relation!between!citizen!or!those!who!act!as!citizens.!
!
Constitutional!and!administrational!law:!regulate!the!way!a!state!is!governed!and!the!
fundamental!rights!their!citizens!are!entitled!to.!
!
Private!international!law:!regulate!where!to!settle!a!dispute!under!which!law!and!how!to!
execute!a!verdict.!!
!
Natural!law!approach:!assumes!that!law!emerges!from!nature,!law!does!not!need!to!be!
codified!first!to!be!a!law,!but!already!exists!regardless!its!appearances.!Con!!!Legal!
uncertainty!
Positivists!approach:!assumes!that!law!emerges!from!codified!standards.!Con!!!always!two!
steps!behind!reality!
!
Generally!used!legal!sources:!
@! Codified!standards!
@! The!application!of!law!
@! Legal!writings!and!teachings!
@! Religious!writings!and!teachings!
@! Customary!law!
@! Legal!principles!
!
Legal!Positivism! ! Natural!Law!
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Application!of!law!
Codified!Standard!
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Religous!writings!
Legal!principles!
Customary!law!
Legal!Writings!
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! 3!
,!
A!codified!standard!can!never!be!fully!comprehensive!and!offer!a!clear!solution!to!each!
individual!legal!conflict.!There!is!always!a!need!for!a!certain!room!for!interpretation,!as!we!
saw!in!the!case!‘theft!of!electricity!in!the!Netherlands.’!!Positivists!law!and!natural!law!
approaches!may!also!complement!rather!than!oppose!one!another.!
!
Treaty!(Codified!standard)!
Written!contract!between!two!or!more!states!who!consider!themselves!bound!to!its!
content!relative!to!each!other.!
@! Bilateral!treaty,!two!states!are!party!
@! Multilateral!treaty,!more!than!two!states!are!party.!
@! International!Convention!on!Civil!and!Political!Rights!(ICCPR)!
@! International!Covenant!on!Economic,!Social!and!Cultural!Rights!(ICESCR)!
@! International!Covenant!on!the!Rights!of!the!Child!(ICRC)!
The!signature!of!a!treaty!implies!the!consent!of!the!responsible!negotiator!on!behalf!of!the!
state!to!the!treaty.!
The!ratification!of!a!treaty!implies!the!consent!of!the!responsible!legislator!onn!behalf!of!the!
state!to!the!treaty.!
Monism!is!an!approach!in!law!in!which!it!is!assumed!that!the!content!of!a!signed!and!
ratified!treaty!is!automatically!part!of!the!domestic!legal!order.!
Dualism1is!an!approach!in!law!in!which!it!is!assumed!that!a!signed!and!ratified!treaty!needs!
to!be!transformed!into!domestic!law!first!before!it!forms!part!of!the!domestic!legal!order.!
!
The!application!of!law!
Case!Law!
A!chain!of!authoritative!legal!rulings!in!which!the!same!reasoning!pattern!of!the!court!is!
applied!in!similar!cases.!
Stare1decisis!is!a!legal!principle!in!which!courts!have!to!follow!the!legal!reasoning!as!applied!
in!previous!cases!
The!administration!
The!branch!in!the!public!sector!that!executes!the!law!within!the!boundaries!of!its!
competences!
Margin!of!discretion!
The!room!allowed!to!the!administration!to!execute!the!law!at!their!own!discretion!
!
NonFsecular!state!
A!stat!in!which!governance!and!religion!are!mixed!
Secular!state!
A!state!in!which!governance!and!religion!are!separated!
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Customary!law!
Custom!
A!custom!is!an!established!and!accepted!legal!practice!
Usus!the!practice!must!last!for!a!while!in!a!consistent!way,!it!has!to!become!a!tradition!
Opinion!iuris!sive!necessitates!a!custom!must!be!an!accepted!practice!by!its!users!
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! 4!
,Legal!principle!
A!general!value!that!applies!in!law!
Principle!of!Legality,!reasonableness,!fairness,!good!faith!
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Ius!Cogens!
Universally!binding!legal!principles!
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! 5!
,Chapter 2 Comparative law and legal systems
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Comparing!law!has!five!main!purposes:!
@! Gaining!of!knowledge!
@! Evaluating!the!better!law!
@! Substantiate!the!application!of!law!
@! Improve!legal!education!
@! Unification!of!law!
!
Macro!comparison!
The!activity!in!which!the!main!characteristics!of!legal!systems!are!compared.!
!
Legal!systems!
