quarta-feira, 14 de agosto de 2013

State intervention in Brazilian Contracts 1 - Consumer contracts

Today we start a series of posts regarding the State intervention in Contracts in Brazil. In this occasion we will discuss the consumer contracts and bring some concerns that foreign investors should have.

As already mentioned here in the blog, the Brazilian government has an annoying interventionist policy ,and this is specially true when  it comes to consumer contracts. 

Here we have a consumer code (Act nº 8.078/90) that overburdens the seller with all the onus of ´producing evidence (even if the evidence is favorable to the other party). So, be aware: if you are prosecuted, you will probably lose. Ther are special courts specialized in consumer issues, where the veredict is all but unpredictable. 

The consumer code also limits party's autonomy to choose forum for litigation. The consumer's residence has priority. 

Arbitration in consumer agreements is possible, but subject to restrictions.

In this context, if we were to analyze Brazilian contract law (regarding consumers) according to J. Adams and R. Bronsword categories, it would definitively fit the "Consumer-Welfarism" definition, since the brazilian consumer code puts the consumer as a weaker party in the contract.

It is important to stress that any final consumer is protected by consumer law. This means that a huge industry purchasing heavy machinery can claim the same legal protection granted to senior citizens who purchase a tv set. 

Importers and distributor are co-responsible, along with the manufacturer, for consumer liabilities. Thus, you must take care to provide your distributor in Brazil with the adequate tools and resources to solve any technical problem, or to provide replacements.

I will write more about it soon.

segunda-feira, 12 de agosto de 2013

Deadline: Annual Census of Foreign Capitals in Brazil 2013

Just to remember that the deadline for submission of declarations for the Annual Census of Foreign Capital in 2013 closes on August 15th. As posted on the blog on 01/07/13 (Annual Census of Foreign Capitals in Brazil  2013), it is mandatory only for the legal entities resident in Brazil who had:

1) on December 31 last year, stockholders' equity exceeding $ 100 million and simultaneously non-residents direct participation in any amount in their share capital;

2) foreign debt, in the form of short-term trade credits (up to 360 days), equal to or exceeding $ 10 million.

More information:

segunda-feira, 5 de agosto de 2013

Brazilian Law Blog among the top 8 international law blogs in the world

The International Business Development blog has ranked the top 8 international law blogs. e Brazilian Law Blog made it to the list, as the best in Brazil.

It is very gratifying to be in this ranking alongside blogs that have inspired BrazilianLawBlog’s creation, as is the case of China Law Blog (to which I frequently pay my respects).

I started this blog a few years ago and, over time, I realized how it has been a rewarding project. Despite the great events planned for Brazil, the country is, in fact,  little known outside. Writing this blog is an opportunity to provide knowledge about the real Brazil (or about the real legal Brazil) to foreigners, and a way to curb stereotypes.

My sincere thanks to the colleagues from the International Business Development blog and to the readers! We hope this blog continues to be a reference for all of you seeking information on how to invest in Brazil.

For those who want to check out the other blogs listed in the ranking, please click the link: