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Addressing International Legal and Ethical Issues Stimulation Summary

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Addressing International Legal and Ethical Issues Stimulation Summary

LAW/421

Addressing International Legal and Ethical Issues Stimulation Summary
CadMex and Candore based Gentura are both a United States based Pharmaceutical Company that want to enter into a partnership together. In the stimulation there was a few situations where legal and ethical issues arouse and had to be handled.
International Transactions Legal Disputes
The legal issues that rise within the international boundaries are at times the hardest to settle because the legal requirements are between two countries. CadMex has the ability to challenge their company to sublicensing its products into all international markets. A way of resolving this type of dispute it’s to enter into an international contract that states every detail specifically.
Legal Action against a Foreign Business
Taking legal action against a foreign business partner has several practical considerations. First, the cost of taking legal action will likely be much more expensive due to the increased need to research laws applicable to the country. In CadMax’s case, it would be necessary to hire a legal team with expertise in the foreign country. Second, the probability of a foreign entity successfully winning a civil suit against a domestic entity will most likely be very low. Third, swing business partner could adversely affect the brand reputation and make other international partners cautious of doing business with the company. It is often much more favorable for both parties to resolve disputes behind closed doors with mediation or arbitration, as opposed to a formal court system.
CadMex's Decision to Grant Sublicensing Agreements
In the stimulation, there were already generic brands of CadMex’s product on the Canadian market. The Canadian government has a vested interest in seeing domestic industry thrive, therefore, it may not want to cede market share to a foreign corporation. If the foreign legislators believe sublicensing will hurt domestic firms, they could take steps to prevent the deal from going through. If this even were to take place, CadMex would have very few remedies to profit from its sublicensing agreements. This highlights the importance of conducting ample due diligence before investing in operations in a foreign country.
Customs and Laws of Organizations
The customs policies of the country receiving the goods should prevail. For example, if a U.S. company exports a banned substance into a foreign country, that party will be in violation of the law. When a person or business breaks the law in a foreign country, they will be forced to abide by the legal process and punishments given in the foreign country. U. S. officials will have very little power at assisting entities that have broken foreign laws. In extreme cases, foreign governments have seized assets of foreign businesses for violating local laws.
Domestic and International Legal Issues
In principle, the international legal issues are very similar to domestic issues. Laws are designed to protect the people of the domestic country and firms must work within these constraints. Companies face a much large risk when operating internationally because they must comply with a completely difference set of laws. If the company is in violation of the law, they will be subjected to the legal system in foreign country. Ultimately, building a strong understanding of the legal and political systems that exist in foreign countries can mitigate this risk.

Reference

Phoenix. (2015, June ). Contemporary Business Law 1: Addressing International Legal and Ethical Issues Stimulation. Retrieved from Pheonix.edu: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMSims/business_law1/business_law1_intl_legal_ethical_simulation.html

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