University of Phoenix
International Legal and Ethical Issues
The “Addressing International Legal and Ethical Issues” simulation discusses the contract between a US pharmaceutical company called CadMex Pharma and a company called Gentura in the country of Candore. When international agreements are made, the company has to make sure that the contract is legal and the terms will be enforced. Defining contract terms explicitly is very critical. For example, deciding which laws will govern the business decisions (local, American, or popular international), and the Forum Selection Clause where the type of dispute resolution is specified. International arbitration is the most commonly used contract dispute resolution because it’s cheaper and business can go on as usual while the dispute is in arbitration. Examples of International business transactions are technology transfer and product licensing. Intellectual property rights are another feature of international business. Intellectual property includes processes unique to the business, designs, trademarks, products, and copy rights. Although patent laws protect intellectual property rights, this is the most commonly disputed part of international contracts. Unfortunately there are situations that are out of the company’s control, such as an epidemic. Other factors that may influence a dispute are political pressures, international laws, or cultural influences. Cultural and religious differences can cause employment issues. One issue Gentura and CadMex faced was at the research center. Male employees had to sign an agreement to be clean-shaven. During one week of the year a religious group, Aranian, doesn’t allow the men to shave. These men were suspended for not shaving but turned around and filed a lawsuit claiming religious discrimination. When taking legal action against a business partner in another country, a company should consider the financial, legal,...