Virtual Organization - Riordan Manufacturing

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International Business Legal Issues
Riordan Manufacturing
University of Phoenix
BUS415 Business Law
Scott Waddell

Riordan Manufacturing is an industry leader in plastic injection molding with plants in Georgia, Michigan and now China. With the company's expansion into a global market, the electronic commerce (e-business) will be a beneficial form of commerce that is currently flourishing in the modern world of global business. The Internet is used to buy and sell goods and services world wide. Cheeseman (2004) explains that the economic growth of computer technology and e-commerce has exceeded that of manufacturing in the United States economy. E-business is used to increase productivity and efficiency in sales and marketing, to strengthen customer relationships and to help in the export of its products globally. Riordan understands that legal and regulatory protection is required, the cultural differences of the customers must be understood, and they must find solutions for incorporating preferences and e-business restrictions and protection to support their stockholders. Legal and Regulatory Issues

The Export Administration Regulations (EAR) regulates the exporting of items for national security foreign policy and nonproliferation (controlling an excessive spread). All exports from the U.S. must be documented as specified by the EAR and must be cleared through the U.S. Customs. Violation of federal customs laws would be tried in a Federal Court. Unnecessary obstacles relating to exporting have been removed to help global business. According to International Legal Considerations (2007), some export items may require a license depending on the technical characteristics, the destination, the end use and the user. Riordan has found that once the export items they manufacture have been classified, it can be determined if a license is required for exporting to the different countries they want to...
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