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3 Int'l Bus. Law. 133 (1975)
Foreign Court and the National Interest, the Effect of Foreign Judgments on Activities in Canada

handle is hein.journals/ibl3 and id is 143 raw text is: International Business Lawyer 1975, VoL 3(0) Printed in Great Britain

Foreign Court and the National
Interest, The Effect of Foreign
Judgments on Activities in
Canada
by Gordon F. Henderson, Q.C., Solicitor, Canada
The upsurge of Canadian Nationalism in recent years has focused attention on the
areas of culture and economics, with special emphasis on the ownership and control
of resources and industry. The widespread impact on our economy of multinational,
foreign-owned, corporations has been realized. It is not always realized, however, to
what extent foreign laws and regulations have an impact on companies doing
business in Canada. This impact can on occasion be very important, especially when
it conflicts with or limits Canada's national or regional objectives.
Because of the close proximity of the United States, the extraterritorial effect
of U.S. decisions has perhaps the most far reaching effects upon Canadian business.
In advising Canadian companies which are subsidiaries of U.S. firms, Canadian
practioners must have regard not only to domestic Canadian law applicable to the
problem, but must also realize that the course of conduct decided upon would also
have to be acceptable in terms of U.S. antitrust considerations.
It is apparent from the case of Zenith Radio Corp. v. Hazeltine Research Inc.
239 F. Supp. 51, 388 F. 2d 25, 395 U.S. 100 that unless the Canadian law requires
a course of conduct in this country, the United States Court may find that the
Canadian activity offends antitrust law of the U.S.A. Accordingly, an activity
carried out in Canada by the United States company, or its Canadian subsidiary,
may be perfectly legal in Canada giving rise to no criminal nor civil right against the
company, can be regarded in the United States by the U.S. Court to be contrary
to the antitrust laws of that country. This can give rise to the claim for treble damages
against the U.S. company as the parent of the Canadian company.
The United States has moved a long way from the position stated by the Chief
Justice of the United States (Holmes, C. J.) in American Banana Co. v. United Fruit
Co. (1909) 213 U.S. 457. The general and most universal rule is that the character
of an act as lawful or unlawful must be determined wholly by the laws of the court
where the act is done.

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