LEGAL PROBLEMS IN DOING BUSINESS IN EASTERN EUROPE
Spring Term 1996
Tibor Varady
Department of Legal Studies
CENTRAL EUROPEAN UNIVERSITY


Course Description

I. Introduction

1. The Legal Environment in Eastern Europe
a) An assessment of Soviet Law /before the period of radical changes/
DAVID, Major Legal Systems in the World Today, London l968 - excerpts.

b) Cross-Cultural Aspects of International Business Negotiations /The ABA Guide to International Business Negotiations: A Comparison of Cross-Cultural Issues and Successful Approaches/.

c) "Rechtsstaat" a most elusive aim
BERMAN, The rule of the law and the law-based state /Rechtsstaat/ with special reference to the developments in the Soviet Union - excerpts.

2. East-West: Towards Compatibility and Understanding
a) On the difficulties of understanding each other in East-West communications /remarks by dissident Havel/ V.HAVEL, Anti-Political Politics, in KEANE: Civil Society and the State, London-New York, 1988.

b) The adaptability of East-European contract rules to changing economic environment VARADY, Compensation of Damages under Yugoslav Law in the context of International Disputes - excerpts. /Full text: in "Schadenersatz in Ost-West Aussenwirtschaftsverhaltnissen, Bonn l990, 141-151/.

c) Socialist ownership, socialist contracts and the NBA /Jugoplastika v. Boston Celtics/.

II. Foreign Investment in Eastern Europe

1. Changing Models of Foreign Investment in /Former/ Socialist Countries - a l990 assessment.

2. Selected Provisions from Foreign Investment Statutes
a) Who can be foreign investor?

b) What can be invested?

c) Guarantees for foreign investors.

d) Approval procedure.

e) Currency issues.

3. The Impact of Foreign Direct Investment in Central-Eastern Europe-Assessment Commissioned by the Coca Cola Company.


III. Investment Guarantees and Investment-Related Disputes

1. East-West Investment Guarantee Arrangements
a) Investment Guarantee Agreement between the US and Poland /1989/.

b) Russia-US: Treaty Concerning the Encouragement and Reciprocal Protection of Investment /1992/.

c) The O.P I C.

2. Investment Related Disputes and Methods of Dispute Settlement
a) Note.

b) Clauses on dispute resolution in two joint-venture agreements.

c) Provisions on dispute resolution in the foreign investment legislation of Russia, Belarus, Estonia, Kazakhstan and Albania.

d) Three arbitration cases involving investment disputes and the O P I.C.
d.1. Philip Morris International v. O.P I C. /American Arbitration Association, Award od December 3, 1987/.
d.2. Beckman Instruments v. O.P I C. /American Arbitration Association, Award of February 20, 1988/.
d.3. Revere Copper and Brass Inc. v. O P I.C. /American Arbitration Association, Award of August 24, 1978/.

e) A court decision involving the O P I.C. /Korryv. ITT, 444,F Supp 193
/1978/.



IV. Countertrade

1. Introduction to the problem
a) BINDER, Countertrade-How can the West live with it? /Paper submitted to the 8th Malente Symposium, October 16-18, 1989/.

b) McVEY, Legal Aspects of Countertrade/In KORTH: International Countertrade, Quorum Books, 1987, pp. 83-90/.

2. A UN-Sponsored Guide
Draft Legal Guide on Drawing up Contracts in International Countertrade Transactions: Sample Chapters - excerpts.

3. Three Arbitration Cases Involving Countertrade
a) Countertrade on the basis of a bilateral agreement /Award No. 2930/1982 of the International Chamber of Commerce/.

b) Countertrade on the basis of triangular agreement /Award of June 12, 1989 of the Foreign Trade Court of Arbitration at the Yugoslav Chamber of Commerce/.

c) Another triangular structure /Fiat S.p A, v ONYX, and the Republic of Surinam/.



V. East-West Technology Transfer and the Protection of the Transferee

1. Introduction
a) LEW, International Licensing Contracts /International Trade: Law Practice, Vol. I, Edited by Julian D.M.Lew and Clive Stanbrook QC, Euromoney Publications/.

b) Note.

2. Legislation Aiming to Protect the Transferee
a) Andean Group - 1991 Common Code.

b) The Philippines.

c) The 1985 Chinese Regulations on Acquisition of Technology.

3. Efforts within the World Trade Organization the TRIPs Agreement.

4. A Model Contract on Technology Transfer /shaped by the transferor/.

5. Franchising
a) Introductory Note /from Folsom-Gordon, International Business Transactions, 1995/.

b) A Model Franchising Agreement /shaped again by the transferor/.



CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: April, 1996


Var_BusEE.S96Leg.v2



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