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Law 421

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RODNEY E. HAYS LAW 421 ADDRESSING INTERNATIONAL LEGAL AND ETHICAL ISSUES AUGUST 7, 2014 KEVIN MINCHEY

Addressing International Legal and Ethical Issues Simulation Summary

1. What are the issues involved in resolving legal disputes in international transactions?
In a standard legal dispute involving from an international trade transaction, it is foreseeable that an issue in the jurisdiction of private international law might arise. Each country conducting transactions needs to be aware of all legislations and international laws. Whether any foreign judgment obtained abroad might be enforceable in the home country. All companies conducting international transactions aboard should know what jurisdiction to try the dispute. They should know which country’s laws are applied to resolve all issues with the international transaction

2. What are some practical considerations of taking legal action against a foreign business partner based in another country?
What any business needs to consider is the laws of the country they are thinking of doing business in. A U.S Company has to remember, a law in the U.S. is not the same law in another country. Should a law be broken, it may not be enforceable in another country as it can be enforced in the U.S. Even though, a contract is binding agreement, it is only binding if the law agrees.

3. What factors could work against CadMex's decision to grant sublicensing agreements?
A company runs into problems with sublicensing agreement when they decide to create numerous of them, thus increasing a company chance of having lawsuits brought against them. Suppose a company overlooked including the sub-paragraphs within the contract which would relieve them of any legal issue because of the agreement, the company could be completely responsible for any financial damages. Financial damages may steam from a business or a person suing one of the businesses from the sublicensing agreement.

4. When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why
No clarification is required when local laws and custom conflict with laws of companies operating aboard. Where the U.S. Company had decided to do business those laws and customs would win out. In most situations, the U.S. based business would have to sign a contact stating they would conduct business in accordance to the law and customs of the country (Melvin, 2011).

5. How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently?
Every time two businesses decide to enter into a contract, each wants their own county law to apply, as their law would protect them. When a business does business with in their own country they know the laws that apply and protect them. The opposite happens when a business decides to do business outside of their own country; they are not as accustomed with the laws of other countries. For companies to protect themselves, they should hire a lawyer who is familiar with the country they are going to do business in. In this manner, the lawyer can read the contracts and ensure both parties have proper protection (Melvin, 2011).

References

Melvin, S.P. (2011) The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw/Hill/Irvin

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