International business law: EMBA-BS Y3 2023-24

State legal system

2–3 minutes

A State legal system is a consistent organisation, comprising notably institutions, laws and regulations , intended to regulate subjects of law. A State legal system applies in a territory, where it provides the structure for regulating the society, maintaining order and resolving conflicts.

Separation of powers

State institutions are generally structured around three powers (branches of government). The legislative power passes laws. The executive power executes the laws (it enforces them). The judiciary adjudicates disputes in accordance with the law.

Hierarchy of norms and hierarchy of courts

In a State legal system, there is usually a hierarchy of norms and a hierarchy of courts.

Hierarchy of norms (normative pyramid)

The hierarchy of norms refers to the ranking of different norms (legal rules) within a particular legal system. The lower-ranking rule must conform to the higher-ranking rule. This principle ensures consistency of norms and respect for the rule of law.

The constitution is the fundamental norm. It constitutes (institutes, creates) the legal system. The constitution is decided and modified by the sovereign. In France, the people are sovereign. In England, Parliament is sovereign.

Laws should comply with the constitution. In a democracy, laws are typically voted by representatives elected by the people (indirect democracy) and rarely directly by the people (direct democracy). In France, laws are voted by two chambers, which make up the legislative power: the National Assembly and the Senate. In England, laws are passed by Parliament. In the United States, laws are passed by the House of Representatives and the Senate, which together make up Congress.

Regulations are adopted by the government. They should comply with laws.

Judges’ decisions are a source of law, particularly in common law systems ( case law ).

Hierarchy of courts

Typically, a lawsuit is brought in a court of first instance. Generally, the decision of this court can be challenged before a court of appeal, which can retry the case in its entirety. The decision of the court of appeal may ultimately be referred to a high court (for example: Court of Cassation in France, Supreme Court in the United States), which will generally judge exclusively legal issues (without a full retrial of the case). The structure and names of the courts can vary from State to State.

The objective of a judicial organisation is to ensure the primacy of the rule of law, the right of litigants to an effective remedy, the consistent application of the rules of law and respect for the hierarchy of norms.

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