Scenario: Common and Civil Law
Delta Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labour and production costs.The legal department of Delta has raised some issues regarding the two countries which are the top contenders for the new facility.The legal system of Country A is based on civil law,while the legal system of Country B is based on common law.Other than the legal systems of the two countries,all other aspects are virtually identical.Delta's legal experts must determine which system would be the most beneficial to Delta in the long term.
-Which of the following questions would be most important for Delta legal experts to consider when making the decision to choose the civil law system of Country A or the common law system of Country B?

Question

Quizplus · Accepted Answer

The legal system of a country can have a significant impact on how business disputes are resolved. In common law systems like Country B, courts rely on prior court decisions to establish legal precedent, while in civil law systems like Country A, courts rely on legal codes and statutes. This can affect how contractual disputes are resolved, making it important for Delta's legal experts to consider how these disputes would be handled in each country. Options A, B, and D are not directly related to the legal systems of the countries but rather to general business practices or environmental concerns in those countries.