...International Legal and Ethical Issues Contemporary Business Law-LAW/421 Dina Centifanti Gledhill May 28, 2012 International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare for the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U.N. Commission on International Trade Law to establish uniform rules for drafting certain international...
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...International Legal and Ethical Issues Several issues were addressed in the simulation pertaining to international legal and ethical issues relating to business. There were many issues portrayed in resolving international legal disputes including the full understanding of the local laws and the choices surrounding law and dispute resolutions. The text states, “Whenever a U.S. firm enters into a contract situated in a different country, it should make sure the agreement is officially enforceable” (Melvin, 2011). To fully understand the local laws in an international business transaction a corporation would have to find answers to questions regarding foreign exchange controls, environmental issues, and required governmental consents.. The answers to these questions will help the CEO and legal team move forward in creating a contract that is agreeable to both parties. Choosing the correct law clauses to agree upon during negotiations is one of the most vital considerations of taking legal action against a foreign business partner. In the situation of CadMex, the Candorean Regulations for Technology Import Contracts would be the best selection (University of Phoenix, n.d.). This clause would be the most beneficial because Candoria would most likely impose their government’s laws and regulations. Sublicensing would most likely work for CadMex. However, there...
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...International Legal and Ethical Issues Lori Hall LAW/421 December 18, 2012 Corey Frost International Legal and Ethical Issues When one company decides to take legal action against a foreign business partner in another company it is important to not only have an understanding of their local laws but also cultural differences, customs, and language barriers. All of these items could present possible barriers to resolving legal disputes associated with international transactions. Any company doing business abroad must be mindful of the pitfalls of international business, ensuring that the contract entered into is legally enforceable, the contract must protect the company’s interests in the foreign country against all eventualities, knowing that possible disagreements and disputes are common in the international trade arena. This paper will outline the legal, ethical, and cultural issues of doing business abroad. Issues Involved In Resolving Legal Disputes First, business contracts must clearly specify which laws will govern the business decisions that will be made, whether it is American law, local country laws, or popular international convention. One should note that international laws are broad terms establishing a series of customs that countries and businesses agree to adhere to when dealing with each other and that international laws are binding; however, largely based on reciprocal behavior rather than legal sanctions (Melvin, 2011). Some issues involved in...
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...Addressing International Legal and Ethical Issues What are the issues involved in resolving legal disputes in international transactions? Changes in legislation, clashes of interest, and ethical dilemmas. What are some practical considerations of taking legal action against a foreign business partner based in another country? Legal actions could have a bad impact on current and future investments as well as business relations with the nation. If you do not take legal actions, you could just be inviting the opposing nation to make take further disregard to the contract and this could set the pace for future business with this nation. What factors could work against CadMex's decision to grant sublicensing agreements? CadMex would have to ensure that the Candorean government meets CadMex’s quality standards and production requirement. The other thing is sublicensing would take a lot of time and money, something that Gentura would see unfavorable to them. This in turn could strain relations even further with Gentura and could potentially lead to an ending relationship between CadMex and Gentura. When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. Whichever law is more restrictive is the law that should be followed. This is because it is the safest way to do business in a region abroad. The way I look at it, if you have a process that violates...
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...International Legal and Ethical Issues LAW/421 International Legal and Ethical Issues Addressing international and legal issues can bring about large implications for both companies. It is advisable to have a distinct contract drawn up to protect the rights of the companies especially when seeking technology licensing. Different legal and ethical issues arise when setting up international partnership. One should take into consideration the customs of the business they are trying to complete transactions with. As Melvin (2011) states: International law has traditionally been defined in very broad terms and not limited simply to rules that are applied to settle disputes in court. Rather, international law is influenced by a combination of law, religious tenets, and diplomatic relations between nations. (p. 262, para. 1) International organizations help to define the development of international law (Melvin, 2011, p. 634). These international organizations are structured through several areas of multinational representation which are regulated and created by treaties. Some of these areas are the well-known United Nations and the U.N. Commission on International Trade Law which devised the creation of the Convention of Contracts for the International Sale of Goods (CISG). This is generally the most popular among international organizations. However, each organization must also keep in consideration certain policies, such as one others political situation, cultural issues...
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...International Legal and Ethical Issues In the “Addressing Legal and Ethical Issues Simulation” a number of issues were addressed. The most complex issues were surrounding the proposed jurisdictions of the courts where legal disputes would be argued. The central issues were the time and expense involved in the resolution of potential disputes. At issue were the distance (time and expense) of litigating in US courts versus the immediacy of litigating in the courts of Candore. The enforceability of any judgment was questionable. In the opinion of the Team, non-binding arbitration subject to international law could be the best solution for this question. The recent acceptance of Candore into the WTO should encourage compliance with decisions made in non-binding arbitration and would expedite resolution in a timely and less expensive to both parties and in the event of continued disagreement the parties would have recourse in international law. The alliance between CadMex Pharma and Gentura has been a successful one and both companies have cross-licensing agreements for several other drugs and techniques. CadMex and after 5 years of doing business with Gentura is now facing a dilemma due to the change in political system in Candore a new government is now in place also the country is in the midst of an viral epidemic affecting more than 1% of the population, ViroBlax is a drug CadMex licensed Gentura to market is one of the drugs used in the treatment should CadMex allow Gentura...
