Iceland Thor Vilbjalmsson*

Iceland (Island), an island in the North Atlantic, King of Norway. Along with Norway, Iceland is an independent republic and a unitary state. came under the Danish King in 1380. It was re­ Iceland was settled in the ninth and tenth centuries cognized as a sovereign state in personal union as a result ofthe Nordic Viking expansion. An in­ with Denmark in 1918 and subsequently became a dependent republic was established about 930. In republic in 1944. 1262-1264 the Icelanders swore allegiance to the

I. CONSTITUTIONAL SYSTEM

I. Nationality cording to art. 2, the legislative power is vested in the parliament (Althing) and the president, the Nationality is regulated by art. 68 of the Constitu­ executive power in the president "and other go­ tion ("No alien may acquire citizenship except by vernmental authorities in accordance with this law") and the Icelandic Citizenship Act no. I00/- Constitution and other laws of the land", and the 1952. The provisions of this statute are based on judicial power in the courts. That this article re­ principles similar to those applicable in Denmark flects the formal rather than the actual situation is and Norway. An alien wishing to be naturalized taken for granted. must send an application to parliament, usually through the Ministry of Justice. As a rule, a three b. The Head ofState is the president, who is chosen or five year residence in the country is a necessary for a period of four years by direct and general requisite. elections. According to art. I 3 of the Constitution "the President exercises his authority through his Ministers". This means that his functions are 2. Territorial Division mostly ceremonial. For the purposes of state administration Iceland is divided into one city (borg, i.e., Reykjavik, the c. The parliament (Althing), estabished in 930, now capital), 13 boroughs (kaupstadir) and I6 rural dis­ has 6o members, elected for a term of four years tricts (syslur). Each of the rural districts is divided by Icelandic citizens who are 20 years or older. into counties (hreppar), 212 in all. The Keflavik. The government has unlimited power to dissolve Airport area has a special status, which makes it in the Althitzg and call new elections. After each elec­ fact a borough. tion the Althing nominates 20 ofits members to sit For the purpose of local government the divi­ in the Upper Chamber (efri deild), the remaining sion is much the same; one city, I 3 boroughs and 40 sitting in the Lower Chamber (nedri deilJ). 212 counties. The rural districts are composed, in Bills can be introduced in either chamber by indi­ this respect, of a number of counties and number vidual members, by a standing committee of the 2 3 in all, as 7 of the above mentioned are divided chamber and by the government. A bill is first for local government. The Keflavik Airport con­ read three times in each chamber. If the second stitutes a part of the surrounding counties in this chamber amends it, the bill is read once again in connection. the chamber where it was originally introduced. Ifit is amended there again, it goes to the second chamber once more and bas a fourth reading there. 3· State Organs If in these eight readings the chambers do not a. The general structure is laid down in the Consti­ agree, the bill is read once in the United A/thing. tution, which states in art. I that "Iceland is a re­ The budget as well as most motions for a resolu­ public with a parliamentary government". Ac- tion are dealt with in the United Althing. Accord-

