International Business Law – Exam Questions
European Business Law - Free movement In European Law
1. How does harmonisation work and why is it important?
Harmonisatie: verschillende processen, regels worden op elkaar afgestemd zodat
ze beter kunnen samenwerken.
= different processes, rules are aligned so they can work better together.
How it works:
1. The adoption of harmonization laws (aannemen)
Harmonisation involves creating consistent laws, regulations, and
standards across EU member states to remove obstacles to trade. This is
done through EU regulations and directives, such as Regulation
2019/515, which ensures the free circulation of goods and products.
2. Mutual Recognition
Harmonisation is based on the principle of mutual recognition, meaning a
product lawfully marketed in one EU country can generally be sold in
another, even if national standards differ.
3. Scope
Harmonisation is limited to essential requirements, focusing on areas
where national rules are not equivalent (niet gelijkwaardig) and create
trade barriers. Examples include toys, machinery, and
telecommunications.
Why it is important:
Consistency
o Provides businesses with the same rules across member states,
reducing legal and regulatory burdens.
Fair competition
o Prevents economic advantages for businesses in countries with less
stringent rules.
Market Access
o Ensures the smooth operation of the Single Market by removing
trade barriers.
Overall goal:
Create consistency of laws, regulations, standards and practices, so that
the same rules will apply to businesses that operate in more than one
member state, and so that the businesses of one state do not obtain an
economic advantage over those in another as a result of different rules.
,2. How does mutual recognition work and why is it important?
Definition
Mutual recognition ensures that goods lawfully marketed in one EU
member state can be sold in another, even if the technical or legal
standards differ between the countries. It is a fundamental concept within
the EU's Single Market and is essential for the free movement of goods and
services.
How it works
Legal basis: It is grounded in articles 34-36 of the TFEU (treaty on the
functioning of the European union) and further detailed in Regulations
2019/515
Businesses can use a mutual recognition declaration (verklaring) to
demonstrate compliance (naleving) with the rules of the country of origin.
Uitleg: een officieel document waarmee bedrijven kunnen aantonen dat hun
producten/diensten voldoen aan de wet-regelgeving
If a member state restricts or denies market access, it must follow a
defined procedure, providing clear reasons and ensuring compatibility with
EU law.
Some tools support the application of mutual recognition by improving
administrative cooperation and providing guidance to businesses.
o ICSMS = Information and Communication System for Market
Surveillance
o Product Contact Points (to provide business with guidance on mutual
recognition)
Why important?
Ensures goods can circulate within the EU without unnecessary barriers
Simplifies trade
o Reduces regulatory burdens and promotes a competitive single
market
Dual Purpose
o Facilitates free movement through technical harmonization across
sectors.
o Guaranteeing a high level of protection of the public interest
objectives (ex: toys, building materials, machines,…)
,3. Explain the free movement of goods and how any limitation will be
legally evaluated?
What?
The free movement of goods is one of the fundamental principles and pillars of
the European Union's (EU) Single Market. They ensures goods can move freely
across member states without barriers. It is essential for the functioning of the
internal market, contributing to trade, economic growth, and consumer benefits.
Prohibition of? (verbod)
The free movement of goods is enshrined in Articles 34 to 36 of the Treaty on the
Functioning of the European Union (TFEU).
These articles prohibit: (you don’t have to explain the articles)
1. Article 34
Quantitative restrictions (for import & export)
o Limits on the number of goods traded are not allowed.
MHEE (Measures Having Equivalent Effect)
o Based on the Dassonville case, the EU Court said that any rule
that directly or indirectly, or even potentially, makes it harder to
trade between EU countries is not allowed.
2. Article 35
Extends this prohibition to exports
3. Article 36
Allows exceptions to the free movement of goods for specific reasons, such
as public health, public security, or protection of cultural heritage, provided
these are not discriminatory or a disguised restriction on trade.
How is this principle enforced? (hoe haalbaar)
The principles ensure smooth trade across EU borders: How?
TFEU (Treaty on the Functioning of the European Union)
o = The EU’s main legal rules
Case law
o Dassonville Case
o Cassis de Dijon Case
o Keck Case
Harmonisation
o Making rules the same across all EU countries
, o The EU has implemented harmonized standards (e.g., Regulation
2019/515) to remove legal and technical barriers. When national
laws differ significantly and hinder trade, harmonization ensures
uniformity across member states.
In summary
The free movement of goods is a core principle of the EU Single Market.
Any limitations imposed by member states on this freedom are subject to
legal evaluation by the European Court of Justice. The ECJ ensures that
such limitations are compatible with EU law and respect the principles of
non-discrimination, proportionality, and the pursuit of legitimate
objectives.
