Addressing International Legal and Ethical Issues
In this paper, I was asked to complete the Addressing International Legal and Ethical Issues simulation. For a quick briefing, the simulation consisted of two businesses, CadMex and Gentura. Gentura has discovered a breakthrough anti-diabetes agent called ProPrez. They don’t have the resources for manufacturing so they are discussing with CadMex, our business located in the U.S., on establishing a partnership. The questions in which this essay responds to are as listed. What are the issues involved in resolving legal disputes in international transactions? What are some practical considerations of taking legal actions against a foreign business partner based in another country? What factors could work against CadMex’s decision to grant sublicensing agreements? When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. Last but not least, 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?
The issues the presented itself in the effort in trying to resolve legal issues are trying to accommodate with both parties. Being the owner of the company, the focus is on making profit for the company. But at the same time something that should also be considered when resolving legal disputes is trying to please the company in which a contract exists. The reason that both parties needs to be moderately pleased by finding a mean is because as an owner, no owner wants to lose money, but at the same time an owner doesn’t want to ruin any international relationships in case of future investments or partnerships.
Some practical considerations prior to taking legal action against a foreign business partner is trying to find out what the true cause of why the foreign business would even consider or be forced to breach the contract. At that point consider the magnitude of the possible crisis that the foreign business is going through and then allowing that to be its own variable when deciding on whether or not legal action is needed or simply claim compensation or some other alternative route.
According to Melvin, a possible factor that would work against CadMex, if they were to decide on granting sublicensing agreements, is that it may lead to a possible lawsuit brought against them. This is the result of failing to create a concrete contract which covers the potential liability of other parties filing a law suit against the business formed within the licensing agreement.
The local customs and laws of the country shall prevail because a business should always be educated in the customs and laws of the country. It is the set standard for all other business, so by no means should