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Summary Foundations Of Business Law

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The Treaty of Paris established the first of the European Communities in the form of European Coal
and Steel Committee.

Based on treaty of Rome, European Atomic Energy Community and European Economic Community are
established.

European Economic Community – aimed to regulate the rights and duties of individual member states
concerning economic activities.

The treaty of Maastricht established the European Union.

EU comprised three pillars:

- European community
- Foreign and security policy
- Cooperation in judicial and criminal matters

European constitution was rejected by referendums.

The Treaty of Lisbon constructed a single framework, gave EU legal personality.

Initials members of states

1. Belgium
2. Germany
3. France
4. Italy
5. Luxembourg
6. The Netherlands

Current number of members: 27

The founding treaties – primary law

- ECSC Treaty of Paris
- EURATOM Treaty of Rome
- EC Treaty of Rome

Legislation is the secondary source of EU law which is referred to as “secondary legislation”.

Only the European court of Justice has the power to declare EU measures invalid.

Three types of legally binding acts classified as EU legislation:

1. Regulations: they are directly applicable.
2. Directives: are binding as to the objective to be achieved. Member state should implement a
national legislation to reach the objective in a certain timeframe.
3. Decisions: fully binding to those to whom they are addressed. It is commonly used when an
undertaking is considered as acting contrary to EU competition policy.

, Not binding, therefore not classified under legislation but:

- Persuasive authority: recommendations + options

Addressed to member states and set out a view or guidelines on a particular issue.

European court of justice expects that judges take the court of justice’s recommendations into
account when reaching their decisions.

General principles of EU Law

- Proportionality: comes from German Law and implies that a public authority may not impose
obligations on a citizen except that they are strictly necessary or proportionate to the aim that is
to be achieved.
- Legal certainty: covers the aspect of retroactivity (may not be altered once adopted) and
legitimate expectations (EU measures should not frustrate – hayal kırıklığı - the valid
expectations)
- Procedural rights: principles of right to be heard (to the accused person) and of due process
(decision is being derived after the hearing)
- Principle of equality: the treaty of Lisbon includes a charter of fundamental rights that applies
when implementing EU law.

Decisions of the court of justice

European court of justice has built a comprehensive body of case law. It interprets the application of EU
law.

- When a member state’s national court is unsure of an EU law application, they may draft a
preliminary reference which is reviewed by the court of justice which then gives a preliminary
ruling on the question of interpretation and validity of EU law. These rulings can be cited as
“precedent” in all jurisdictions (binding on national court).

Relationship between EU law and national law

Principle of supremacy – reflects the primacy of EU law.

In case of a conflict, EU law overrides national law.

Member states cannot plead (savunmak) force majeure (trying to implement EU law but then national
legislature prevents them) – principle of supremacy revokes (iptal etmek) Member State national law.

The sovereignty of EU law is governed and limited by the principles of conferral (acting within the limits
of what the treaties give it) – its legal authority is regulated by subsidiarity and proportionality.

Principle of subsidiarity – EU will only act in areas which do not fall within its exclusive competence
(yeterlilik) if the proposed action cannot be achieved individually by member states.

Direct applicability – provision is immediately operative in a member state without implementing it into
national law.
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