A!coherent!collective!of!legal!rules!in!which!the!same!hierarchy!of!legal!sources!applies,!
mostly!determined!by!the!boundaries!of!a!state.!
!
Legal!families!
A!group!of!legal!systems!that!share!the!same!basic!characteristics!in!law,!including!at!similar!
hierarchy!of!legal!rules.!
!
Table!2.1!legal!families!and!their!highest!source!of!law!
Legal!family! Highest!source!of!law! Example!
Common!law! Case!law! England!
Civil!law! Codified!standards! France!
Socialist!law! The!administration! Cuba!
Religious!law! Religious!writings! Saudi@Arabia!
Traditional!law! Custom! The!natives!of!Malaysia!
Mixed!systems! Combination! Japan!
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!
Micro!comparison!
The!activity!in!which!the!legal!solution!to!a!social!problem!in!legal!systems!are!compared.!
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Tertium!comparationis!
The!shared!social!problem!to!which!the!compared!legal!solutions!answer.!
!
Praesumption!similtudinis!
The!assumption!that!in!essence!each!society!faces!the!same!social!problems!
!
Legal!solution!to!a!social!problem!!!functionally!equivalent!
The!particular!legal!concept!within!a!given!legal!system!that!solves!the!involved!social!
problem.
! 6!
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Functional!method!in!comparative!law!
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! Tertium!comparationis! Praesumptio!
! (social!problem)! similtudinis!
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! Legal!solution!country! Legal!solution!country!
! A! Legal!solution!country! C!
! B!
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!!!!!!Functionally!equivalent!legal!solutions!
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Chapter 3 Constitutional law
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Constitutional!law!primarily!regulates!the!power!of!state!institutions!and!the!freedom!of!its!
citizens.!
!
Constitutional!law!
Regulates!and!restricts!the!attribution!of!power!within!a!state.!
:! Defines!the!state!
:! Attributes!powers!to!state!institutions,!and!limits!these!powers!to!a!certain!margin!
:! Recognizes!rights!of!the!citizens!of!that!state,!that!can!be!invoked!when!power!is!
abused!
!
Social!contract!
The!right!of!citizens!to!stand!up!against!their!rulers!if!power!is!abused.!
!
Negative!freedom!
One!is!free!to!do!whatever!he!wants,!without!any!interference!
!
Positive!freedom!
As!a!result!of!interference!one!has!the!opportunity!to!better!give!direction!to!his!life!
!
The!way!a!state!uses!the!concepts!of!negative!and!positive!freedom!mostly!defines!the!main!
characteristics!of!how!a!state!is!governed.!
!
Trias!Politica!
The!organization!of!a!state!by!separating!legislative,!executive!and!judicial!powers.!
The$legislature!–!responsible!for!law!making!
The$executive$branch$–!responsible!for!executing!the!law!in!practice!
The$judiciary$–!responsible!in!settling!legal!disputes!
!
State!structure!
The!way!power!is!distributed!amongst!the!entities!of!a!state!
!
Federation$
A!state!that!united!federated!areas!that!are!self:governing!within!the!boundaries!set!by!the!
federation!!!in!order!to!avoid!tensions!between!legislators!of!the!federated!entities!and!
the!federal!legislation,!some!kind!of!constitutional!court!may!be!installed!
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Unitary$state$
A!centrally!organized!state!in!which!all!power!is!vested!in!national!political!institutions!
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Government!system!
The!way!in!which!power!is!distributed!amongst!the!political!!institutions!of!a!state.!
!
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!
Macro!Business!Environment!3!IBMS!
Law!
Summary!
Foundation year IBMS
Fontys University of Applied Sciences
,TABLE OF CONTENTS
CHAPTER 1 WHAT IS LAW AND WHERE CAN WE FIND IT? ................................................... 3
CHAPTER 2 COMPARATIVE LAW AND LEGAL SYSTEMS ....................................................... 6
CHAPTER 3 CONSTITUTIONAL LAW ....................................................................................... 8
CHAPTER 4 THE UNITED NATIONS ....................................................................................... 10
CHAPTER 5 THE BRETTON WOODS INSTITUTIONS ............................................................... 15
CHAPTER 6 REGIONAL ECONOMIC INTEGRATION ........................................................... 22
CHAPTER 7 THE EUROPEAN UNION .................................................................................... 26
!
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!
! !
! 2!
,Chapter 1 what is law and where can we find it?
!
“just”!behaviour:!Justice,!Opportuness,!and!legal!certainty.!
