Commercial Laws in Saudi Arabia and the United States

Subject: Business
Type: Compare and Contrast Essay
Pages: 1
Word count: 336
Topics: Business Law

The commercial laws of Saudi Arabia differ from those of the United States in various ways, but they are also similar in some other ways. First, Saudi Arabia’s commercial laws are based on the principles of Sharia laws and the sayings (Shunna) of Prophet Muhammad (Cedar White Bradley Consulting, 2016). The commercial laws in the U.S. are derived from secular and natural laws contained in the constitution and various statutory and state laws. The Contract laws in Saudi Arabia are not protected by civil codes as it is the case in the U.S. (Kaplan, 2007). 

Furthermore, Saudi Arabia commercial laws do not allow the purchase of goods on delayed repayment with additional money to the principal amount because Sharia laws do not allow the imposition of interest. On the other hand, the U.S. allow contracts based on interest payments as long as the two parties agree to the terms of the contract without coercion (Kaplan, 2007). Sharia laws require the ownership of property under contract laws to be transferred immediately from the seller to the buyer; but the U.S. contract laws allow the ownership of the property to remain with the seller until all payments are made.

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The trademark laws in Saudi Arabia do not have express causes of action for trademark infringements. As a result, it is difficult for Saudi Arabia’s trademark holders to bring action against infringements other than direct counterfeit or imitation (Cedar White Bradley Consulting, 2016). On the other hand, the U.S. trademark laws contain causes of action under statutory laws of the Trademark Act 1946 (Kaplan, 2007). The plaintiff may be awarded injunction against further infringement and damages in terms of monetary losses.

Despite these differences, the two laws also have certain similarities. In terms of counterfeits, both laws have similar litigations in which the offender may face civil or criminal action for infringing on people’s property rights. In this case, both statutory and constitutional laws recognize counterfeiting as a serious offence.

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  1. Cedar White Bradley Consulting (2016). Litigation procedures and strategies: Saudi Arabia. Saudi Arabia: Cedar White Bradley Consulting.
  2. Kaplan, D.S. (2007). Trademark Violations: Causes of Action and Remedies. Retrieved from;_ylu=X3oDMTEyNnQ4cHI3BGNvbG8DYmYxBHBvcwMxBHZ0aWQDVUkyQzNfMQRzZWMDc3I-/RV=2/RE=1513000785/RO=10/
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