University of Phoenix
April 15, 2013
Addressing International Legal and Ethical Issues
There are several issues involved when resolving legal disputes in international transactions. Sometimes the local customs and laws conflict with the customs and laws of an organization operating abroad. However, the anticipation of disputes and the methods of resolving them should be included as a dispute resolution clause within this international transaction. Resolving Legal Disputes
There are two ways of resolving legal disputes for international transactions: Alternative Dispute Resolution and the Adversary system. The Adversary system means the dispute will be settled in court by an impartial judge with both companies represented by an advocate. The Alternative Dispute method involves settling the dispute without going to court. It consists of negotiations between the two parties with the assistance of a third party on occasion. However, one system is faster and less costly, but the other system allows concerned individuals to be heard. Issues in International Disputes
According to Mendell (2013), "It is the responsibility of lead counsel in an international transaction to determine the most tax-efficient way to have the money flowing both into a jurisdiction and flowing back out." Taxes, competition, and purchase price issues are the main problems disputes deal with regularly. Of course, everyone should remember that environmental, ethical, and political issues will override any compensation of money a company may receive from a transaction. Sometimes the local customs and laws will clash with the organization operating abroad. When this happens the Adversary system should be used because it will allow the individuals who live in that country a chance to be heard. These individual's livelihood is at stake. They live in that...