Encyclopedia of Economic Law Journal

Abstract With the development of international trade and disputes, international arbitration has expanded as a method for dispute resolution. One of the main challenges in arbitration is the failure of parties to submit documents and evidence, which can affect the adjudication process. In such cases, arbitral tribunals use the tool of adverse inference to draw conclusions against the non-producing party based on the absence of evidence. This tool allows arbitrators to maintain balance in the arbitration process and prevent potential misuse.
The application of adverse inference is subject to specific criteria, including the existence of prima facie evidence, the non-producing party's access to the documents, the relevance and materiality of the missing evidence, and the party’s awareness of its obligation to disclose the requested documents. However, arbitral tribunals exercise caution in using this tool. Case studies have demonstrated that adverse inference can play a significant role in determining the outcome of a case.
The authority of tribunals to apply adverse inference may have different sources, deriving either from arbitration rules or the inherent powers of arbitrators. This tool is not only effective in the decision-making process but also encourages parties to disclose information, enhancing transparency in international arbitration.

Abstract Transferable Letters of Credit and Back-to-Back Letters of Credit each play a fundamental role in financing contracts where an intermediary acts between the main buyer (applicant) and the supplier. Depending on the circumstances and considerations, in some cases, back-to-back letters of credit, and in others, transferable letters of credit provide stronger protection for the rights of the parties involved in the letter of credit process (applicant, beneficiary, and issuing bank). Transferable letters of credit offer advantages, including lower costs and faster processing, but they also have drawbacks. For instance, they can only be transferred once, and the risk of disclosing information about the main suppliers constantly threatens the first beneficiary (seller). On the other hand, opening back-to-back letters of credit requires more time and expense. However, given its significant flexibility compared to transferable letters of credit and due to their effective role in maintaining the confidentiality of information regarding the main suppliers, they are considered more suitable for some players in international trade. In this article, using an analytical-descriptive method, the advantages, disadvantages, risks, and challenges associated with each of these letters of credit are analyzed and the points of divergence between the Iranian legal system and international regulations in this regard have been examined. It is concluded that, under the current economic conditions of Iran and the existing trade and banking restrictions on Iranian merchants, The use of back-to-back letters of credit is more desirable for expanding exchanges, ensuring commercial security, providing liquidity, and facilitating transactions.

Abstract In the last century, one of the main issues of concern for pension funds has been investment; many governments, realizing the importance of this issue, have established various legal mechanisms in order to protect the assets of pension funds in the investment process. Pension fund investments of any type have specific goals, including economic or social goals, and are mainly determined in each country acts. However, in some cases, funds may face challenges in achieving the goals predetermined in the laws and regulations for various reasons. Given that in the Iranian legal system, pension fund investments have been considered in various acts and regulations, but there are challenges in achieving some goals predetermined in the acts and regulations by pension funds, the current article examines the most important challenges of pension funds in achieving investment goals using a descriptive-analytical method and based on library studies. This article findings show according to documents approved by international organizations and acts and regulations in the legal systems of some countries, fulfilling obligations to insured persons, maintaining the stability of financial resources and profitability are the most important economic goals, and providing a system of payment of benefits commensurate with social dignity and responsible investment are the most important social goals of pension fund investment. In order to achieve them in the face of existing challenges, legal reforms, especially in the field of foreign investment are necessary.

