Legal and Ethical Issues Summary
CadMex is in Florida and markets its product in 127 countries around the world. I am attempting to coordinate the contractual terms between CadMex Pharma and Gentura. Gentura is a biotechnology company based in Candore, which is known for ProPez, which is a breakthrough medication for anti-diabetes. The company does not have the abilities to produce globally, and CadMex is attempting to negotiate a partnership.
Some issues to consider in resolving disputes in international transactions would be selection of local counsel, understanding of unique aspects of local law, conduction due diligence, effective tax and other structuring issues, competition law issues, purchase price issues, choice of law/dispute resolutions, master/local agreements, language and cultural issues, and managing the task (Peter, 2014). In a world of rapid growth and expansion business have an established method of resolving disputes quickly, efficiently and constructively known as arbitration. Nickerson (2005), "Arbitration is a voluntary process of dispute resolution where a neutral third party renders a final and binding decision after each side has an opportunity to present its view." When it came to CadMex Pharma having to deal with the idea that Gentura is bound by and coincides with the laws of Candore. Gentura is more obligated to its country of residence. Very few laws of the United States will have any matter in this country. A main issue that could present itself in resolving any legal disputes is the venue for the dispute. The best solution would be International Arbitration on neutral ground with a company who is familiar with International transactions with outcomes that are binding. A binding outcome can ensure both sides are willing to follow the resolution because there is no other viable option. There is an extensive list of international, regional and national arbitration associations which can be located at: http://www.internationaladr.com/ (Nickerson, 2005).
Some practical consideration of taking legal action against a foreign business partner based in another country should include being familiar with the Foreign Corrupt Practices Act (FCPA). According to "Helping U.S. Companies Export" (2009), "the FCPA prohibits American companies from making corrupt payments to foreign officials for the purpose to obtaining or keeping business." According to "International Law " (1995-2014), “There are three main legal principles recognized in much of international law which are not required, but are based chiefly on courtesy and respect: 1.) Principle of Comity – in the instance where two nations share common public policy ideas, one of them submits to the laws and judicial decrees of the other. 2.) Act of State Doctrine – respects that a nation is sovereign in its territory and its official domestic actions may not be questioned by the judicial bodies of another country. It dissuades courts from deciding cases that would interfere with a country's foreign policy. 3.) Doctrine of Sovereign Immunity – deals with actions brought in a court of one nation against another foreign nation and prevents the sovereign state from being tried in court without its consent. In the U.S., this is governed by the Foreign Sovereign Immunities Act (FSIA) of 1976. When it comes to resolving a trade dispute either party can contact the embassy or consulate depending on the dispute of the matter ("Helping U.S. Companies Export," 2009).