*Professor, Faculty of Law, University of Iceland, Reykjavik. National Reports 1-2 II ing to art. 28 of the Constitution, the president of 4· Judiciary the republic may issue provisional laws between sessions of the Althing. (See the Supreme Court of Iceland A 57/1962; General Act on Civil Procedur .ctF~o. . . em ust d. The government, nominally headed ~y the ~~e­ Instanc/e no. 85d19th36;I c~~al Procedure Act sident of the republic, is led by the cabmet muus­ no. 82 _ 19~1; ~ . ? er 1egiSlatlon). In each of the ters, who act personally, not as a body. The Cen­ 3I temtonal divtStons (supra 2) there are fiv ty tral Government Act no. 73/1969 regulates the of courts offirst instance: the Town Courte pesth organization of the central g~vemment, which "Spea 'al SeSSlon · " m· th e rural districts the Shor riff' e Court (for execution of judgements 'in civile 5 consists of 13 ministries. Councils ofstate are held . . . . ) th cases, for formal decisions, and cabinet meetings, pro­ selZUCes, mJunctlons, etc. , e Probate Court th vided for in the Constitution, are held for discus­ Court of Auctions and the Criminal Court ,The same judge usually sits in all these courts sions which are of political and not of legal im­ o~ts'de1 portance. By statute or presidential decree it may the capital, Reykjavik. Among other courts f be ordered that certain affairs be decided by the frrst instance are 14 Maritime and Commerchl cabinet as a whole, and there are a few examples C?urts, where.the regular judge of the district sits of this. The cabinet cannot remain in office if a wtth two lay Judges who are specially qualified motion ofno confidence is passed by the Althing. Othe~ise the judg~, who is a lawyer and appoint~ While in office, the cabinet has in fact a leading ed for life, usually stts alone. On special occasions position in parliament, where the ministers are when the case has technical points, he is required political leaders and where the government takes to appoint two specialists to sit with him. They the initiative in most legislation. The state adminis­ can overrule the regular judge. There are no tration is in principle subordinated to the minis­ juries. - Practically all decisions of the lower ters, but there are a number of semi-autonomous courts can be appealed to the Supreme Court of directorates, some of them headed by boards of Iceland, which can rule both on fact and law. It is directors elected by parliament. composed of five judges who hear all cases in plenum. Outside the general court system are the e. The territorial authorities are of two types: those High Court ofState, which rules on impeachment of the state administration and the local authori­ of cabinet ministers, and the Labour Court, that ties. The latter are led by councils elected for deals with cases Wlder the Act on Trade Unions terms of four years in the city, boroughs and and Labour Disputes no. 80/1938. There are no counties. The division of power between the state special administrative courts, but the general administration and the local authorities is some­ courts may judge the legality of administrative what complicated, but the latter are in fact ofcon­ acts. - The public prosecution is with a few excep­ siderable importance, especially in the larger mu­ tions carried out by the State Prosecutor or his nicipalities. deputies.

II. SOURCES OF LAW

The Constitution came into force on 17 June 1944. general principles of law and the "nature of the It has been amended twice, in 1959 and 1968. case". Icelandic courts have much the same atti­ Other statutes are mostly of recent origin, al­ tude towards these sources as Danish and Nor­ though the oldest in force is from 1275. The legal wegian courts. Neither legal writings nor inter­ system is a branch of the Scandinavian or Nordic national law are regarded as sources of Icelandic system, and forms together with the Norwegian law, although it is clear that they in fact infiuence and Danish systems the Western-Scandinavian court decisions. legal system. There are no codes, but comprehen­ The courts have on some occasions declined to sive statutes have been developed in certain areas. enforce statutes on the ground that they are un­ Statutes on very limited subjects also exist. - constitutional. Delegated legislation has often Delegated legislation is important (regulations, been declared void as not compatible with the decrees, etc}. It is as a rule issued by a minister, statute on which it has been based. but often originates with local authorities. All statutes in force are published approximate­ Other sources of law generally recognized in ly every tenth year by the Ministry of Justice in Icelandic legal theory are custom, precedent, the the Lagasafn (Law Collection). New legislation is, IV Iceland l-3

before entering into force, published in the some government regulations as well as other Stj6rnartldindi (Government Gazette). Part A con­ official announcements (appointments, bankrupt­ tains mainly statutes passed by the Althing, part B cies, auctions, etc.). All judgements ofthe Supreme delegated legislation. There is also a part C con­ Court and the Labour Court are published in taining new international treaties. annual reports called respectively Haestarettard6mar The Logbirtingablad (Official Gazette) prints and Damar Felagsd6ms.

