International Legal and Ethical Issues
22 Oct, 2012
Addressing International Legal and Ethical Issues
How we handle international legal and ethical issues is a key factor to either developing a business overseas or dealing with international business partners. Of the many issues involved with in international legal proceedings, an understanding local law and dispute resolution can be mitigated with the selection of proper counsel.
Resolving International Legal Disputes
Since not all foreign countries require lawyers follow the same standards as American lawyers, it is advisable that local counsel be hired to navigate the local laws that claim jurisdiction where the transactions or business will be conducted. Using this local counsel to answer the relevant questions such as foreign exchange controls, environmental issues, required governmental consents among others the Lead counsel will be able to form a plan. It is essential that the local counsel is brought on early in the process because many time sensitive issues may cause delays and in turn cost the company money. When Companies come from different jurisdictions they will try to make a case that their laws should be the one governing the case. This is usually based on financial gain or loss. If there is not an agreement the lawyers will usually agree on third party jurisdiction. If this happens the lawyers and companies must both know the laws and regulations in the agreed on jurisdiction. Most contracts involving international business will contain language concerning dispute resolution. Although there are many avenues available for dispute reconciliation it is highly recommended that both side agree on an impartial and equitable solution, thus avoiding legal proceeding that are both costly and create discord in future business dealings.
Taking Legal Action against Foreign Business Partners
It is vitally important to choose the correct law clauses to be agreed on during...
References: Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
University of Phoenix. (n.d.). Addressing International Legal and Ethical Issues [Multimedia]. Retrieved from University of Phoenix, LAW421 - ContemporaryBusiness Law website
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