@! Justice!is!the!moral!conviction!of!a!given!society!expressed!in!law!
@! Opportuness!is!the!expression!of!effectiveness!by!a!given!society!in!law,!a!tool!to!
effectively!regulate!something!in!society!that!needs!to!be!done!
@! Legal!certainty!is!the!expression!of!legality!in!a!give!society!
Law!organizes!just!behaviour!in!a!society.!
!
Substantive!Law:!composed!of!legal!rules!that!define!the!content!of!just!behaviour!
(organizing!behaviour)!
Formal!Law:!composed!of!legal!rules!that!maintain!substantive!law!(maintaining!the!
intended!behaviour)!
!
Public!law:!the!law!that!regulates!the!relation!between!a!government!and!its!citizens.!
Private!law:!the!law!that!regulates!the!relation!between!citizen!or!those!who!act!as!citizens.!
!
Constitutional!and!administrational!law:!regulate!the!way!a!state!is!governed!and!the!
fundamental!rights!their!citizens!are!entitled!to.!
!
Private!international!law:!regulate!where!to!settle!a!dispute!under!which!law!and!how!to!
execute!a!verdict.!!
!
Natural!law!approach:!assumes!that!law!emerges!from!nature,!law!does!not!need!to!be!
codified!first!to!be!a!law,!but!already!exists!regardless!its!appearances.!Con!!!Legal!
uncertainty!
Positivists!approach:!assumes!that!law!emerges!from!codified!standards.!Con!!!always!two!
steps!behind!reality!
!
Generally!used!legal!sources:!
@! Codified!standards!
@! The!application!of!law!
@! Legal!writings!and!teachings!
@! Religious!writings!and!teachings!
@! Customary!law!
@! Legal!principles!
!
Legal!Positivism! ! Natural!Law!
!
!
Application!of!law!
Codified!Standard!
!
Religous!writings!
Legal!principles!
Customary!law!
Legal!Writings!
!
!
!
!
!
! 3!
,!
A!codified!standard!can!never!be!fully!comprehensive!and!offer!a!clear!solution!to!each!
individual!legal!conflict.!There!is!always!a!need!for!a!certain!room!for!interpretation,!as!we!
saw!in!the!case!‘theft!of!electricity!in!the!Netherlands.’!!Positivists!law!and!natural!law!
approaches!may!also!complement!rather!than!oppose!one!another.!
!
Treaty!(Codified!standard)!
Written!contract!between!two!or!more!states!who!consider!themselves!bound!to!its!
content!relative!to!each!other.!
@! Bilateral!treaty,!two!states!are!party!
@! Multilateral!treaty,!more!than!two!states!are!party.!
@! International!Convention!on!Civil!and!Political!Rights!(ICCPR)!
@! International!Covenant!on!Economic,!Social!and!Cultural!Rights!(ICESCR)!
@! International!Covenant!on!the!Rights!of!the!Child!(ICRC)!
The!signature!of!a!treaty!implies!the!consent!of!the!responsible!negotiator!on!behalf!of!the!
state!to!the!treaty.!
The!ratification!of!a!treaty!implies!the!consent!of!the!responsible!legislator!onn!behalf!of!the!
state!to!the!treaty.!
Monism!is!an!approach!in!law!in!which!it!is!assumed!that!the!content!of!a!signed!and!
ratified!treaty!is!automatically!part!of!the!domestic!legal!order.!
Dualism1is!an!approach!in!law!in!which!it!is!assumed!that!a!signed!and!ratified!treaty!needs!
to!be!transformed!into!domestic!law!first!before!it!forms!part!of!the!domestic!legal!order.!
!
The!application!of!law!
Case!Law!
A!chain!of!authoritative!legal!rulings!in!which!the!same!reasoning!pattern!of!the!court!is!
applied!in!similar!cases.!
Stare1decisis!is!a!legal!principle!in!which!courts!have!to!follow!the!legal!reasoning!as!applied!
in!previous!cases!
The!administration!
The!branch!in!the!public!sector!that!executes!the!law!within!the!boundaries!of!its!
competences!
Margin!of!discretion!
The!room!allowed!to!the!administration!to!execute!the!law!at!their!own!discretion!
!
NonFsecular!state!
A!stat!in!which!governance!and!religion!are!mixed!
Secular!state!
A!state!in!which!governance!and!religion!are!separated!
!
Customary!law!
Custom!
A!custom!is!an!established!and!accepted!legal!practice!