III. HISTORICAL EVOLUTION

Laws of the old Icelandic Republic are found in mixed with Danish and Norwegian law to a con­ manuscripts that bear the common name Gragtfs siderable degree, especially from about 1700 up to (The Grey Goose). They are Germanic in origin the nineteenth century. The separate identity of and the most detailed old Germanic laws now Icelandic law was reinforced when the Althing known. New codes were enacted after Iceland regained legislative power in home affairs in 1874, came under the King ofNorway: ]tfrnsfda in 1271, when Iceland was given a special minister residing superseded already in 1281 by ]6nsb6k. This in in Reykjavik in 1904, and when its own Law turn was gradually replaced through the cen­ School was established in 1908. It became a faculty turies by individual statutes and custom, although in the University ofIceland when this was found­ a few ofits provisions are still in force. Iceland has ed in 19II. always had its own national law, although it was

IV. PRIVATE LAW

Private law in Icelandic legal theory is one of the take the name of her husband when they marry. two categories of internal law, the other being public law. Commercial law is not a category by 2. Family Law itself, but rules on commerce are an integral part ofprivate law. As mentioned above, Icelandic law Family law is to a large extent based on inter­ and jurisprudence arc closely related to those of Nordic legislative drafts. The main statutes are: the other Nordic countries. Many important sta­ Act on Marriage and Dissolution ofMarriag e no. tut~ on private law have been drafted by inter­ 60/1972; Act on Duties and Rights of Spouses Nordic committees and then enacted in the differ­ no. 2o/1923; Act on Relations of Parents to Legi­ ent countries, often with certain modifications. timate Children no. 57/1921; Act on Relations of Parents to Children Born out of Wedlock no. 87/1947; and the Adoption Act no. 19/1953· The I. Law of Persons main principles ofthis legislation, among them the The main statute on the law of persons is the Legal special Nordic system of joint property, are dealt Competence Act no. 95/1947 which, as amended with in the chapters on Denmark and Norway. It in 1967, decrees that a person is a minor until the may be noted that in Iceland both separation and age of 20 or until marriage, if this occurs earlier. divorce are almost always granted by administra­ Ability to decide on domicile and work is acquired tive acts, but it is legally possible to obtain divorce at 16. The statute does not deal with legal entities, by going to court. Separation is granted in practi­ but this concept is used as in Denmark and cally all cases, even if only one of the spouses Norway.- Rules on names are a part ofthe law of applies for it. persons. The Persons' Names Act no. 54/1925 states that every child shall be given one or two 3· Inheritance names and also called after his father or his mother {the latter is in practice never done). This is done Inheritance is dealt with in the recent Inheritance by adding son or daughter (son or d6ttir) to the Act no. 8j19(52, which is Nordic in origin. Its main name of the father. Family names can only be principles are the same as those of the Danish used in special circumstances. A woman does not Statute of1963. In Iceland, however, a testator can National Reports I-4 v only dispose of one third of his ~~ate if he h~ Icelandic citizens, to associations with persona} descendants or a spouse. A survtvmg spouse ts liability, in which all personally liable memb entitled to one third of the estate of the deceased are ~ce~dic citizens, and. to .U:stitutions and co~~ as against descendants. Where ~ere are ~o de­ parues Wtthout personal liability which are do · scendants, the surviving spouse will be entttled to ciled in Iceland and in which all the membersnuf two thirds ifparents, one or both, of the deceased the board of directors are Icelandic citizens ~ are alive, but otherwise to the whole. marketable share companies, at least So per ce~t f the share capital also must be owned by IceJandl citizens. Exemptions from these ru1es can bc 4· Law of Property and Obligations granted by the Minister ofJustice. Such an exern e The law of property and obligations in Icelan~ is tion is not necessary for a lease ofreal estate fo p.. in principle very similar to Danish and N o~egtan period shorter than three years or for a lease tba~ law. Only a few divergencies will be mentloned. can be terminated with up to one year's noti The rules described here also apply to real es~:· a. Property law.- The Land Registration Act no. acquired by inheritance. The utilization of rela~ 30/1928 is much more limited in scope than the tively large parts of the country, especially high Danish Act of1926, but the main principles of the lands, that are not habitable, is dealt with b' Icelandic case law in this field are similar to the Statute no. 42/1969 on Mountain Grasslands an~ Danish and Norwegian ru1es. The Icelandic mort­ Herding of Domestic Animals. gage system has not developed in the same way as in Denmark. Public mortgage societies and pen­ b. Law of obligations. - The Icelandic Statute no sion funds are important lenders, but a state­ 7/1936 on Contracts, etc., is practically verba~ directed Building Fund operated under the State the same as the Danish Statute of 1917. The same Housing Directorate Act no. 30[1970 Jcads in this can be said of the Sale of Goods Act no. 39/1922 field. It grants mortgaged loans in respect of (Denmark 1906). apartments built by the state, municipalities and individuals. Most apartments built by the state c. Torts. - The principles described in the reports and municipalities are later sold to individuals on on Denmark and Norway apply also to Iceland. conditions that limit resale to a certain extent. - Certain rules on liability of the owners ofmotor­ The Act on the Rights of Ownership and Use of cars are an exception. Real Estate no. 19[1966 confines these rights to

