1- Define
Common law, derived from English law and found in England, the United States, Canada, and other countries once under English influence;
Civil or code law, derived from Roman law and found in Germany, Japan, France, and in non-Islamic and non-Marxist countries;
Islamic law, derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states;
A commercial legal system in the Marxist-socialist economies of Russia & the republics of the former Soviet Union, Eastern Europe, China, and other Marxist-socialist states whose legal system centered on the economic, political, and social policies of the state.
Arbitration
A procedure used as an alternative to “litigation” in which parties in …show more content…

In general, jurisdictional clauses, when present in a contract, are honored by the courts. For example, it is not unusual for a court to use the law of another country for its decisions.

However, if the contractual events are not in effect, entered into or executed within the state indicated, courts have been known to disregard the jurisdictional clause & apply different rules in determining what law governs.

Since there is no obligation for the courts to uphold jurisdictional clauses, the parties must be reasonable when adding such clauses, or they are liable to have very limited actual value.

5 - What is the “objective theory of jurisdiction?” How does it apply to a firm doing business within a foreign country?

The question of U.S. sovereignty over its citizens abroad has been dealt with by the “objective theory of jurisdiction” which states that “even if an act is committed abroad, that is outside the territorial jurisdiction of the courts, those courts can nevertheless have jurisdiction over it if this act produces consequences or effects within the U. S.”

This means that an American is always a citizen of the United States & is subject to its laws as interpreted by the U.S. courts.

i.e. only those violations of U.S. laws which “affect our foreign or domestic trade” are considered subject to the U.S. legal system when operations are outside the legal jurisdiction of U.S.