International Business law

& Taxation
Unit No: 01

Introduction to United
Nations
TheUnited Nations(UN) is
anintergovernmental
organizationestablished in 24 October
1945, to promote international cooperation.
A replacement for the ineffectiveLeague
of Nations, the organization was created
following theSecond World Warto
prevent another such conflict.

 Membership to UN is open to any

country that is peace loving and
accepts to abide by the charter of
UN.
At its founding, the UN had 51 member states;
there are now 193.
The headquarters of the United Nations is
situated in Manhattan, New York City.


Its objectives of UN are:
1. To maintain international peace and
security
2. To develop friendly relations
between states.
3. To achieve international cooperation
in solving international problems.

 The UN charter established six main

wings of UN:
1. General Assembly
2. Security Council
3. International Court of Justice
4. Economic and Social Council and
5. Secretariat

 General Assembly :
It is composed of representatives of
all member states, is the UN's central
body, empowered to discuss and
make recommendations on any
subject falling within the scope of the
charter.

 The Security Council :

It isa 15-member body, has primary responsibility for
maintaininginternational peaceand security.
In times of crisis, it is empowered to act on behalf of all
member states and to decide on a course of collective
action that is required.
The charter names five states as permanent members of
the Security Council: China, France, the United Kingdom,
Russia, and the United States (those that were chiefly
responsible for the defeat of the Axis powers in 1945).
The remainingSecurity Councilmembers are elected by
the General Assembly for two-year terms.
In 1991, the UN authorized aUS-led coalitionthat
repulsed the Iraqiinvasion of Kuwait.

 The International Court of Justice :

Itis the principaljudicialorgan of the UN. It consists of 15
judges elected to nine-year terms by the General
Assembly and the Security Council voting independently.
It may not include more than one judge of any
nationality.
The Members of the Court do not represent their
governments but are independent magistrates.
Only countries can be parties and states must accept the
courts jurisdiction.

The Economic and Social Council (ECOSOC):

Itis assigned the task of organizing the UN's work on
economic and social matters and the promotion of
human rights.
The Secretariat :
Itis the administrative arm of the organization.

Legal System
Law is a system of social rules
usually enforced through a set of
structured institutions.
There are three main types of legal
systems in use around the world and
they are:
1. Common law system
2. Civil law system and
3. Theocratic law system

 Common law system:

It evolved in England over hundred of
years. It is now being followed in most
of Great Britain's former colonies,
including US and India.
It is based on tradition, precedent and
custom.
Common law system is more flexible
than other two systems.

 Judges in the common law system have

the power to interpret the law so that it
appeals to the unique circumstances of an
individual case.
In turn each new interpretation sets a
precedent that may be followed in future
cases.
As new precedents arise, laws may be
altered, or amended to deal with new
situations.

 Civil Law System:

It is based on a very detailed set of
laws organized into codes.
When law courts interpret civil laws,
they do so with regard to these
codes.
More than 80 countries, including
Germany, France, Japan and Russia
operate with a civil law system.

 Judges under a civil law system have

less flexibility than those under a
common law system.
Judges in a common law system have
the power to interpret the law, while
judges in a civil law system have the
power only to apply the law.

 Theocratic law system:

In this system, law is based on
religious teachings.
Islamic law is most widely practiced
theocratic law system in the world.

International Law
International Law are the rules accepted by the
countries in dealing with each other.
In other words, it is the body of rules and
principles, formal and informal, operating at
the international level.
It is built around treaties , conventions,
protocols ( Examples -UN Charter, Geneva
Convention, Kyoto Protocol etc ) , customary
laws ( common and civil law) and accepted
norms (UNs Universal Declaration of Human
Rights).

 International Law can be classified

as:
1. Public International Law and
2. Private International Law

 Examples of Public International Law:

1. United Nations Maritime Law
2. International Criminal Law
3. Maintenance of international peace and security
4. Treatment of prisoners
5. International waters
6. Global Environment
7. Outer space
8. Global communication
9. World trade
10.Arms control

 Example of a International Private

Law:
In a divorce case, if one of the couple
were a foreigner, then the foreign
law should be considered by the local
court.
It is a private and foreign individual
versus the state legal system.

 Methods of dispute resolution

between nations:
1. Negotiation
2. Mediation and conciliation
3. Arbitration and
4. Judicial settlement

 Negotiation:
The concerned nations discuss the
issues between them without the
involvement of a third party.
Mediation and conciliation:
A party acts as a mediator between
the nations in dispute.

 Arbitration:
It is a more formal method of dispute
settlement which involves the parties
in dispute agreeing to accept the
decision of the arbitrator, while
(unlike in a judicial court) retaining
some degree of control over the
selection of the arbitrator and the
applicable law.

 Judicial settlement:
The International Court of Justice, also called as
the World Court can decide dispute between
countries.
The countries should agree to the courts
jurisdiction before the court hears the case.
TheInternational Court Of Justice- the
judicialarm of the UN has
noenforcementpower, and can adjudicate only
where both sides agree to abide by itsdecisions.