They didn’t mention a treaty…did they?
I know it is an overused statement, but the world is smaller than ever. Thus it is no surprise that even extremely small businesses will interact with companies outside the United States. Naturally, cross-border relationships bring with them unique legal complexities. A fine example of this thorny issue is the effect of U.S. treaties with other nations.
The Constitution, in it’s Supremacy Clause, tells us that treaties (along with other laws) are the supreme law of the United States. The Supreme Court confirmed that valid treaties override state law several times over the life of our nation, the first case (Ware v. Hylton, 3 U.S. 199) focusing on the post-revolution treaty with England. So, it is well established that, if your business partner’s home nation has a treaty with the U.S., that treaty may have a substantive impact on both how you transact business with that business partner and the subject matter of your business relationship.
So what if treaties override other law, including state law? That’s the kicker for the entrepreneur. The longer you are in business and the closer you are to your attorney, the more familiar (and comfortable) you will become with Wisconsin law. Treaties change that familiarity - new terms and interpretations may be introduced to an agreement, or whole sections of law may be disregarded in favor of the treaty. For example, a given nation may have a treaty with the U.S. that does not obligate any businesses from that nation to follow Wisconsin franchise law and regulations. Normally, failure of a company to meet such requirements is a red flag to an attorney and the business owner, but a proper treaty changes the analysis.
Chris Moander is an independent attorney based in Milwaukee who is passionate about helping growing business navigate the legal waters of Wisconsin.
