What US laws apply to limit specific business practices in all foreign countries?

Numerous US laws limit specific types of conduct or business activity in foreign countries. Major limitations under US law include the following. 

What is the Antiterrorism and Effective Death Penalty Act of 1996?

This act prohibits doing business with companies that have been linked to terrorism.

What is the USA Patriot Act of 2001 (Patriot Act)?

The Patriot Act prohibits individuals or companies from providing material support to any foreign individual, organization, or company engaging in terrorist activity. Material support may include providing money, assets, information, etc.

Note: The State Department designates certain organizations as providing material support for terrorist activity.

What is the Foreign Corrupt Practices Act (FCPA)?

The FCPA was passed to prevent businesses using bribes to gain an unfair business advantage. The FCPA prohibits a business, its employees, or agents from offering or giving anything of value to a foreign official for the purpose of gaining an unfair business advantage. A foreign official includes government officials, candidates for office, political parties, any person who knows the money will be offered, given, or promised to a foreign official for purposes of securing improper advantage. An improper advantage includes securing additional business, permits, special taxation, or favor in judicial or legislative proceedings. This prohibition applies to all businesses. The FCPA also places accounting disclosure requirements on any company subject to SEC regulations. Companies must keep detailed records that reflect transactions and disposition of assets that are sufficient to provide reasonable assurance that transactions are carried out within managements authorizations. The exception to this rule is that companies may pay officials to perform their routine government tasks. The prohibitive line is that payment cannot go to influence a positive decision for the company from an official empowered to make such decision. Companies may also pay statutory fees to officials or undertake marketing and promotion efforts.

What US Laws Limit Doing Foreign Business?

US laws applicable to business operations may apply to the business foreign operations as well. The concept of applying US laws to businesses or operations outside of the United States is known as extraterritoriality. Example of US laws limiting foreign activity include:

Employment laws - Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act of 1967 apply to US companies carrying on business abroad, as well as companies controlled by a US employer.

Environmental Laws - Environmental laws concerning the handling and disposal of hazardous material may apply to operations abroad.

Tax Laws - US tax laws are extensive and complicated. There is a great deal of interplay between US taxation and foreign business activity.

Antitrust Laws - US antitrust law applies to company activity outside of the United States if such activity has an intended or actual, substantial or foreseeable effect within the United States.

 Foreign Bank Account Reporting - The transfer of funds in excess of $10,000 in or out of the United States must be reported to the US Customs and Board Protection or US Treasury.

The above list of foreign laws limiting specific activities in foreign countries is just a sample of the many laws or regulations that could apply to a company's foreign operations.

Related Topics

• International Law (Intro)

• What is International Law?
• What are the types of international law?
• United Nations
• United Nations Commission on International Trade law
• United Nations Conference on Trade Development
• North Atlantic Treaty Organization
• International Monetary Fund
• Other Economic Development Organizations
• World Bank
• World Trade Organization
• European Union
• What international courts exist and what are their functions?
• What are the methods of carrying on international business?
• What are the legal risks associated with carrying on international business?
• What major international agreements affect international trade?
• When is carrying on business in a foreign country prohibited by US law?
• What is the significance of boycotts between foreign countries?
• What US laws apply to limit business transactions in foreign countries?
• What regulations apply to exports from the United States?
• What are the legal limitations on importing goods into the United States?
• How are private international business agreements generally enforced?
• How do parties determine the rules, location, and method of resolving disputes?