INTERNATIONAL BUSINESS LAW ASSESSMENT ITEM ONE
a) Define and distinguish between domestic law and (public, private) international business law and explain their interaction.
Definition of Domestic Law
Domestic law is applied within States, in contrary to international law which is applicable between States (Parry et. al., 1986). Domestic law comprises more than the law at a national level, it also applies at the state, provincial, territorial, regional or local level (Bindschedler, Macalister-Smith & Bernhardt, 1992).
Definition of International Business Law
International Business Law is a body of law that applies for international sale transactions (Parry et. al., 1986). A transaction is determined to be international if parties from more than one country are involved in a contract (Bindschedler, Macalister-Smith & Bernhardt, 1992). The United Nations Convention on Contracts for the International Sale of Goods (CISG) represents the principal convention involving international sale of goods (Parry et al., 1986).
Definition of Private International Business Law
A contract that subjects international law and is not concluded between States in their capacity is matter of private international law (Parry et al., 1986). Private law is crucial for international business transactions in order to determine the rights and obligations between the contracting parties as well as the extent of liability if the contract is not fulfilled (Zeller, 1999).
Interaction Domestic Law and International Law
International conventions or customs (international business law) determines contracts over international sale of goods, reliant on the terms of the sale contract (private international business law) (Parry et al., 1986). In default of an international convention, domestic law is applied (Zeller, 1999). The ‘conflict of laws’ determines which domestic law needs to be applied according to the principles of private...