...Addressing International Legal and Ethical Issues Simulation Summary Law/421 • What are the issues involved in resolving legal disputes in international transactions? Resolving legal disputes in international transactions should have an international arbitration for resolving disputes internationally. There should be a legal backing to enforce contracts with cross-border multi-jurisdiction transactions. Thus, a dispute resolution clause should be added just in case there are any infractions that state a method of a resolution, such as arbitration or litigation, procedures, and jurisdiction of the courts. • What are some practical considerations of taking legal action against a foreign business partner based in another country? There should be consideration for the laws of the other country or countries that foreign business is conducted. The laws in another country does not hold up in the United States as well as the laws of the United States will not hold up in a foreign land. • What factors could work against CadMex's decision to grant sublicensing agreements? When sublicensing agreements, what could work against CadMex is lawsuits could start to accumulate because of the negligence of a third party. If a worker does wrong, damage property, or does something outside of the agreement, this would make the main company liable for this negligence. • When the local customs and laws conflict with the customs and laws of an organization operating abroad...
Words: 453 - Pages: 2
...Addressing International Legal and Ethical Issues Michael Walker LAW/421 November 18, 2014 Professor Dustin White Addressing International Legal and Ethical Issues This paper will discuss some of the issues big businesses most consider when engaging in business internationally as learned from the International Legal and Ethical Issues simulation. We will examine the most frequently asked questions regarding what’s legal and ethical in our chosen country to best serve and protect all parties from potential lawsuits. There are many issues involved in resolving legal disputes in internationally. One must consider selecting local counsel, who knows the rules, policies, and regulations as it relates to the location of the breach of contract. Choosing a law firm known for international experience may be the difference in winning or losing a contract dispute. Selecting adequate law clauses that all parties agree to base business on is important and crucial to a business like CadMex and Gentura. Because Candorean regulations for technology import contracts would be the best fit because all parties’ interest are protected. This form of legal action works best when partnering within another country. Employment issues, business image, and culture are other practical considerations when taking legal actions against a foreign business. Factors that could go against CadMex’s decision to grant sublicensing agreements could be the time and cost associated with making products...
Words: 406 - Pages: 2
...Addressing International Legal and Ethical Issues Simulation LAW/421 Addressing International Legal and Ethical Issues Simulation Businesses worldwide are branching into new markets to maximize their profits and customer base. This increase in globalization is creating new and expanded concerns when it comes to international legal and ethical issues. The simulation presented to students in week 2 introduced some of the issues that might arise in the international business world. Legal Disputes When a company makes the decision to get involved in international transactions, two aspects of the business contract will be the choice of law clause and the forum selection clause. The choice of law clause will determine the laws that apply should a legal dispute arise (University of Phoenix, 2015). The forum selection clause will determine which forum the legal dispute will be settled in. Some examples of legal forums are international arbitration or the court systems of the two parties (University of Phoenix, 2015). Practical Considerations When a company decides to take legal action against a foreign business partner based in another country there are considerations that must be addressed. Some of the things that must be considered include, the legal system of the foreign country, the changing regulations of the foreign country and the sustainability of contracts within the foreign country. All countries have unique justice systems, and it is important to have...
Words: 338 - Pages: 2
...Addressing International Legal and Ethical Issues LAW/421 Contemporary Business Law Addressing International Legal and Ethical Issues With the increasing globalization of business, organizations are finding themselves in an global environment full of legal and ethical challenges. In some international environments, the very legitimacy of a company doing business in a specific country can be a challenge. International transactions and dispute resolution require both an understanding of the law and sensitivity to foreign culture, formal and information power structures and decision-making approaches. This paper will ethical and legal issues involved in resolving legal disputes in international transactions. From an ethical point of view, an organization seeking to expand globally should first consider whether they should conduct business in countries after researching the specific country’s sociopolitical environment. Corrupt public officials, participating in racial or gender discrimination, polluting the environment or violate the human rights of their citizens through slave or child labor or inhuman working conditions (Trevino & Nelson, 2011) is considered corporate culture in some countries. For example, Foxconn is a multinational electronics contractor for major American, European, and Japanese electronic companies who has been involved in several controversies relating to how it manages employees in China. It is claimed that Foxconn uses underage workers and...
