Encyclopedia of Economic Law Journal

Abstract Nowadays, in many countries, couples agree on issues related to divorce, such‌ as alimony and custody, etc., and do not leave the decision to the courts. With this description, divorce can be imagined in two ways; Divorce at the request of one of the parties, either husband or wife, or divorce according to the agreement of the parties. Agreement on divorce is more efficient in terms of economic logic; The parties to the marriage contract agree on all financial and non-financial issues regarding the termination, taking into account their preferences, and finally, the provisions of the aforementioned agreement are announced and enforced through the court order. Agreement on divorce is affected by many factors, the most important of which is the law. One of the desirable roles of family law from the point of view of economists is to provide a platform where couples can agree on the manner and conditions of ending their marital relationship in a fair manner. In this article, by using library sources and using a descriptive-analytical method, we examine the effect of the law on the consensual settlement of divorce.The findings of this study indicate that ambiguities in the laws and judicial practice concerning divorce and its related issues—such‌as mahr, ojrat al-mithl and child custody—increase transaction costs, create opportunities for strategic behavior by the spouses, and hinder the achievement of divorce agreements. Conversely, greater legal clarity and the strengthening of protective mechanisms for the weaker party can facilitate negotiated divorce and lead to more efficient agreements

Abstract The legal structure of cooperatives in the Iranian legal system faces gaps and ambiguities that have created numerous challenges in implementing the rules of governance of cooperatives, especially in the areas of managers’ responsibilities, supervisory bodies, and institutional relations. Despite the passage of several decades since the enactment of the Cooperative Sector Law and its limited amendments, some concepts and executive mechanisms of these companies still lack a clear and efficient legal definition. The main question of this research, conducted with a focus on pathology, is what are the legislative gaps and legal ambiguities in the governance structure of cooperatives, and how can the existing gaps be addressed by providing practical solutions and legislative amendments? This research, using the descriptive-analytical method and with a legal pathology approach, has conducted a comparative and analytical study of existing laws in the field of cooperatives. In this regard, the Cooperative Sector Law of 1991, the Cooperative Companies Law of 1971, and the Law on the Implementation of General Policies of Article 44 of the Constitution have been analyzed. The findings show that the legal structure of cooperatives requires serious review in terms of precisely determining the responsibilities of managers and providing effective guarantees of criminal and civil enforcement against them, determining the legal status of transactions outside the managers' authority, and accurately criminalizing the violations of managers. Also, suggestions have been made, including the extension of the theory of appearance in cooperatives to protect third parties in good faith, legally stipulating that general assembly resolutions are binding on non-member shareholders, and designating a specific authority to cancel the membership of ineligible individuals.

Abstract This study examines the impact of economic inequality on trade dependence in developing countries during the period 2013-2023. Quantitative methods and the vector autoregressive (VAR) model were used to analyze the relationships between variables. Data related to economic inequality and trade dependence were collected from reliable international sources, including the World Development Index (WDI) and economic reports of the central banks of selected countries. In the first stage, long-term relationships between variables were identified using the Johansen cointegration test. Then, the impact of shocks caused by economic inequality on trade dependence was analyzed using instantaneous response functions (IRFs), and variance analysis was used to clarify the contribution of each variable to the fluctuations of other variables. The results of this study show that economic inequality has a significant and significant impact on the trade dependence of developing countries, and this impact may vary depending on the specific economic conditions of each country and the time period studied. By providing scientific and documented results, this study provides valuable insights for economic policymakers so that they can reduce economic inequality and create more sustainable and balanced trade dependence by formulating appropriate policies

Abstract The integration of human rights principles within international economic standards has evolved significantly, particularly in the context of the green economy. The global shift towards sustainable economic practices calls for a deep understanding of how international human rights law interacts with these emerging economic paradigms. A green economy emphasizes sustainable development while ensuring equitable social and environmental outcomes.
The global transition toward a greener economy has emerged as a central pillar in both environmental sustainability and economic policy. A "green economy" is one that seeks to reduce environmental risks and ecological scarcities while ensuring sustainable development without degrading the environment. Central to this transformation is the role of international human rights law, which provides the legal and moral framework for protecting the rights of individuals and communities as the world shifts toward greener economic standards.
The need for a green economy has become more urgent due to challenges such as climate change, environmental degradation, and biodiversity loss. However, this shift is not purely a technical or economic matter; it intersects with fundamental human rights, such as the right to a clean and safe environment. Moreover, the framework of international human rights law helps ensure that this transition is inclusive, equitable, and respects the rights of all people, particularly marginalized and vulnerable communities.
In the context of international economic standards, the alignment of human rights law with green economy goals helps create a legal foundation for integrating sustainability with economic growth. This essay explores how international human rights law influences the green economy within international economic standards, focusing on key principles like non-discrimination, participation, and the right to a healthy environment.

