Second, the probability of a foreign entity successfully winning a civil suit against a domestic entity will most likely be very low. LAW Week 2 What are the legal issues involved in determining the best way to resolve legal disputes in international transactions?
This highlights the importance of conducting ample due diligence before investing in operations in a foreign country. Laws are designed to protect the people of the domestic country and firms must work within these constraints.
If the company is in violation of the law, they will be subjected to the legal system in the foreign country. In principle, the international legal issues are very similar to domestic issues. To overcome this risks is important for the company to perform ample research and due diligence before entering into an international contract.
Litigating through a foreign court system is likely to be very expensive and have a low success rate, thus it should only be used as a last resort. If possible, it is best to resolve disputes in following order: For example, if a U.
Ultimately, building a strong understanding of the legal and political systems that exist in foreign countries can mitigate this risk. The Canadian government has a vested interest in seeing domestic industry thrive, therefore, it may not want to cede market share to a foreign corporation.
Companies face a much large risk when operating internationally because they must comply with a completely different set of laws. The customs policies of the country receiving the goods should prevail.
When a person or business breaks the law in a foreign country, they will be forced to abide by the legal process and punishments given in the foreign country.
Taking legal action against a foreign business partner has several practical considerations.
If this event were to take place, CadMex would have very few remedies to profit from its sublicensing agreements. How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings. If the foreign legislators believe sublicensing will hurt domestic firms, they could take steps to prevent the deal from going through.
In extreme cases, foreign governments have seized assets of foreign businesses for violating local laws. First, the cost of taking legal action will likely be much more expensive due to the increased need to research laws applicable to the country. Third, suing a business partner could adversely affect the brand reputation and make other international partners cautious of doing business with the company.
When the local customs and laws conflict with the customs and laws of a U. In the simulation, CadMex is faced with the challenge of sublicensing its products in international markets. When legal disputes arise internationally, the legal requirements between two countries may not always be compatible.
It is often much more favorable for both parties to resolve disputes behind closed doors with mediation or arbitration, as opposed to a formal court system. What are some practical not legal considerations of taking legal action against a foreign business partner based in another country?How Should Companies Resolve Domestic and International Issues Differently?
From the chapters in week one’s readings and the scenario that was presented in the simulation, it appears that the only real difference between international and domestic issues are how they are handled.
Addressing International Legal and Ethical Issues LAW/ Contemporary Business Law October 4, Addressing International Legal and Ethical Issues In the “Addressing International Legal and Ethical Issues” simulation; a company named CadMex was in discussions to do international business with a company from Candore named Gentura.
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Law - General Law Complete the Addressing International Legal and Ethical Issues.
Law - Completethe Addressing International Legal and Ethical Issues simulation. Tutorials: Feedback Score: 96% ( ratings) Purchase it. Report this Question as Inappropriate Question. Law Completethe Addressing International Legal and Ethical Issues simulation How should companies resolve domestic and international.
How would you compare the issues in this simulation to the domesticlegal issues discussed in your Week One readings? How shouldcompanies resolve domestic and international issues differently?
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