V. COMMERCIAL LAW

Commercial law is an integral part of the general the association must fulfill the conditions of lce­ ru1es ofobligations , associations and procedure (as Jandic nationality and residence. Associations regards bankruptcy). - The main statutes on without personal liability must be registered and commerce are these: Marketable Share Com­ domiciled in Iceland and their managers and at panies Act no. 77/192!. Co-Operative Societies least one member of the board of directors must Act no. 46/1937, Insurance Act no. 20[1954, Bills fulftll the conditions of Icelandic nationality and of Exchange Act no. 93/ 1933, Cheques Act no. residence; and in marketable share companies, at 94/1933, Accounting Act no. 51[ 1968, Shipping least 50 per cent of the share capital must be Act no. 66/1963 with important amendments in owned by Icelandic residents. Similar rules apply Statute no. 14[1968 and Bankruptcy Act no. in the field ofindustrial manufacturing, governed 25/1929. - The establishment and operation of by the Industry and Handicrafts Act no. 18/1927, bus~ess enterprises in Iceland is generally subject except that the condition of nationality is not a to licence. In the field of commercial trade, gov­ requisite. Artisans are subject to special require­ erned by the Trade Act no. 41/1968 such a ments for professional education and training. In licence is freely available to persons ~ho are certain branches of industry, such as fish pro­ Icelandic nationals and residents, are not legally in­ cessing, licensing is more restrictive than noted c?mpetent, and who have a modicum ofcomm er­ above and the condition ofnationality is rigorous­ cz~ education or training. Business associations wzth personal liability must be registered and ~~ applie~. - Banking is regulated by statutes ~: domiciled in Iceland and all members who act for give specral concessions to each bank. - As canh seen from what has been said in this chapter, it as X Iceland I-s been a policy in Iceland to limit the operation of concessions to set up an aluminium industry and foreign risk capital in the country. This policy has certain other plants. been modified recently in connection with special

VI. STATE DIRECTION OF THE NATIONAL ECONOMY

The Icelandic economy is in principle not regu­ trade and prices. The Statutes on theCentralBank lated by state planning. On the other hand the no. IO/I96I and the Economic Development In­ state has considerable influence on the economic stitute no. 93/1971 provide for measures that may life through many channels, some of them pro­ be used to carry out, within fixed limits, the vided for by legal rules, such as rules on foreign economic policy of the government.

VII. INDUSTRIAL PROPERTY RIGHTS AND COPYRIGHT

Iceland has ratified the Paris Convention for the that registration of firms is necessary except when Protection of Industrial Property {the London one person operates a business in his own name. text of 1934), the Berne Convention for the Pro­ The Patent Act no. 12j1923 provides for protec­ tection of Literary and Artistic Works (the Paris tion for 15 years. The Trade Marks Act no. 47/ text of 1971) and the Universal Copyright Con­ 1968 is similar to such statutes in other Nordic vention of 1952.- The Act on Commercial Re­ countries. The same can be said of the Copyright gisters, Firms and Procurations no. 42/1903 states Act no. 73/1972.

