Understanding Business and Personal Law

Chapter 27: Sole Proprietorship and Partnership

A Global Perspective

Iceland

Iceland, or as it is officially known, the Republic of Iceland, is located in Northern Europe. It is an island between the Greenland Sea and the North Atlantic Ocean, northwest of England. Iceland was settled by Norwegian and Celtic immigrants during the late 9th and 10th centuries A.D. and possesses the world's oldest functioning legislative assembly, the Althing, established in 930 A.D. Almost everyone speaks fluent English. The Icelanders are an informal people, proven by the fact that their telephone directory lists people by their first name. Iceland is smaller than the state of Kentucky. Ninety-nine percent of the population is literate.

Iceland’s economy is modeled after most of Scandinavia. It is capitalistic with an extensive welfare system, low unemployment, and a relatively even distribution of income.

The government of Iceland is a constitutional republic. The chief of state is the president who is elected by popular vote for a four-year term. The head of government is the prime minister who is appointed by the president. The Cabinet is appointed by the prime minister and approved by the parliament. The parliament, or Althing, consists of 63 members who are elected by popular vote to serve four-year terms.

The legal system is a civil law system based on Danish law. The Supreme Court justices are appointed for life by the president.