Usus!the!practice!must!last!for!a!while!in!a!consistent!way,!it!has!to!become!a!tradition!
Opinion!iuris!sive!necessitates!a!custom!must!be!an!accepted!practice!by!its!users!
!
!
! 4!
,Legal!principle!
A!general!value!that!applies!in!law!
Principle!of!Legality,!reasonableness,!fairness,!good!faith!
!
Ius!Cogens!
Universally!binding!legal!principles!
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! 5!
,Chapter 2 Comparative law and legal systems
!
Comparing!law!has!five!main!purposes:!
@! Gaining!of!knowledge!
@! Evaluating!the!better!law!
@! Substantiate!the!application!of!law!
@! Improve!legal!education!
@! Unification!of!law!
!
Macro!comparison!
The!activity!in!which!the!main!characteristics!of!legal!systems!are!compared.!
!
Legal!systems!
A!coherent!collective!of!legal!rules!in!which!the!same!hierarchy!of!legal!sources!applies,!
mostly!determined!by!the!boundaries!of!a!state.!
!
Legal!families!
A!group!of!legal!systems!that!share!the!same!basic!characteristics!in!law,!including!at!similar!
hierarchy!of!legal!rules.!
!
Table!2.1!legal!families!and!their!highest!source!of!law!
Legal!family! Highest!source!of!law! Example!
Common!law! Case!law! England!
Civil!law! Codified!standards! France!
Socialist!law! The!administration! Cuba!
Religious!law! Religious!writings! Saudi@Arabia!
Traditional!law! Custom! The!natives!of!Malaysia!
Mixed!systems! Combination! Japan!
!
!
Micro!comparison!
The!activity!in!which!the!legal!solution!to!a!social!problem!in!legal!systems!are!compared.!
!
Tertium!comparationis!
The!shared!social!problem!to!which!the!compared!legal!solutions!answer.!
!
Praesumption!similtudinis!
The!assumption!that!in!essence!each!society!faces!the!same!social!problems!
!
Legal!solution!to!a!social!problem!!!functionally!equivalent!
The!particular!legal!concept!within!a!given!legal!system!that!solves!the!involved!social!
problem.
! 6!
,!
Functional!method!in!comparative!law!
!
! !
! Tertium!comparationis! Praesumptio!
! (social!problem)! similtudinis!
!
!
!
!
!
!
!
!
! Legal!solution!country! Legal!solution!country!
! A! Legal!solution!country! C!
! B!
!
!
!
!
!
!
!
!
!
!
!
!!!!!!Functionally!equivalent!legal!solutions!
!
, !
Chapter 3 Constitutional law
!
Constitutional!law!primarily!regulates!the!power!of!state!institutions!and!the!freedom!of!its!
citizens.!
!
Constitutional!law!
Regulates!and!restricts!the!attribution!of!power!within!a!state.!
:! Defines!the!state!
:! Attributes!powers!to!state!institutions,!and!limits!these!powers!to!a!certain!margin!
:! Recognizes!rights!of!the!citizens!of!that!state,!that!can!be!invoked!when!power!is!
abused!
!
Social!contract!
The!right!of!citizens!to!stand!up!against!their!rulers!if!power!is!abused.!
!
Negative!freedom!
One!is!free!to!do!whatever!he!wants,!without!any!interference!
!
Positive!freedom!
As!a!result!of!interference!one!has!the!opportunity!to!better!give!direction!to!his!life!
!
The!way!a!state!uses!the!concepts!of!negative!and!positive!freedom!mostly!defines!the!main!
characteristics!of!how!a!state!is!governed.!
!
Trias!Politica!
The!organization!of!a!state!by!separating!legislative,!executive!and!judicial!powers.!
The$legislature!–!responsible!for!law!making!
The$executive$branch$–!responsible!for!executing!the!law!in!practice!
The$judiciary$–!responsible!in!settling!legal!disputes!
!
State!structure!
The!way!power!is!distributed!amongst!the!entities!of!a!state!
!
Federation$
A!state!that!united!federated!areas!that!are!self:governing!within!the!boundaries!set!by!the!
federation!!!in!order!to!avoid!tensions!between!legislators!of!the!federated!entities!and!
the!federal!legislation,!some!kind!of!constitutional!court!may!be!installed!
!
Unitary$state$
A!centrally!organized!state!in!which!all!power!is!vested!in!national!political!institutions!
!
Government!system!
The!way!in!which!power!is!distributed!amongst!the!political!!institutions!of!a!state.!
!
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