Countries with a ________ legal system tend to encourage precise, detailed contracts, whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

Question

Quizplus · Accepted Answer

The two types of legal systems that are commonly discussed in the context of international business are "common law" and "civil law". Common law systems tend to rely on case law and precedent, whereas civil law systems are based on written statutes and codes. In common law systems, the courts have more discretion to interpret contracts and apply the law to specific factual situations. This makes contracts more open-ended and less specific. In contrast, civil law systems tend to be more rigid and rule-based, which means that contracts need to be more precise and detailed to avoid ambiguity. Therefore, option B is the correct answer. The other options do not accurately reflect the differences between legal systems and their impact on contracts.

Countries with a ________ Legal System Tend to Encourage Precise