...Valid Contract Unit 3 IP Penelope Manzo BUSN310-11-2B-06: International Legal and Ethical Issues in Business American Intercontinental University James Lange Valid Contract A valid contract is an agreement that is backed-up by the courts. The contract is valid if it meets all four elements, which includes: an agreement, valuable consideration, competent parties, and legal purpose. The agreement must be a compromise from both parties, and the intention of all terms of the contract must be agreed upon from both parties. Before the contract can begin, both parties must make clear each intention, detailed, and both parties must have a clear understanding. The agreement must have an offer and an acceptance, which must include both parties. Next, a valuable consideration, in which each party are required to give up something of value or refrain from exercising a legal right in an agreement, such as the initial agreement. The third element, competent parties means all parties must possess the legal capacity to enter into the contract. This means the state jurisdiction must be met, all party members must be of legal age within the state, and must be of mental competence. Lastly, legal purpose, the contract must have a legal purpose and not contrary to the public policy. These four elements must be agreed upon and meet before a contract becomes valid. According to US Legal Definitions, Objective theory of contract is a “doctrine which states that a contract is not an...
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... International Legal and Ethical Issues in Business American InterContinental University It is know that is anyone in the business world has legal obligations to keep their employees and customers safe. The first thing that I would do is call a meeting with the CEOs, directors, and managers, present the potential defective product to the boards as an issue and explain to them exactly what the defect in the product is. The CEOs, directors, and managers will know that everything possible is being done to protect the consumers from any hurt, harm or danger of this potential defective product. I would advise everyone to follow all company policies and procedures of what to be done in the event of a failed product. If there is a possibility that there is a defect in a product of a company, after making the CEO and other personnel of the company aware of the issue, the next step is to make the customers aware of the issue. A company will not be in business for long if they decide to ignore its customers. The most effective way to notify customers of a defect in a product is by recalling the product. This is to contact them by mail or email with a letter of a possible defect in the product, set up special phone lines and e-mail addresses so that the customer can report any issues with the product...
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...International Legal and Ethical Issues in Business unit 1 individual project Introduction In the scenario of the company’s upcoming meeting with the chief executives officers of the company, (CEO) this would be a great opportunity to present the potential defective products, that’s being sold to the customers and potential customers. Not only to the directors but to the executives as well As this is a very serious issue that cannot be over looked, that could cause a plague throughout the organization... this defective product could pose a risk For both the customers and the company. And cause millions of dollars in lawsuits, the businesses reputation, unsatisfied customers, and ultimately putting the company at risk of going out of business. Since the new executive may not be aware of the potentially defective product; nor of the company’s ethical guidelines; due to the lack of effective communication. However, as leaders of the organization all are accountable and responsible for the actions by the organization... as leaders are the pillars of the organization; i.e. directors, managers, internal auditors, and external auditors. Leaders must be an example of honesty, and accountability. “To be effective, all four must operate separately or it will cause a substantial amount of damage. (As cited in clarity begins at Home, 2002). Body Therefore the purpose of this assignment to discuss and prove the internal action of a defective product and how to ethically, notify...
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...Marian Malone International Legal and Ethical Issues in Business October 25, 2015 Abstract What kind of statements are companies allowed to make in their advertising campaigns to get noticed by the general public? How much of this advertising is taken seriously by the general public? Will a company be held responsible to follow through for their statements made in an ad campaign? We will examine these questions in this paper. Circumstance In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each. The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet. The company wrote back, stating that the Harrier jet in the commercial was simply used to created humorous and entertaining advertisement...
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...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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...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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...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...
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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 Summary Donna Bass LAW/421 January 18, 2016 Andrew McAdams Addressing International Legal and Ethical Issues Summary When operating a business internationally, there are legal and ethical issues that must be taken into account. The simulation shows that to be successful; a company must understand the issues involved in legal disputes, the practical considerations of taking legal action, what factors can work against the company, and what to do when customs and laws conflict. The issues that can arise when trying to resolve legal disputes in an international transaction can be cultural, ethical, political, and differences in power structures. Before taking legal action, arbitration should be considered as it is less expensive and the outcome would likely be more beneficial that dealing with a foreign court system (University of Phoenix, n.d.). Before taking legal action against a foreign business partner, there are practical considerations to take into account. The cost of legal fees and the chance of winning a court battle against this partner in a court of their country should be considered. Another is the damage that a lawsuit could have on the company's reputation. This action could hurt their chances of obtaining future international partners. Factors that could work against the granting of the sublicensing agreements by CadMex include the fact that the Canadian government and legislators would work to prevent the...
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...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...
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...Addressing International Legal and Ethical Issues International Legal and Ethical Issues In international transactions there are many issues that must be addressed at the onset. If legal action should arise against a foreign business partner, there will be practical concerns. There could be factors that work against international business decisions. Local laws and customs will be different in a foreign country. In a situation in which the local laws and customs conflict with those of the foreign business partner it is difficult to determine who should prevail because of these differences. For that reason, it is important that business transactions be governed by a well-defined agreement from the beginning. When a company does business in another country it is important that the companies agree on choice of law and jurisdiction upfront. In the simulation, there was an outbreak of an epidemic that affected the business relationship between CadMex and Gentura (University of Phoenix). Had the companies not determined choice of law and jurisdiction for dispute resolution, CadMex could have suffered more severe financial losses because of the forced subsidization of generic medication. By agreeing upon choice of law and jurisdiction in the beginning, the companies had a pre-defined forum for resolving unforeseen disputes. When taking legal action against a foreign business partner there are also additional practical considerations...
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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...
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...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...
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...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...
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...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...
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