Words: 653 - Pages: 3
...Addressing International Legal and Ethical Issues Michael Walker LAW/421 November 18, 2014 Professor Dustin White Addressing International Legal and Ethical Issues This paper will discuss some of the issues big businesses most consider when engaging in business internationally as learned from the International Legal and Ethical Issues simulation. We will examine the most frequently asked questions regarding what’s legal and ethical in our chosen country to best serve and protect all parties from potential lawsuits. There are many issues involved in resolving legal disputes in internationally. One must consider selecting local counsel, who knows the rules, policies, and regulations as it relates to the location of the breach of contract. Choosing a law firm known for international experience may be the difference in winning or losing a contract dispute. Selecting adequate law clauses that all parties agree to base business on is important and crucial to a business like CadMex and Gentura. Because Candorean regulations for technology import contracts would be the best fit because all parties’ interest are protected. This form of legal action works best when partnering within another country. Employment issues, business image, and culture are other practical considerations when taking legal actions against a foreign business. Factors that could go against CadMex’s decision to grant sublicensing agreements could be the time and cost associated with making products...
Words: 406 - Pages: 2
...Addressing International Legal and Ethical Issues There are many reasons that an American company would want to do business with a company outside of the U.S., including the cost of labor and the availability of materials. The downside of doing business outside of the U.S. is that there may not be a thorough understanding of expectations that both parties have of the other. International law is very broad and must also take into consideration any religious and diplomatic factors. Resolving legal disputes in international transactions can be challenging because even though international courts have been established, the jurisdiction of these courts can be difficult to define. Each country has their own legal systems in place, and this will also be considered in resolving disputes. Some of the practical considerations that need to be thought through when taking legal action against a foreign business partner based in another country include understanding any treaties that are in place, as well as the international organizations that could apply, such as the World Trade Organization, The International Monetary Fund, and the Organization for Economic Cooperation and Development. An understanding of local laws and customs is necessary. It is important to consider putting arbitration agreements in place beforehand. Factors that could work against CadMex and their decision to grant sublicensing agreements would include the possibility that if a dispute arises, the country...
Words: 484 - Pages: 2
...Addressing International Legal and Ethical Issues There are many differences between conducting international business from domestic business. Every country has unique laws and customs that differ from a foreign company operating within their borders. Most companies understand that it is essential for them to honoring and respecting the laws and customs of their host country to keep a productive relationship. Laws in the United States forbid discrimination for religious, sex, race, or national origin, while many other countries do not. As an American company it is beneficial to observe local customs like closing business on major religious holidays to maintain a positive relationship with the host nation, local company, and employees. Even though a company follows the laws of the host country, things can still go wrong and legal disputes arise. When trying to solve international disputes, having an international arbitration would be the best way to go about legal action. It is extremely important to make sure all aspects of the contract are clearly laid out. As important it is to have a clear agreement it is equally important to have some flexibility or wiggle room for when unexpected events happen you can allow space. When deciding to take legal action a company must consider what is in their best interest, both financially as well as their image. In the simulation a virus outbreak occurred and current manufacturing would not be able to produce enough pills to meet the potential...
Words: 391 - Pages: 2
...Addressing International and Ethical Issues Stimulation Summary Michelle Straughter LAW/421 November 18, 2012 Corey Foster Companies should be aware of possible pitfalls of the international business arena. Disagreements and disputes are common in international trade. Ethical issues are precisely complex when setting certain standards in international businesses. Different nations establish their standards by expanding countries. In this stimulation summary addressing international legal and ethical issues this discussion will explain how the issues resolve legal disputes and international transactions. Describing some particular considerations of taking legal action against foreign business based in another country. What factors that works against CadMex decisions to grant sublicensing agreements. When the local customs and laws conflict with customs, laws conflict with customs, and laws of an organization operating abroad, in which should be prevail. Compare the issues in the simulation to the domestic legal issues, and how the companies should resolve domestic and international issues differently. History of CadMex Pharma and Gentura CadMex Pharma is a pharmaceutical company based in Tampa, Florida. These products are produced in 127 countries across the world. The company researches in developing drugs and manufacturing techniques. Gentura is a biotechnology company based in Candore, in which a small developing country on a high on high-growth curve. The company has evolved...