VIII. PRINCIPLES OF JUDICIAL PROCEDURE IN CIVIL CASES

As stated before, the Icelandic court system has General Act on Civil Procedure in First Instance two instances. All cases are first decided in a court no. 85/1936 (supra I 4). The execution of judge­ of first instance. The principles of procedure are ments in civil cases is carried out by a special court the same as in Denmark and arc laid down in the (the Sheriff's Court).

IX. PRIVATE INTERNATIONAL LAW

The principles are the same as in Denmark. It need the Hague Convention on the Law Applicable to only be mentioned, that Iceland has not ratified International Sales of Goods of 1955.

X. SELECTIVE BIBLIOGRAPHY On the law of the Scandinavian countries in general, see national report on Sweden sub XI.

I. Books and Articles Icelandic AI thing: Legal Essays. A Tribute to Frede Castberg (Oslo 1963) 394-410; Judicial Systems General: Or.field, Icelandic Law: 56 Dick.L. Rev. [Iceland]. 42-87 (1951). Chapter II: Umdal, Opprinnelsen til de f0rste islandske Chapter I: Benediktsson, The Two Chambers of the lover: TfR 1969, 467-489; Wandisches Recht. Die I-6 National Reports X

Graugans: Germanenrechte, Texte und Obersetzun­ and Rovelstad (ed.), Commercial Laws [Digest of gen IX (Weimar 1937). - See also supra text sub II. Patent and Trademark Law]; White and Ravenscroft (ed.), Trade Marks [Iceland); Sigurj6nsson, Imrnateriel Chapter W: Urusson, Kafiar t1r ~ofuretti . (ed. 2, Rettsbeskyttelse i Island: NIR 1969, 148-155. 1965); Eyj6lfsson, Udviklingen mdenfor tslandsk erstatningsret i de sidste artier: SvJT 1969, 14o-1ss; 2. Translations of Legislative Texts Hanson Torts. Teaching in Iceland: 5 For.Exch.Bull. Chapter I: Corutitution of Iceland of 17 June 1944, as no. 2 (,1963/1964) 7-8; Bauer, Die Einziehung inl:in­ amended on 14 Aug. 1959: Peaslee, Corutitutions In discher Forderungen in den nordischen Landem Euro­ 449--458; Nationality Act of 23 Dec. 1952 :Nationality pas in Zivil- und Handelssachen: DB 1968 no. 25/26, Laws 226-229. Appendix 16; Eyj6lfsson, Das Eher~cht. Islands; Leske and Loewenfeld, Rechtsverfolgung 1m mtemat10nalen Chapter V: Shipping Registration Act no. 17 of I8 Verkehr I (Cologne a.o. 1964) 317-336. March 1948 [excerpts]: Nationality of Ships 79-Bx; The Central Bank of Iceland Law of 29 March 1961 Chapter V: Sveinsson, The Commercial Law~ of Ice­ as amended through 31 July, 1966: Aufricht, Central land: Kohlik and Rovelstad (ed.), Commercial Laws Banking II 345-354· [Iceland]; Labour Legislation and Social Servi~e ~ Iceland (1949); Groening, Labor Laws and Practtce. m Chapter VII: Law no. 13 on Copyright and Printing Iceland (Washington 1970); Valko, Cooperative Rights of 20 Oct. 1905, as amended up to 2 Feb. 1956, Legislation (Iceland]I43-150. and other regulations concerning this matter: Copy­ right Laws [Iceland] Item 1-J. Chapter VII: Manual Industrial Property I (Iceland]; Sveinsson, Iceland Patent Law and Practice: Kohlik (Completed in December 1972)