Abstract The determination of the nationality of legal entities has consistently been one of the most controversial issues in international investment arbitration, including proceedings under the ICSID Convention. In this regard, Article 25 of the ICSID Convention, which governs the settlement of international investment disputes, places certain limitations on the scope of claims that may be referred to ICSID arbitration, including those involving corporations. Despite the ambiguities contained in this provision, neither legal scholars nor arbitral practice in the field of international investment disputes have reached a consensus on adopting a single criterion for establishing personal jurisdiction. Instead, different standards have been considered, such as the place of incorporation, the seat of the company, and the effective or dominant control test. The central question of this research is which criterion ICSID tribunals have adopted when confronted with international investment disputes and how the chosen criteria have been analyzed in practice. The findings of this study, based on library research and the note-taking method, indicate that neither scholars nor arbitral practice have settled on a uniform criterion for determining the element of nationality and personal jurisdiction of legal entities in disputes brought under the ICSID arbitration framework. Rather, depending on the circumstances of each case and the interpretation of the relevant bilateral investment treaty, arbitral tribunals have in practice adopted different approaches.

Abstract Contract farming, as one of the modern tools in regulating economic relations between agricultural producers and buyers, plays a significant role in reducing production risks, increasing productivity, and ensuring food security. The findings of this study indicate that this institution is supported in many countries through codified laws and clear legal frameworks, whereas in Iran's legal system, a comprehensive and specific structure for it has not yet been developed. This article, in response to the question of the existing legal gaps in contract farming in Iran, hypothesizes that the absence of codified and transparent regulations has led to reduced legal security for contracting parties, increased disputes, and limited development of this institution. Using an analytical-descriptive method and a comparative approach, this research examines domestic and international regulations and concludes that drafting comprehensive regulations, strengthening legal protections, and leveraging successful global experiences can enhance the status of contract farming in Iran.

Abstract The transformation of the “scientific uncertainty” of climate change caused by human activities into a “clear scientific consensus” following the publication of the Fourth Assessment Report of the Intergovernmental Panel on Climate Change led to the international climate change regime relinquishing a greater share of climate commitments to the private sector. The development of the Guiding Principles on Business and Human Rights and the principles of the United Nations Global Compact led to greater legality and accountability of the private sector in environmental protection. In the case of “Milieu Defense v. Shell”, the Dutch District Court’s reliance on “accepted soft law instruments” alongside climate agreements enabled the court to rule on the need for commercial companies to adhere to climate commitments. This research, using a descriptive-analytical method and using international documents and case law, seeks to answer the question of what responsibilities and obligations commercial companies have in reducing greenhouse gas emissions and adopting mitigation measures? The research results show that in light of new legal developments, including linking the international human rights system with the international climate change system, the soft responsibility of non-state actors (such as commercial companies) regarding climate commitments is becoming legally binding. The research findings show that challenging commercial companies in climate lawsuits due to failure to fulfill climate commitments will force companies to make a green transition. Because facing climate lawsuits will lead to a decrease in stock prices, damage to reputation, reduce credibility, and reduce the incentive for companies to invest in the fossil energy industry.

Abstract One of the most significant challenges host governments face in cases of expropriation involving foreign investments is determining appropriate compensation before international arbitration tribunals. The prevailing use of the discounted cash flow (DCF) method, which accounts for future benefits and costs, often results in substantial financial liabilities for governments. Meanwhile, broad investor protections under investment treaties (e.g., guarantees of fair and equitable treatment, prohibitions on uncompensated expropriation, and the principle of full protection) frequently lead to sizable compensation awards. In contrast, the public interests of host states, particularly in environmental matters, are often overlooked. Adopting a descriptive-analytical method, this article evaluates the legal foundations for holding foreign-invested companies accountable and proposes a framework to reduce government compensation by integrating principles of international environmental law, such as the precautionary principle, polluter-pays, prevention, and sustainable development. Mechanisms like “Appropriate Compensation”, “Partial Compensation”, “Necessity Defence”, and “Environmental Counterclaim”, based on “Police Powers Doctrine” and “Regulatory Expropriation Theory”, could legitimize host states’ environmental measures, mitigate compensation burdens, and rebalance public and private interests within the international arbitration system