Abstract The legislative authority, through the enactment of the Industrial Property Protection Act, addressed three key considerations: First, Article 150 of the Act repeals the previous Law on Registration of Patents, Industrial Designs, and Trademarks. This represents a clear legislative intent to replace the old framework. Second, Article 72 states that in proven cases of patent infringement, the infringer must compensate all resulting damages, including potential profits that qualify as actual losses. This confirms the compensability of lucrum cessans under Iranian law but only in the context of patent rights. The law does not address the issue of compensating loss of profit in relation to other intellectual property categories such as trademarks or industrial designs. Third, Article 149 provides that a new executive bylaw must be prepared within six months of the law’s enactment. Until then, the bylaw of the repealed law remains applicable unless it conflicts with the new Act. However, as of this writing, the new bylaw has not yet been issued. Article 181 of the old bylaw states that only “actual damages” may be recovered in IP disputes, but it is silent on whether lost profit qualifies as such. This has created theoretical disagreement, opening space for two interpretations. The more convincing view holds that although the legislator is silent about other IP rights, there is no explicit prohibition against the recovery of lucrum cessans. The broader legislative trend illustrated by Article 14 of the Code of Criminal Procedure and Articles 5 and 6 of the Civil Liability Act treats certain and provable loss of profit as compensable. Hence, patent rights should not be treated as an exception among IP rights. Additionally, the principle of non-liability in the absence of legal foundation applies only where there is no legal reasoning at all. Legislative silence does not imply denial of recovery.

Abstract Indemnity Clause is a kind of the transferring responsibility clauses that due to its relevance and increasing importance in terms of risk transfer and division of responsibility in various commercial, service contracts and especially in production contracts has an important position in both of the domestic and International law. Since in most of the world's legal systems the theory of strict liability of manufacturer towards the consumer has been accepted, in this analytical and comparative research the validity of indemnity clause of manufacturer by the consumer in two legal systems of Iran and England have been examined and we reach to this result that Contrary to English law, where the validity of these clauses depend on fair and unfair condition rules, In Iranian law, despite the weakness of the legislator in expressing the clear verdict of these clauses, with the sum of the positions of the legislator in the recent special statutes, it can be said that regardless of the non-opposability of these clauses against any third party, including the third party that is consumer or professional, we should accept a difference among the mentioned indemnity clauses in dangerous and exclusive goods with others.

Abstract Introduction :Economic crimes, as one of the most serious threats to social justice and public trust, have consistently posed a major challenge to Iran’s criminal justice system. Owing to their complex nature, broad scope, and close connection with political and economic structures, these crimes require an efficient and specialized judicial criminal policy. Nevertheless, Iran’s judicial criminal policy faces various challenges that have reduced its effectiveness in preventing and combating economic crimes, thereby highlighting the growing necessity for a comprehensive review of legislative, judicial, and executive approaches. Purpose :It seeks to answer the question of what challenges Iran’s judicial criminal policy faces in dealing with economic crimes, and which of these challenges are of greater significance and more prevalent. Methodology :The present study is conducted using a qualitative methodology, employing questionnaires as the data collection instrument, with data analysis carried out through SPSS software and the Friedman ranking test. Findings :The findings indicate that, from the respondents’ perspectives, the challenges confronting Iran’s judicial criminal policy in relation to economic crimes encompass several major themes, including “challenges related to organization and structure,” “challenges related to the prosecutor’s office,” “challenges related to judicial officers,” among others. The most significant challenge identified by the respondents is the “politicization of criminal justice in confronting economic crimes.” Moreover, each of these challenges comprises related sub-challenges, all of which have been separately identified, analyzed, and examined in detail. Conclusion : In conclusion, it can be stated that Iran's judicial criminal policy regarding economic crimes faces multiple challenges, the most important of which is the 'politicization of criminal justice.' This problem reduces the efficiency of the judicial system and undermines public trust. Other challenges include structural issues, the institution of the public prosecutor's office, and judicial law enforcement officers (law enforcement agents). To improve the situation, a fundamental revision of approaches, reduction of the influence of political factors, and strengthening of specialized and transparent mechanisms are necessary.

