Key Aspects of German Business Law (eBook)

Preface 6
Table of contents 7
Glossary of German terms and abbreviations 11
Introduction 25
Overview of the German legal system and its role in light of Germany’s membership in the European Communities 26
Part I How to establish or acquire a business in Germany 30
Recognized forms of business organizations 31
I. Overview of business forms available 31
II. Corporate forms of business organizations 32
III. Partnership forms of business organizations 47
IV. Mixed corporate/partnership organizational forms 53
V. Other business organizational forms 53
VI. Corporate succession and changes of organizational form 54
Establishment of a company or branch office 56
I. Alternative ways of doing business in Germany 56
II. Legal requirements for non-citizens 60
The Acquisition of closely held Companies 62
I. Introduction 62
II. Types of acquisition 62
III. Contract formalities 65
IV. Specific sale considerations 67
V. Restrictions 72
VI. Special considerations for foreign purchasers 73
IX. Conclusion 73
Valuation of business enterprises 78
I. General information 78
II. The productive value of the business enterprise 79
“Pseudo-foreign companies” in Germany - The Centros, Überseering and Inspire Art decisions of the European Court of Justice 83
I. Introduction 83
II. Facts of the cases 83
III. Future prospects 87
IV. Advantages and disadvantages 87
Part II Commercial law 88
The law of contracts 89
I. Introduction 89
II. The coming into being of contracts 90
III. Irregularities in the fulfillment of contracts 94
IV. Changes in the contract 96
V. Different types of contracts 98
General terms of business (AGBs) 102
I. Introduction 102
II. Coverage of §§ 305 ff. BGB 104
III. AGBs in the B2B sector 104
IV. AGBs in the B2C sector 108
V. Legal consequences 112
VI. Control through consumer protection agencies exercised by way of suits filed for discontinuance 113
VII. Suits for discontinuance filed under unfair competition laws 113
Torts 114
I. Introduction 114
II. General requirements for tort liability 115
III. Legal consequence: damage compensation 117
IV. Exemption from liability in the case of compulsory workers’ insurance against accidents on the job and job-related illnesses 118
V. Specific torts as defined by German law 119
Product liability under German and European law 127
I. Introduction 127
II. Product liability law 128
III. The law of tort 133
IV. Law of contract 134
V. Equipment and products safety act 135
Real-estate property law Germany 137
I. Real-estate property 137
II. Real-estate-similar rights 138
III. The purchase and sale of real estate 139
IV. The land register 139
V. Rights to real-estate property 143
The law of bankruptcy and security interests 147
I. Introduction 147
II. Steps leading to the institution of insolvency proceedings/ security interests 147
III. Order of events in the insolvency proceedings 150
IV. Effect of the institution of insolvency proceedings 152
V. The insolvency plan 155
VI. Discharge of remaining debt 156
Unfair competition 157
I. Introduction 157
II. Protective objective and field of application 158
III. General clause and exemplary violations 158
IV. Assertion of claims arising from violations of the laws against unfair competition 162
V. Criminal offenses through breaches of the laws on competition 163
The law of public procurement 164
I. Introduction 164
II. The legal system of public procurement 164
III. Public procurement procedures 170
IV. Remedial rights 174
V. Summary and outlook 177
Distribution agreements 179
I. The law pertaining to commercial agents 179
II. The law pertaining to authorized distributors 190
Private public partnerships 192
I. Introduction 192
II. Starting point 192
III. Participants in a PPP plan 193
IV. Essentials of the legal relationship between the public sector and the private investor 194
V. Outline conditions in Germany 195
VI. Outlook 198
Copyright 199
I. Introduction 199
II. Protection and requirements for protection 200
III. The author 202
IV. Exclusive rights in copyrighted works 203
V. Copyright contract law 205
VI. Limitations 207
VII. Other provisions 208
VIII. Collecting societies 211
IX. Legal protection 211
X. Additional information 213
Part III Labor law 214
Aspects of German labor law 215
I. General aspects 215
II. Sources 215
III. Employment relationships 216
IV. Who is an employee? 217
V. Employment contracts 218
VI. Collective bargaining agreements 219
VII. Conflict of laws 220
VIII. Termination of employment 220
X. Mass dismissals 223
XI. Transfer of a business 223
XII. Employee participation in management 224
Residence and work permit 228
I. Law applicable to foreigners seeking (temporary or permanent) residence in the Federal Republic of Germany 228
Essentials of social security law in the Federal Republic of Germany 240
I. Introduction 240
II. Compulsory contribution and registration 241
III. Compulsory social insurance for employment abroad 242
Part IV Computer law 244
Computer law 245
I. Protection of computer software 245
II. Procedures in the event of an infringement of software rights 249
III. Software and computer contracts 250
Electronic commerce 253
I. Applicable German laws 253
II. German Civil Code (BGB) - law pertaining to contracts 253
Protection of internet domain names 258
I. Introduction 258
II. Overview of the German registration system 258
III. Domain name-grabbing 260
IV. Legal claims 260
V. Outlook 262
Part V Procedural law 263
Enforcement of rights and claims through the courts and arbitration tribunals/ The German attorney fees 264
I. Judicial resolution of disputes 264
II. Use of arbitration tribunals or mediation 270
Principles of the legal regulation of attorney fees 272
I. Obligation to provide advance information concerning costs 272
II. Fee agreements 272
III. Statutory fees 274
IV. Payment of fees 281
Notaries in Germany 282
I. Legal status of the notary 282
II. Duties of the notary 285
III. Validity of the notarized documents 289
IV. The fees of notaries 290
Part VI European law 292
Institutions of the European Community 293
I. Overview 293
II. The sources and the legislation of the European Community 294
III. The European Court of Justice 297
Antitrust law in the European community 305
I. Introduction to the antitrust law of the European community 305
II. The different types of prohibition 305
III. Exemptions to European antitrust laws 310
IV. Sanctions and judicial review 314
Part VII Tax law 315
German tax law 316
I. General remarks 316
II. Taxation of corporations 316
III. Taxation of partnerships 321
IV. Taxation of branches of foreign companies 322
V. Taxation of individuals 323
VI. Value added tax 325
VII. Inheritance and gift tax 327
VIII. Other taxes 329
Part VIII IP 330
The PCT and the enforcement of patents in Europe 331
I. General introduction 331
II. Filing of PCT patent applications 341
III. The international search report 343
IV. The international preliminary examination procedure 352
V. Considerations with respect to enforcement after grant 361
VI. Summary 378
Trademark protection in Germany and Europe 379
I. The profession of patent attorneys in Germany 379
II. Trademark protection in Germany 384
III. Community trademarks 424
IV. Summary 430
List of authors 438