In: Economics
Define what a common law legal system is and identify several countries that have this legal system. Define what a civil law legal system is and identify several countries that have this legal system. Identify some of the differences that relate to marketing between the legal environments of a country that embraces common law as opposed to a country that observes civil law. Cite an example of a situation in which different legal systems created an ethical and legal conflict for a multi-national organization.
Common law legal system is the body of law derived from judicial decisions of courts.In this case if any of the parties disagree to what the case is, common law at the past decisions taken by the court in the similar scenario and apply the same. It is followed in countries like Australia,Bahamas,Fizi,Ghana,India,Ireland,Burma etc.
Civil Law is that body of the system, where the core principles are codified into a referable system serving the primary source of law. It is followed in SriLanka, France, Germany, Greece, Japan, Italy, Spain, South Africa, Zimbabwe etc.
In case of common law,the set legal principles are being followed irrespective of any change in the scenario and all the legal cases referthe past scenario. On the other hand, the Civil law varies the decision taken by the court on a case to case basis.
For example,many American companies like IBM, Kodak, GE,Dupont, GM, Ford have been operating in Germany from the time when Hitler taken over till the World War. They were being confronted with increasing discrimination in terms of racial, ethical and other minority issues. The kind of legal system followed in Germany is different from Ameriaca and thus the conflicts arise. United States follow the Common Law system whereas the Germany follows the Civil Law System.