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...International Legal and Ethical Issues Someone University of Phoenix LAW421 Professor Miriam V. Gold April 19, 2014 Introduction This week paper is a summary of an agreement between CadMex an American corporation joining working relations with Gentura company which operates out of the country of Candore. As I worked through the different scenario situations I discovered one wrong decision could ultimately make CadMex lose millions of dollars. Choice-of-Law Clause Depending on the country you deal with it would be ideal to make a contract that follows under the United Nations Convention by agreeing under Contracts for the International Sale of Goods (CISG). Candore doesn’t practice this type routinely as it probably would prefer to function only under Candorean Regulations for Technology Import Contracts (CRTIC). The next step would to determine forum to use. To keep a neutral and bias decision it would be in the best interest of both parties to utilize the International Arbitration. Under this you have to choose binding or nonbinding agreement as they both have their advantages and disadvantages. Course of Actions to Consider The main consideration before taking legal action against foreign business is making sure to look after the best interest of the company you represent but also equally important, the relationship you wish to have in the future with that business in another country. The other factor is to consider the time it will take...
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...Addressing International Legal and Ethical Issues LAW/421 December 18, 2013 Addressing International Legal and Ethical Issues International legal and ethical issues are extremely important to know how to deal with when you are going to join into or do business in any other country other than the U.S. In this stimulation of CadMex Pharma and Gentura, they are facing several international contracts, transactions, ethical issues and sublicensing agreements. CadMes Pharma is a pharmaceutical company in the U.S. who offer quick manufacturing techniques and has dealt with global issues often. Gentra is a biotech company in the country of Canodre which have the licensing rights to a hypothetical anti diabetic drug. CadMex Pharma’s goal is to grow financially by being able to distribute and supply this medicine for Gentra in the U.S. All countries have their own set of laws and ethics that are required to be followed, unless you have a contract in place with the company or country that you are involved in business. * What are the issues involved in resolving legal disputes in international transactions? Making a choice on which way to handle these transactions are vital, when dealing with international disputes. One choice is the Contracts for International Sale of Goods. This is not very effective because Canodre changed status and became part of the WTO. When one of the parties is not a signatory of this program, then the other party is more likely to use their...
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...International Legal and Ethical Issues Law/421 February 12, 2013 Danny Richey International Legal and Ethical Issues When dealing with International transactions one needs to know how to resolve legal disputes, know some practical considerations of taking legal actions against foreign businesses in another country and what factors could work against CadMex’s decisions to grant sublicensing agreements. Resolving legal disputes internationally requires a different handling of transactions. A contract for the International Sale of Good is a common choice of law as it protects more than local laws. Factors that should be considered are: which country’s court should have jurisdiction to try the legal dispute, which country’s law should be applied to resolve the dispute, and whether any foreign judgment obtained abroad might be enforced in the home country. It is important to consider International arbitration, as it is recognized more internationally then local courts only. Reaching an agreement is quick and less expensive. One of the most important considerations a company must take into account is that not all countries have that same legislation as the Unites States. You have to make sure to look into the rules and laws of the country in which you will be conducting business in. If a case is filed the country has the authority to refuse any additional business transaction in that specific country. Other considerations is the loss financially...
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...International Legal and Ethical Issues LAW/421 University of Phoenix What are the issues involved in resolving legal disputes in international transactions? When dealing with outside countries all contracts must be able to have some type of legal implementation . There has to be some type of enforcement on the contract or it may never be resolved. What are some practical considerations of taking legal action against a foreign business partner based in another country? The law of other countries is the first and foremost important thing to take into doing business within that country. The United States laws are only upheld within the United States and not in a foreign country. The law that matters is the enforceable law in that country. Contracts are only binding if they have the backing of the law in whatever county or countries they are made in. According to (Melvin 2011); a country can stop all transactions from that business if they file lawsuit on that country. What factors could work against CadMex's decision to grant sublicensing agreements? Sublicensing agreements comes into play when the organization has too many of them and does not fully incorporate sub-paragraphs. This leaves the organization up for lawsuits if any of the contracted workers do something wrong and also makes the main organization fully liable for any damages. Even workers within the sublicensing can sue a business formed within...
