In the simulation, I had to come face to face with several legal struggles through the business ventures of CadMex and Gentura. The first issue that we had to deal with was the issue of addressing international sales. I decided to go with the option of International Sale of Goods as the choice of law and International Arbitration to resolve any contract disputes. Next, in March of 2012 there was a viral breakout in Gentura that could only be treated with an antibiotic made by ViroBlax. Using the antibiotic from this company would mean a breach of contract with CadMex.
Initially I had chosen to take legal action for breeching contract, but this decision led to protests and the company looking like they cared more about the money than the wellbeing of the people, so the decision was changed and instead we opted for the marketing rights for another drug as compensation for the losses that were incurred. In April of 2012 we ran into the issue of the sales of a generic version of ViroBlax. For this issue, we chose to negotiate for sublicensing local companies for production of ViroBlax.
The last issue that occurred in July of 2015 was that there were standards put into the workplace such as being clean shaven and having a clean look in general. A few men refused to shave for one week in July as it went against their religion. Although the signed a contract stating that they agreed to the workplace policies, it still ventured into a work discrimination issue. We chose to revoke the suspension of the workers and revisit the employment policy in order to avoid a discrimination law suit. What are the issues involved in resolving legal disputes in international transactions? A few things that can happen when resolving legal disputes in international transactions is a choice of law and jurisdiction. Many countries run their government completely different from the Unites States and it could lead to them breaching contract without even knowing or trying to. One example is from the simulation when Gentura breached contract with CadMex over using ViroBlax to help treat the viral outbreak in the country, it caused a breach of contract.
Although it wasn’t the countries intention to breech contract, they were doing what was best for the citizens of the country. In cases like this, the contract can be re-negotiated so that both sides can benefit, the decision was to opt for the marketing rights of the drug which would in favor make up for missed revenue for CadMex and help treat the virus for the citizens. · What are some practical considerations of taking legal action against a foreign business partner based in another country?
Some practical considerations of taking legal action against a foreign business partner based in another country would be the laws. Back to the breach of contract situation in the simulation, originally it was chosen to take legal action against the country for breach of contract. Although this was a necessary step to take when you are going by the law aspect of the situation, that decision ended up in riots and protests, because it would take majority of the countries money.
This could then lead to the country severing ties to company and now longer using their products which would then result in a large loss of revenue for the country. · What factors could work against CadMex’s decision to grant sublicensing agreements? According to Melvin (2011), Sublicensing agreements happen when the organization has too many of these agreements 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. · When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why. I believe the local customs and laws should prevail because the organization is operating within their territory. You can’t enforce American laws and customs in another country. Every country runs their government a little differently and it is unfair to make another country change their laws or customs because the organization isn’t from there.
If the organization was operating within the United States then the laws and customs of America should be enforced, but because they aren’t then they need to strictly follow the guidelines of that country. · 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? They are very similar to each other in the sense that there will always be legal disagreements when there are two parties disputing over what each side wants when it involves working internationally.
According to Melvin (2011), whenever two businesses make the decision to enter into a contract, they each want their own country law to apply because it would protect them. The opposite happens when a business decides to do business outside of their own country. They are not accustomed to the laws of other countries. For companies to protect themselves, they should hire a lawyer who is familiar with the country they are going to do business in. In this manner, the lawyer can read the contracts and ensure both parties have proper protection.