Abstract Judicial delays can significantly disrupt economic behavior; however, the impact of an efficient judiciary on the timely resolution of legal disputes has received limited attention in civil law countries. This study aims to predict trial delay duration and the probability of appeal court reversal using data from 210 civil cases filed in Ardabil Province between 2014 and 2024. Data were collected through non-probability convenience sampling. The Barlmann and Christmann (2017) model was tested using an artificial neural network and Bayesian rule-based algorithm. To enhance the model, six structural-functional components were identified from the literature, including electronic litigation, human resources, regulatory framework, judicial process, judicial infrastructure, and the role of governmental and non-governmental institutions. The importance of these components was assessed via a questionnaire using a five-point Likert scale completed by selected plaintiffs. The prediction accuracy of the original model was estimated at 89.99%, while the localized model achieved 94%. Findings indicate that the substantive features of cases and parties, legal citations, and structural-functional components have a significant impact on reducing trial duration and the likelihood of verdict reversal. Compared to the original model, the proposed model offers improved accuracy in predicting judicial delays.

Abstract Given the broader legal implications of bank insolvency compared to corporate bankruptcy, and the necessity to distinguish between bank suspension and general bankruptcy to maintain financial stability, regulatory authorities in various jurisdictions have developed specialized bank resolution frameworks. In Iran, the Banking System Resolution Bill was submitted to the Islamic Consultative Assembly in February 2024, highlighting the need to examine its legal challenges in comparison with other legal systems, particularly the EU and Malaysia, while assessing its compatibility with existing domestic banking laws.

This study employs an analytical-descriptive methodology and library resources to evaluate the bill. The findings reveal that while the proposed resolution framework shows progress, it faces significant legal challenges, including: (1) ambiguity regarding the legal nature of resolution decisions and civil liability of the Resolution Executive Board members; (2) potential conflicts with property rights and contractual freedom principles; (3) lack of clarity concerning the deposit guarantee fund's payment mechanisms; (4) differential treatment of state-owned versus private banks in resolution processes; (5) inconsistencies between resolution and bankruptcy procedures; and (6) unclear resolution methodologies.

For successful implementation, the bill must integrate international best practices with domestic legal requirements. Key recommendations include: clarifying the legal status of resolution decisions, enhancing procedural transparency, ensuring harmony with existing regulations, incorporating Sharia-compliant approaches for liability transfers (as advised by the Central Bank's Sharia Council), and strengthening inter-agency coordination among legislative and regulatory bodies. These measures would significantly enhance the effectiveness of Iran's bank resolution regime while maintaining financial stability and protecting stakeholder rights.

Abstract Today, inventions and innovations hold significant importance. Consequently, examining their various dimensions is crucial for enhancing legal protections. One area that has received comparatively less attention is the issue of patent end. Patent end refers to the termination of the legal validity of the exclusive right to financially exploit the patent and its subsequent entry into the public domain. This phenomenon plays a particularly significant role in the realms of technological development and economic growth. Given the importance of the subject matter, this study seeks to examine the theoretical foundations of patent end to elucidate the significance of such a function within a legal system. Considering the influence of the United States patent system on intellectual property mechanisms, this system has been given special attention in the present research. Employing a descriptive-analytical methodology and emphasizing the historical and economic origins of patent end, this article investigates its theoretical foundations and analyzes the impact of this mechanism on the processes of innovation development and public welfare. Furthermore, it demonstrates that patent end, as one of the key concepts in intellectual property law, plays a crucial role in balancing the interests of inventors with social welfare.

Abstract The reliance of Sovereign Wealth Funds (SWFs) on national revenues and government oversight, on the one hand, and their non-sovereign (commercial) investment methods and models, on the other hand, have led to ambiguity and complexity regarding their legal nature and framework. Amidst this, given the indirect nature of investment in the capital market, the related ambiguities in this domain are greater than in other economic sectors, especially in countries like Iran, which lack specific regulations in this regard. The aim of the present research is to resolve these ambiguities, which is considered a necessary prerequisite for the investment of these funds in the Iranian capital market. Based on the research findings, the provision of capital by the government, management in line with its interests, and playing a role in macro-economic goals place SWFs among Captive Financial Institutions and Private Asset Management Arrangements. Since foreign SWFs are considered professional investors, flexibility should be applied in practice regarding their presence in the capital market and their eligibility for protective regulations, within limits appropriate to the country's economic preferences. This means they should neither face complex procedures like a financial institution nor benefit from special privileges like a retail investor. Furthermore, in Article 4 of the Foreign Investment Promotion and Protection Act (FIPPA), the general term "government-affiliated investment entities" should be used alongside the concept of "state-owned company", and the stipulation "provided that they are not considered sovereign acts" should be added as a condition for the investment of these funds to be deemed private.