Question

IDENTIFY THREE MAIN LEGAL SYSTEMS OF IMPORTANCE TO INTERNATIONAL BUSINESS. COMPARE AND CONTRAST THE THREE MAIN LEGAL SYSTEMS IN DETAIL.

Answer 1

The three important legal systems in global business are:

(a) Common law (Also known as Case law)

(b) Civil law (Also known as Code law)

(c) Religious law (Also known as Theocratic law)

CIVIL LAW	COMMON LAW	RELIGIOUS LAW
1. This law is based on legal precedents, past practices and traditions set by the court through legal legislation, status interpretations and past rulings.	1. This law is based on the extremely comprehensive set of laws that are organized into written rules (codes) which are then used as a foundation for doing business.	1. This law is based upon religious teachings and traditions.
2. This law originated in continental European and was applied to European colonies of imperial power such as Portugal and Spain.	2. Common law originated and evolved in former colonies of England. Most of the English speaking countries operate under common law.	2. This system of law is either explicitly antinomian or legalistic by nature which means that this law is either related to beliefs or based on moral law.
3. Since it is a codified system in the law, it offers less freedom of contract.	3. Owing to lack of codified laws or written communications, anything that is prohibited by law is permitted.	3. Some religions, for example Islam and Judaism are teach the importance for positive law for the society and state whereas religions like Christianity reject this idea considering it unnecessary.
4. In countries following civil law, the judges take the lead in proceedings and establish facts by examining the witnesses	4. In countries following the common law, the lawyers examine the witnesses and then present the case to the judge and then the judge takes the lead.	4. Christian Canon Law, Jewish halakha, Hindu law and Islamic Sharia are examples of religious laws.
5. Countries like Spain, France, Germany etc follow a civil law system.	5. Countries like Australia, New Zealand, United Kingdom, Ireland, India etc follow a common law system.	5. Countries like Iran, Sudan, Yemen etc are some of the theocratic states.