Words: 412 - Pages: 2
...Addressing International Legal and Ethical Issues Addressing International Legal and Ethical Issues The issues that are involved in resolving legal disputes in international transactions are, the need to understand the sensitive nature of the foreign law, culture, politics, formal and informal power structures and decision making approaches. A complete study of the laws and culture of doing business in a foreign country should be addressed before any contracts are written. Some practical things to consider are what common business law source such as CSGI, ICC or the WTO should be used to arbitrate disputes that may be encountered when legal situations arise. This will ensure fair and equitable trade between both parties. Some of the factors that can work against CadMex’s decision are, companies or organizations are open to lawsuits. Government sponsored or individual sponsored lawsuits must be investigated to establish best business practices are used to create a fair and equitable partnership. When local customs and laws conflict with the laws of an organization, the customs and laws of the country that the business is being conducted in, will prevail. This is because, if a company has locations in more than one country, whatever business that is conducted must be in compliance with the laws of the host country in which it is actually taking place. When two businesses decide to enter into a contract, each wants the laws of their country to apply, because their...
Words: 369 - Pages: 2
...Addressing International Legal and Ethical Issues Simulation Summary John Smith LAW / 421 December 18, 2014 Pamela Alexander Addressing International Legal and Ethical Issues Simulation Summary Operating a business in a foreign country can be both profitable and beneficial; however there are some risks in doing business in a country that has different laws than the United States. Local laws and customs can conflict and that’s when operating can become challenging. The local laws must prevail once the decision is made to conduct business in another country. A good way to avoid problems is to be aware of the different laws the desired country has. Making a decision in a foreign country is easier when you have knowledge of the local laws. Knowing how to resolve international problems is important. Some critical issues may be to know if a contract is legally enforceable. Does the contract protect the company’s best interest? Knowing the country’s political situation and ethical differences could also help international business transactions. Legal action is often not the same as it is in the United States. There are certain considerations that must be acknowledged when perusing legal action against another person in a foreign country. As far as jurisdiction is concerned, if your contract is with a party based in the European Union, you can sue the defendant in its local courts. Alternatively, you can sue the defendant in the courts of the European Union state where the contract...
Words: 467 - Pages: 2
...Addressing International Legal and Ethical Issues LAW/421 Contemporary Business Law October 4, 2014 Addressing International Legal and Ethical Issues In the “Addressing International Legal and Ethical Issues” simulation; a company named CadMex was in discussions to do international business with a company from Candore named Gentura. The issues that were involved in resolving legal disputes in international transactions are that the company from the United States, CadMex; had to be careful to make sure that they knew the laws of the country of Candore and abided by them. CadMex needed to be familiar with the culture and local government as well as to not get into any long legal disputes with the country of Candore. Considerations must be taken when taking legal action against a foreign business partner based in another country. Taking legal action in another country would severely impact any future investment and business relations in that country, but on the other hand depending on the situation action must be taken to protect the company. When CadMex considers their decision to grant sublicensing agreements; they must consider many factors. The factors would be that the sublicensed companies would need to meet the current quality standards and production requirements currently upheld by CadMex. CadMex must also consider the time that the sublicensing agreements will take to accomplish and the cost that the company will incur from these sublicensing agreements....