Abstract In treaty-based arbitrations, the lack of jurisdiction and the inability to accept the counterclaims of host states are challenges that make the handling of such claims difficult and sometimes impossible. In the discussion of the jurisdiction of the arbitral tribunal, obstacles are found in obtaining the consent of the parties to the arbitration, and in the discussion of admissibility, the reliance is on the factor of the connection of the counterclaim with the claimant's main claim. The arbitrators' approach and interpretation of the applicable treaty terms in establishing the parties' consent and the relationship between the counterclaim and the main claim play a key role in the procedure. The civil procedural laws of various countries, the procedures of major investment arbitration tribunals, and the rules of institutional and ad hoc arbitrations provide for the possibility of counterclaims.The rules or arbitration rules governing counterclaims in treaty-based arbitrations (investor-state arbitrations) are interpreted and applied within the scope of the terms of the investment treaty. This study, by examining opinions, doctrine, arbitration laws, and international rules, attempts to explain and critique the challenges of handling counterclaims and seeks an appropriate approach for each challenge. In investment arbitration, considering the basis of their formation, the text of the arbitration clause contained in bilateral or multilateral investment treaties is the most important source of interpretation and application, and it must be carefully distinguished from each other by adopting a non-strict and flexible approach, establishing the competence and admissibility of the counterclaim.

Abstract The European Union’s Carbon Border Adjustment Mechanism (CBAM), adopted in December 2023, represents an innovative policy to harmonize climate and trade objectives. However, it has faced widespread criticism since its inception. This paper employs a descriptive and analytical approach to critically examine CBAM from two perspectives: international trade obligations and climate commitments. By drawing upon the jurisprudence of the World Trade Organization’s Appellate Body, the article investigates the potential conflict between CBAM and the fundamental principles of the World Trade Organization (WTO), including the prohibition of discrimination and the national treatment obligation. The study highlights how its implementation may place countries lacking robust carbon pricing infrastructure at a trade disadvantage. Additionally, CBAM is analyzed in light of climate obligations and the principle of common but differentiated responsibilities under the legal framework of the Paris Agreement, and its impacts on developing countries are elaborated. The paper concludes by offering strategies to mitigate CBAM’s adverse effects, including enhancing domestic infrastructure, strengthening reporting capacities, and actively participating in international negotiations to achieve a global carbon pricing framework. This study aims to strike a balance between environmental imperatives and sustainable development within the global trade landscape.

Abstract In contemporary societies, public decision-making has been shaped by new mechanisms and strategies. The environmental domain has not remained unaffected by this transformation and, through the emergence of green-oriented instruments and modern technologies, has entered a new stage of public governance. Within this context, green taxation—known as Pigouvian taxation aimed at internalizing negative externalities—goes beyond a mere fiscal instrument and serves as a redefinition of the relationship between the state and citizens in environmental protection. However, the effective realization of this policy is hardly possible without a transparent and equitable framework; otherwise, it may result in social discrimination, neglect of public rights, and a lack of accountability. The Aarhus Convention, as one of the most significant international instruments, provides a framework for transparency, accountability, and public participation in environmental governance, thereby enhancing citizens’ environmental rights and strengthening public oversight over environmental policymaking.
As a country heavily dependent on fossil fuels, Iran faces severe challenges such as air pollution, water scarcity, and climate change. Under such circumstances, the proper implementation of fiscal policies can serve as a tool to reduce inefficient energy consumption, mitigate pollution, and promote sustainable economic development. The aim of this study is to provide a legal analysis of the discursive and regulatory structures related to green taxation in Iran, with reference to the key principles of the Aarhus Convention, and to propose recommendations for strengthening the legal legitimacy of this instrument in the national legislative system. This involves a shift from the current model of “fragmented legislation and administrative enforcement” toward “participatory regulation” in green policymaking.
The key findings indicate that: (i) Iranian law lacks a unified definition of “green tax,” addressing it instead through fragmented instruments such as levies, penalties, and revenues—an ambiguity that prevents clear legal commitments to pollution reduction and earmarking revenues for environmental purposes. (ii) Green taxation in Iran significantly diverges from the Aarhus Convention’s standards of democratic and fair environmental governance: on the one hand, restrictions imposed under the label of “confidentiality” and weaknesses in data disclosure undermine the right of free access to environmental information; on the other hand, there is no formal and transparent mechanism for citizen or civil society (NGO) participation in legislative processes, contrary to the Aarhus emphasis on public involvement prior to adopting environmentally significant decisions. (iii) Whereas the Aarhus Convention guarantees access to justice for individuals and NGOs, in Iran the absence of clear standing for organizations or individuals to bring claims, and the lack of mechanisms to demand urgency in suspending environmentally harmful decisions, create insufficient legal effectiveness.
This descriptive-analytical study shows that although Iran possesses certain initial legal infrastructures, the absence of a clear legal status, institutional framework, and operational procedures prevents green taxation from aligning with the Aarhus Convention’s requirements. By implementing targeted legal reforms and strengthening mechanisms of participation and transparency, green taxation can be effectively and legitimately integrated into the country’s fiscal and environmental governance system