European Business Law - Free movement In European Law
1. How does harmonisation work and why is it important?
Harmonisatie: verschillende processen, regels worden op elkaar afgestemd zodat
ze beter kunnen samenwerken.
= different processes, rules are aligned so they can work better together.
How it works:
1. The adoption of harmonization laws (aannemen)
Harmonisation involves creating consistent laws, regulations, and
standards across EU member states to remove obstacles to trade. This is
done through EU regulations and directives, such as Regulation
2019/515, which ensures the free circulation of goods and products.
2. Mutual Recognition
Harmonisation is based on the principle of mutual recognition, meaning a
product lawfully marketed in one EU country can generally be sold in
another, even if national standards differ.
3. Scope
Harmonisation is limited to essential requirements, focusing on areas
where national rules are not equivalent (niet gelijkwaardig) and create
trade barriers. Examples include toys, machinery, and
telecommunications.
Why it is important:
Consistency
o Provides businesses with the same rules across member states,
reducing legal and regulatory burdens.
Fair competition
o Prevents economic advantages for businesses in countries with less
stringent rules.
Market Access
o Ensures the smooth operation of the Single Market by removing
trade barriers.
Overall goal:
Create consistency of laws, regulations, standards and practices, so that
the same rules will apply to businesses that operate in more than one
member state, and so that the businesses of one state do not obtain an
economic advantage over those in another as a result of different rules.
,2. How does mutual recognition work and why is it important?
Definition
Mutual recognition ensures that goods lawfully marketed in one EU
member state can be sold in another, even if the technical or legal
standards differ between the countries. It is a fundamental concept within
the EU's Single Market and is essential for the free movement of goods and
services.
How it works
Legal basis: It is grounded in articles 34-36 of the TFEU (treaty on the
functioning of the European union) and further detailed in Regulations
2019/515
Businesses can use a mutual recognition declaration (verklaring) to
demonstrate compliance (naleving) with the rules of the country of origin.
Uitleg: een officieel document waarmee bedrijven kunnen aantonen dat hun
producten/diensten voldoen aan de wet-regelgeving
If a member state restricts or denies market access, it must follow a
defined procedure, providing clear reasons and ensuring compatibility with
EU law.
Some tools support the application of mutual recognition by improving
administrative cooperation and providing guidance to businesses.
o ICSMS = Information and Communication System for Market
Surveillance
o Product Contact Points (to provide business with guidance on mutual
recognition)
Why important?
Ensures goods can circulate within the EU without unnecessary barriers
Simplifies trade
o Reduces regulatory burdens and promotes a competitive single
market
Dual Purpose
o Facilitates free movement through technical harmonization across
sectors.
o Guaranteeing a high level of protection of the public interest
objectives (ex: toys, building materials, machines,…)
,3. Explain the free movement of goods and how any limitation will be
legally evaluated?
What?
The free movement of goods is one of the fundamental principles and pillars of
the European Union's (EU) Single Market. They ensures goods can move freely
across member states without barriers. It is essential for the functioning of the
internal market, contributing to trade, economic growth, and consumer benefits.
Prohibition of? (verbod)
The free movement of goods is enshrined in Articles 34 to 36 of the Treaty on the
Functioning of the European Union (TFEU).
These articles prohibit: (you don’t have to explain the articles)
1. Article 34
Quantitative restrictions (for import & export)
o Limits on the number of goods traded are not allowed.
MHEE (Measures Having Equivalent Effect)
o Based on the Dassonville case, the EU Court said that any rule
that directly or indirectly, or even potentially, makes it harder to
trade between EU countries is not allowed.
2. Article 35
Extends this prohibition to exports
3. Article 36
Allows exceptions to the free movement of goods for specific reasons, such
as public health, public security, or protection of cultural heritage, provided
these are not discriminatory or a disguised restriction on trade.
How is this principle enforced? (hoe haalbaar)
The principles ensure smooth trade across EU borders: How?
TFEU (Treaty on the Functioning of the European Union)
o = The EU’s main legal rules
Case law
o Dassonville Case
o Cassis de Dijon Case
o Keck Case
Harmonisation
o Making rules the same across all EU countries
, o The EU has implemented harmonized standards (e.g., Regulation
2019/515) to remove legal and technical barriers. When national
laws differ significantly and hinder trade, harmonization ensures
uniformity across member states.
In summary
The free movement of goods is a core principle of the EU Single Market.
Any limitations imposed by member states on this freedom are subject to
legal evaluation by the European Court of Justice. The ECJ ensures that
such limitations are compatible with EU law and respect the principles of
non-discrimination, proportionality, and the pursuit of legitimate
objectives.