Words: 416 - Pages: 2
...Addressing International Legal and Ethical Issues LAW/421 Addressing International Legal and Ethical Issues When conducting business international it can be difficult for both parties to come to an agreement. Companies that conduct international business will need do research on the company and how they will help each organization out. This week’s simulation was about CadMex Pharma and Gentura. CadMex Pharma is pharmaceutical company based in Tampa, Florida. Gentura is a biotechnology company based in Candore. Candore is a small developing country with increased growth. These two organizations want to create a business relationship around a new product that Gentura has recently developed. Gentura wants to give the global marketing rights for their new product ProPrez to CadMex. In order for this to work for each of the organizations they will need to figure out what type of proper law clause and forum selection clause they will use. It is important for these companies to come to an agreement with a proper law clause and forum selection clause because this will allow them to create a contract that will set the expectation for each organization (University of Phoenix, 2004) After completing the simulation the best option for both organizations is to create a contract for the International Sale of Goods and International Arbitration. This will allow each organization to resolve any disputes that come up. It is important to have a contract when conducting business internationally...
Words: 586 - Pages: 3
...Addressing International Legal and Ethical Issues simulation Eduardo Aguayo LAW 421 September 25, 2014 Richard Burgoon Addressing International Legal and Ethical Issues simulation International transactions and dispute resolutions require both an understanding of the law and a sensitivity to foreign culture, politics, formal and informal power structures and decision-making approaches. The International Transactions and Disputes Group offers counsel to U.S. and foreign-based clients in a wide range of complex international matters. (White and Williams, LLP) U.S. laws governing the international business activities of U.S. companies fall into two categories. The first consists of laws, such as antitrust, employment and economic-espionage laws, that are also applied frequently in the domestic context. (American Bar Association) With the expansion of the EU and increasing pressure to keep costs low, more businesses are looking abroad for potential clients and suppliers. If you are embroiled in a dispute with a foreign business, you will need to know whether you can take legal action in this country. You must first of all look at the written contract between you and the other party, if there is one. This will often contain governing law and jurisdiction clauses. The governing law clause will set out which country's law will apply to any dispute under the contract, and the jurisdiction clause will state in which country the legal action must be taken. If there is no written...
Words: 860 - Pages: 4
...Addressing International Legal and Ethical Issues Complete comprehension of national and international law is required to conduct a business transaction. Understanding these laws will help in resolving legal disputes, and taking legal action against a foreign business partner. Also knowing what priority to set local customs and laws at, when operating abroad. Finally, how companies could resolve domestic and international issues differently. Resolving Legal Disputes in International Transactions There are many motives that can lead to a legal dispute in international transactions. Some consist of modifications in the lawmaking, conflict of interest, or ethical dilemmas. To assist in resolving a dispute, companies must ensure to include in the contract provisions that will protect the company’s assets in the foreign country against possible outcomes. Typically both parties will enter into the Contract for the International Sale of Goods (CISG), which offers both parties an international recognized headquarter for transactions (University of Phoenix, 2013). Taking Legal Action against a Foreign Business Partner Before a lawsuit can begin against a foreign business partner the plaintiff needs to know if he or she can take legal action in that country. The contract that both parties signed will include the governing law and the jurisdiction clause. The governing law will lay out which country’s law would pertain in the event of a dispute. The jurisdiction clause will disclose...
Words: 492 - Pages: 2
...Addressing International Legal and Ethical Issues Ayanna Segure LAW/421 September 11, 2013 Carol Terry In this simulation CadMex Pharm pharmaceuticals went into business with in Cadore with hopes of expanding on the breakthrough medication Propez that was produced by the biotechnology company Gentura. The two companies ate facing international contracts, as well as sub licensing agreements. The agreement was of the company Gentura to provide licensing rights for CadMax due to the global and manufacturing experience in anticipation of a better profit margin. The resolving go legal disputes in international transaction are not always settled in court. "International law is influenced by combination of law, religious tenets, and diplomatic relations between nations"(Melvin, 2011, Chapter 25). The most shared choice most international business contracts is the International Sale of Goods which protects businesses the way local law does. International arbitration is usually not held on the soil were either party involved is connected with, these arbitrations are enforced due to international laws dealing with arbitration set in 1958. Arbitration is the most practical consideration that can be taken, this process can take a year or more, a party may consider out of court settlements or risk a financial loss. In the case of CadMex and their decision to grant sub-licensing agreement the factors that may work against them is the time and size of the financial investment made...
Words: 458 - Pages: 2
