Addressing International Legal and Ethical Issues
Contemporary Business Law/LAW 421
Monday, 18 February 2013
The issues involved in resolving legal disputes in international Transactions are the changes that are mad to international laws and regulations. The largest focus is the minimum wages. What is most discussed is China has a cheap labor force compared to America. This increases the profits for the company who outsources to cheaper labor cost. If the China manufacturing do not meet the US standards the US Company may become obligated to take legal action against the China Company. The American Company must take into consideration if the China Company meets their manufacturing requirements. The most common discuss topic on this matter is the lead based paint China Manufacturing applied to their products. American laws banned lead based paint and all products in China did not have an obligation to change their paint because China did not ban the lead in the paint. Once the orders started to return because it didn’t meet the US standards, China standards and laws did not change, however the China Company changed its paint to continue business with its foreign business partner. This strengthened the relationship and caused for contracts to outline such changes in manufacturing requirement. To cover the purchase of illegal products a contract must be agreed upon between the companies. This is the same in the way CadMex granted sublicensing agreements. This places CadMex as the liable party in a lawsuit. Without total control over the loosely worded contracts they become vulnerable to loop holes when law suits are filed against them. When the local customs and laws conflict with the customs and laws of an organization operating abroad the company that produces the product has the responsibility to abide by the ordering countries laws. When ordering products the contracts should stipulate the required regulation standards. If both parties agree upon the...
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