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...International Legal and Ethical Issues Simulation Analysis Businesses must ensure legal protection from other foreign country companies from adverse actions. There is high risk in international business transactions and CadMex need to protect against them. Steps to protect the business legally is crucial when selecting the choice-of-law, and selecting clause in the simulation. Establishing terms in a contract is important factor in a business partnership between foreign countries to protect interests for each party. After completing the first section of the simulation identifying the choose-of-law in the United States regarding specific contracts is Contract of International Sale of Goods (CISG) for domestic business transactions that cover marketing ProPez. CISG laws cover the use of technology in this case with Gentura; however, does not cover licensing or patents. International Arbitration non-binding contract provides variety of dispute resolution organizations to resolve contract disputes may take a year instead of awaiting court availability in this case, it is less expensive, and recognize contract internationally. This option safeguards CadMex’s interest with certain contingencies under contract law applicable in this case. After Candore gained World Trade Organization (WTO) the best choice remains CISG fits terms in the contract cover marketing ProPez and technical training, but does not cover patents and licensing. In March 2007 an unidentifiable...
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...International Ethical and Legal Issues What are the issues involved in resolving legal disputes in international transactions? When entering into agreement with another country it is imperative the contract is legally enforceable. With international business transactions both parties should also be aware of changes that are made to international laws and regulations. What are some practical considerations of taking legal action against a foreign business partner based in another country? Some practical considerations of taking legal action against a foreign business partner based in another country are the laws of the country and the possibility that if legal action is taken that country could deny further business transactions. Also to be considered is the standing business relationship between the two countries and the situation itself. For example, legal action may not be the best idea if the country has been faced with major crisis. Instead opting not to take action and receiving compensation may be the better way to go. If there is a good standing relationship one may be able to trust that the country will make good on it. What factors could work against CadMex's decision to grant sublicensing agreements? One factor than can potentially work against CadMex’s decision to grant sublicensing agreements is that in choosing to do this they increase chances of having a lawsuit brought against them. Failure to create a fully detailed contract can potentially result in liability...
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...International Legal and Ethical Issues LAW/421 December 18,2012 International Legal and Ethical Issues Our society is involved in a global economy that deals with many countries, cultures, business ethics, monetary differences, and government policies. International transactions are made daily through legal channels that are set up to provide a smooth transition between entities. Provisions of legal guidelines assist in providing the parties parameters of acceptable and unacceptable behavior and consequences in respect to legal disputes of transactions. International transactions may include joint ventures, contract negotiations, employee wage compensation, enforcement of corporate contracts, merger and acquisitions, complex litigation, taxes, securities, and many more corporate decisions. The complexity of International law is best served with counsel that is knowledgeable on international affairs, and government policies. Bilingual counsel in several languages is a great asset to the business team as this provides translation effectiveness for a fairer representation in legal matters. International law is a very different forum of law due to the fact it does not have a governing body or set of laws to follow. International law is negotiated between different countries and the policies and laws of each country to meet a satisfactory line of agreement between the two entities. International law encompasses a collection of agreements, treaties, charters, and protocols...
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...four levels of American law. According to the text, "Modern law in the United States regulating businesses and individuals is generally a combination of constitutional law, statutory law, common law, and administrative (regulatory) law at the federal, state, and local levels," (Melvin, 2011, p. 44). Constitutional law consist of two major functions. The fist is to impose essential structures of specific body of government, and the second is protecting a number of individuals rights from authorities, and property taken by the government. Statutory law is a written regulation generated by a state or federal ruling which can be supported or condemned by the executive branch. The function of common law has no comprehensive compilation of legal statutes and relies on legislative decisions made in similar cases. The functions of administrative law consist of rules and regulations created by previous parties. Administrative law undertakes superiority of how communities and federal agencies are standardized. The U.S. Consumer Product Safety Commission and the Federal Trade Commission are two examples of the many government agencies that control business laws. Functions and Roles of Law in Current or Past Profession Logistics contractors for the...
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...Paying Not to Go to the Gym By STEFANO DELLAVIGNA AND ULRIKE MALMENDIER* How do consumers choose from a menu of contracts? We analyze a novel dataset from three U.S. health clubs with information on both the contractual choice and the day-to-day attendance decisions of 7,752 members over three years. The observed consumer behavior is difficult to reconcile with standard preferences and beliefs. First, members who choose a contract with a flat monthly fee of over $70 attend on average 4.3 times per month. They pay a price per expected visit of more than $17, even though they could pay $10 per visit using a 10-visit pass. On average, these users forgo savings of $600 during their membership. Second, consumers who choose a monthly contract are 17 percent more likely to stay enrolled beyond one year than users committing for a year. This is surprising because monthly members pay higher fees for the option to cancel each month. We also document cancellation delays and attendance expectations, among other findings. Leading explanations for our findings are overconfidence about future self-control or about future efficiency. Overconfident agents overestimate attendance as well as the cancellation probability of automatically renewed contracts. Our results suggest that making inferences from observed contract choice under the rational expectation hypothesis can lead to biases in the estimation of consumer preferences. (JEL D00, D12, D91) “Saturday 31 December. New Year’s Resolutions. I WILL...
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