LAW/421
April 23, 2012
Prof. McAdams
Addressing International Legal and Ethical Issues Simulation Summary
What are the issues involved in resolving legal disputes in international transactions?
All contracts that deal with outside countries must be able to have some type of legal implementation (Melvin, 2011 page). There has to be some type of enforcement on the contract or it may never be resolved.
What are some practical considerations of taking legal action against a foreign business partner based in another country?
The law of other countries is the first and foremost important thing to take into doing business within that country. The United States laws are only upheld within the United States and not in a foreign country. The law that matters is the enforceable law in that country. Contracts are only binding if they have the backing of the law in whatever county or countries they are made in. According to (Melvin 2011); a country can stop all transactions from that business if they file lawsuit on that country.
What factors could work against CadMex's decision to grant sublicensing agreements?
Sublicensing agreements comes into play when the organization has too many of them and does not fully incorporate sub-paragraphs. This leaves the organization up for lawsuits if any of the contracted workers do something wrong and also makes the main organization fully liable for any damages. Even workers within the sublicensing can sue a business formed within the sublicensing agreement (Melvin, 2011).
When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
The local customs and laws of whatever country an organization is operating in should always prevail over the other countries operating locations. Laws only mean something if they are made for that country and can be enforced. Most overseas companies sign a contract to follow the business laws and customs of that country while working there (Melvin, 2011).
How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently?
Both the simulation and the domestic legal issues show that two businesses need to understand each other’s laws and customs before signing a contract. Most times the companies only understand their own laws for their home country and may think that they will protect them in a contract. This is not the case and thus the reason both companies need to hire lawyers that understand the laws from the other country that they will be doing business in. The law can then be best represented from both countries to protect the contract on both ends (Melvin, 2011).
Reference
Melvin, S. P. (2011). The Legal Enviroment of Business. New York, NY: McGraw-Hill/Irwin.
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