Foundations of Business Law
FHNW BSc Business Administration / International Management (2nd Semester)
FHNW BSc Business Administration / International Management (2nd Semester)
Kartei Details
| Karten | 97 |
|---|---|
| Sprache | English |
| Kategorie | Recht |
| Stufe | Universität |
| Erstellt / Aktualisiert | 02.06.2025 / 02.06.2025 |
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The Civil Law System is the dominant Law System in continental Europe.
Genetic engineering legislation contains also ethical aspects.
Marriage laws prohibiting polygamy (= marriage to more than one person) contain no ethical aspects.
In Common Law, Judicial Opinion by the Supreme Court always overrules Written Law.
Sara and Holger are granted a construction permit for their detached house.
Which area of law is it?
The year after Sara and Holger's wedding, the tax authorities issue a joint tax ruling for Sara and Holger.
Which area of law is it?
The city's tax authorities commission a local cleaning company to clean their offices on a weekly basis.
Which area of law is it?
Sara and Holger get married shortly after moving into their new house.
Which area of law is it?
Kevin is the new owner of a restaurant. He applies for an operating license with the cantonal Office for Labour and Economic Affairs.
Which area of law is it?
Two main elements of legal rules compared to any other rules in society are that legal rules are enforceable by state authorities, and that everyone violating legal rules faces societal sanctions.
The Doctrine of Stare Decisis is a central element of the Common Law system.
Legal precedents are the main legal sources in Civil Law systems.
Tax Law is Private Law as far as natural persons are concerned.
Civil Law and Common Law Systems use the same sources of law, but place different emphasis on their use.
In a general partnership according to Swiss law, the partners have joint and several liability.
Anyone who organizes their business in the form of a sole proprietorship faces the problem of double taxation (Swiss law).
For a business in Switzerland with significant fundraising requirements, the legal form of a Corporation is more appropriate than a General Partnership.
Hans and John are touring Europe as backpackers. They meet by chance in Geneva, Switzerland, and realize that they both are heading for Marseille, France, with a few stops along the way to explore. They decide to buy bicycles for their journey. As Hans is better at negotiating, they decide that Hans will negotiate with the seller of the bicycles. They agree that they will split the cost of the trip equally. John is a trained mechanic, so he agrees to be responsible for any repairs that need to be done during their journey.
Do Hans and John form a business association (Swiss law)? Explain your answer in two to three sentences.
They form an ordinary association (= simple partnership). It is an orally concluded contractual relationship. Hans and John agree to pursue a common goal for a limited - even very short-term - period. Both contribute according to their skills and abilities (Hans: bargaining, John: repair). They share the costs.
Remarks:
a) One legal consequence of an ordinary association is the joint and several liability for obligations (note: no liability for tort, no criminal liability for activities of others).
b) Another form of partnership can be ruled out, as the contractual relationship is clearly short-term, and the legal requirements for another form are not met (e.g. for a general partnership, a registration in the commercial register is mandatory).
For the legal form of a corporation according to Swiss law, what corporate body is never required?
What is a "pass-through entity"?
Linda Muller operates a piano shop in Boston, Massachusetts, as a sole proprietorship. The business is located close to a music school. A professional piano player, Jean-Luc Marshall, is seriously injured when a displayed piano, which one of Muller’s employees had failed to secure properly, falls on him and crushes both of his hands. Marshall claims civil damages from Muller’s shop, for the treatment in the hospital and the loss in income. The claim is succesful.
What are the possible consequences of the liability? a) for the shop and b) for Linda Muller
a) At first, Muller's shop reimburses potential damages with the business assets.
b) If there are not enough business assets, Muller must pay with her private assets, and - worst case - file private insolvency. A sole proprietor faces unlimited liability also with their private assets.
Legal entities can be owners of a Corporation (Swiss law).
The owners of a Corporation are its shareholders. A shareholder can be a natural person or another legal entity, such as a Corporation or an LLC.
For the founding of a General Partnership, you need two or more legal persons.
Only natural persons (individuals) may be founders/partners.
A branch is legally dependent from the main business.
Erna Bucher and Fritz Flury open a shop for the sale of office supply in Aarau. They enter into a written agreement with the following components: As starting capital, Erna brings CHF 240’000 and Fritz CHF 360’000. Profits and losses are to be shared according to the financial participation of each of the two. Both Erna and Fritz are authorized to manage and represent the business. The agreement shall be valid for an indefinite time. They have their business registered in the commercial register.
What legal business form have Fritz and Erna entered into?
Erna and Fritz do not have anything agreed upon, neither orally nor in writing. What would the rules be regarding management (inside the business) and representation (towards third parties) of this business form?
How is a profit of CHF 50'000 being shared between Fritz and Erna (General Partnership with an agreement in plance where profits and losses are to be shared according to the financial participation of each of the two. As the starting capital, Erna brings 240K and Fritz 360K.)?
Fritz and Erna agreed on sharing according to their financial distribution. With no clause in the partnership agreement, it would be according to headcount (fifty-fifty).
Swiss law allows for the immediate termination of an employment relationship, meaning that the employee has the immediate right to stop working, and the employer has the immediate right to stop paying wages. However, immediate termination is only justified if the circumstances are so serious that they do not allow the terminating party to wait until the normal notice period is over.
A foreign employer entering into an employment contract with a Swiss employer does never need a residence permit, as the employment contract itself contains all permits to stay in Switzerland.
Residence permits are subject to a separate procedure.
A contract for an employee who is being sent abroad by their employer, to work for a limited period of time within the same organization in another country, is often called a secondment contract.
The requirements to get a Swiss work permit are the same for all employees coming from an EU member state as well as from an EFTA member state
Employees from an EU or EFTA member states are subject to the Agreement on the free movement of persons. Employees of non-EU/EFTA member states (so-called third states) are subject to more restrictive requirements.
Collective Labour Agreements are laws set up and enforced by labor organizations.
Collective labour Agreements are not laws. They are rules and regulations of a specific industry, negotiated and agreed upon between employers on the one hand and labour organizations on the other hand.
According to Swiss Code of Obligations, an employment contract can generally be concluded orally.
The CO does not require an employment contract to be in writing, although some clauses need to be in writing (e.g. competition clause). However, it is strongly recommended to have a written contract.
The Swiss Code of Obligations contains many requirements regarding an employment relationship. As long as the minimum requirements are met, they may be altered by individual employment contract or internal rules and regulations.
As so often in contract law, individual agreements supersede the law - of course only as long as they adhere to the legal minimum requirements (like for termination periods)
What social insurances are never mandatory when working in Switzerland?
The so-called "Pillar 3" contains both a mandatory insurance (pillar 3a) as well as a voluntary insurance (pillar 3b).
Both pillars 3a and 3b are pension schemes on a voluntary basis. Pillar 3a offers some tax advantages, contrary to Pillar 3b. Pillars 1 and 2 are mandatory.
An employee who works in Switzerland and another EU/EFTA state at the same time is, in principle, subject to the social security systems of both countries.
Under the existing social security agreements, such an employee is in principle subject to the social insurance system of only one country.
Private International Law never applies to criminal law cases.
The parties can agree to arbitrate a dispute. This agreement can be made before or even after a legal dispute arises.
An arbitration clause usually provides for the appointment of one or more arbitrators but never for the application of a specific set of arbitration rules.
