International Legal and Ethical Issues Simulation Summery
Mauricio G. Holguin
LAW/421
30 January 2014
Teresa Morales International Legal and Ethical Issues Simulation Summery
Legal disputes can occur between businesses while conducting business. It is the responsibility of both parties involved to conduct risk management and examine whether or not is worth the risk. In this paper, one will briefly describe legal dispute in international transactions and will comment in the scenario in week two assignment.
What are the issues involved in solving legal disputes in international transactions?
Before any action can take place, both parties need to take into consideration each other’s laws. Factors such as local and international laws can be difficult. The differences in political and culture platform also have an important role in the success of conducting international business (Melvin (2011).
Being able to define the international law as either public or private; plays a role in understanding international law. In regards to CadMex and Gentura, the different laws and culture may pose problems. Gentura is part of the dictatorship country of Candore and may not fulfill the technology transport criteria set by its own country title, Cardorean Regulations for Technology Import Contracts (CRTIC) (University of Phoenix, 2014).
What are some practical considerations of taking legal action against a foreign business partner based in another country?
One thing to consider is the law of other countries are important when doing business within them. The United States laws only endorsed within the United States and do not apply in a foreign country(Melvin (2011). In the case of the assigned scenario, Candore is not a signatory to any of the major international trade conventions which may pose problems, however, is in the process of becoming a member of the World trade Organization (WTO) signatory (University of Phoenix, 2014). CadMex also need to consider that Candore does not have international law experience which may result in unnecessary legal problems.
What factors could work against CadMex's decision to grant sublicensing agreements?
CadMex is placing its business at a high risk due to sublicensing. The sublicensing with Gentura Company could be manipulated by its country’s questionable laws. Also, Candorean authorities may pose red tape and may disapprove parts of its binding contracts (University of Phoenix, 2014).
When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail?
Businesses operating abroad should follow local laws of the host country. The local laws will always prevail because they are recognized by the host government. The chances of a legal dispute between the organization operating abroad and the host country may not win because the laws are or may not be recognize by the local authorities (Melvin (2011).
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?
This student believes that arbitration will be a good forum because CadMex can choose an organization that can act as arbitration center for international business dispute. The arbitration will be on neutral grounds. Reaching a settlement is much quicker and less expensive than going through the courts.
Conclusion
Legal disputes arise anywhere business is conducted. It is the responsibility of both parties involved to conduct risk management and analyze whether or not is worth the risk. The organization operating abroad should always follow the local customs and laws of the host country.