Abstract Following the integration of the economic analysis of law into the U.S. antitrust framework, the European Union experienced a paradigm shift in the late 1990s, heavily influenced by the Law and Economics movement. This transition, widely recognized as the “more economic approach,” prompted the European Commission to recalibrate its competition law objectives. The findings of this research indicate that through this shift, the Commission prioritized market efficiency and consumer welfare, effectively replacing a formalistic, rule-based enforcement mechanism with an effects-based one.
Furthermore, an examination of Iran’s legal framework reveals that despite ongoing efforts, the Iranian Competition Council continues to demonstrate significant shortcomings in operationalizing economic doctrines and methodologies within its decision-making processes. Consequently, this institution necessitates fundamental reforms in its objectives and procedures, guided by the economic analysis of law. Employing a descriptive-analytical methodology, this study explores the evolution and hallmarks of the EU’s more economic approach. Ultimately, it critically evaluates the enforcement of competition law in Iran, offering structural recommendations tailored to the country’s specific regulatory circumstances.

Abstract Digital markets, due to increasing data concentration and the central role of big data in competitive processes, face emerging and complex barriers to entry. Unequal access to vast datasets, along with differences in the ability to analyze and exploit them, creates monopolistic advantages for established firms while imposing significant constraints on market entrants. From this perspective, entry barriers in digital markets are not purely economic; they result from the interplay of technical, behavioral, and structural factors that, alongside legal constraints, hinder the realization of effective competition. This study adopts an interdisciplinary approach to analyze the nature and function of entry barriers in digital markets, examines the role of big data in creating and reinforcing these barriers, and evaluates the legal frameworks capable of mitigating them. The findings indicate that effective regulation of data access and sharing, mandatory technical interoperability among platforms, and support for innovation by start-ups are among the most important legal tools for reducing concentration and promoting competition in digital markets. Ultimately, it is emphasized that a precise definition of entry barriers and the formulation of binding data-related rules can facilitate the achievement of fair competition and sustainable digital markets within the Iranian legal system.

Abstract The expansion of continuous and complex business relationships in supply chains and outsourcing has revealed the limitations of the traditional contractual model, which is primarily based on the ex ante specification of obligations and their formal enforcement. Relational contracts, emphasizing continuity, cooperation, trust, flexibility, and continuous adaptation between the parties, provide a framework for responding to circumstances that cannot be fully anticipated or regulated at the time of contract formation. This study aims to examine the nature of relational contracts and analyze their functions and position in supply chain and outsourcing relationships. Employing a descriptive-analytical method and drawing on library-based sources, the study examines the theoretical foundations of relational contracting, its distinction from classical and neoclassical contractual models, and the conditions and functions of relational contracts in long-term commercial relationships. The findings indicate that relational contracts, as a novel approach to contract law, can enhance the efficiency of supply chain and outsourcing relationships by facilitating continuous adaptation to unforeseen circumstances, strengthening cooperation and information sharing, promoting joint problem-solving, learning, and value creation, and supporting relationship-specific investments. Moreover, the self-enforcing nature of such contracts relies on the future benefits of the relationship, trust, reputation, reciprocal commitments, and the possibility of terminating the relationship.