International Legal and Ethical Issues Essay
International Legal and Ethical Issues
A biotechnology company based in Candore called Gentura is contemplating entering into a partnership with a pharmaceutical company based in Florida called CadMex. Candore is a small dictatorship country. Gentura started their company by manufacturing enzymes and has grown into a biotechnology company with a focus on biopharmaceutical products. ProPez is an innovative anti-diabetes agent recently developed by Gentura. The company believes ProPez’s marketing potential will be massive. Because Gentura has no marketing or manufacturing resources, they began discussing a possible partnership with CadMex.
Resolving Legal Disputes in International Transactions The choice of law determines the applicable jurisdiction if a dispute should arise between the two contracting parties. The companies have an option of litigation or using an alternative dispute resolution (ADRs). Mediation or arbitration is preferable over litigation because the costs are much lower and less time consuming. CadMex and Gentura decided international commercial arbitration would be their best route. The two parties will design a written agreement as a guide for the arbitrator to follow and know what his or her powers will consist of.
An arbitrator from a neutral country will enhance the fairness of the decision. He or she has the same powers as courts do but may ask for assistance from the court in some instances. Considerations of Taking Legal Action Against a Foreign Business Partner When negotiating contracts one must consider the choices of law clauses. CadMex selected the Candore Regulations for Technology Import Contract with will benefit CadMex in that Candore will most likely enforce their own regulations.
More considerations should be addressed, such as policies of the foreign government, cultural differences, and employees. These will greatly affect the way businesses conduct themselves in different countries. Sublicensing Agreements Sublicensing probably will work well for CadMex, but there are more factors to consider, such as the length and extreme costs for complying with the standards of production after sublicensing. This will keep CadMex’s goodwill and meet the requirements of control for Candore.
CadMex would prefer a generic brand, but the Candorean authorities would probability reject it because of the low cost of generics. Which Customs Should Prevail if Conflicts Prevails Abroad There is a conflict with the different laws when mediation or arbitration break down, companies break contracts, or conflict intensifies. [Insert comma here to set off the adjective phrase beginning with “according to” (unless it is a dependent phrase)] According to the principles of federal supremacy the United States Constitution and treaties rule supreme and take precedence over local laws and customs.
Comparing Issues in Simulation to Issues Discussed in Week One Readings These issues compare to procedural law because laws provide a framework and makes rules for seeking existing rights. International companies could also use common law with the courts making the laws based on past cases that have facts that may be similar. Domestic and international companies should resolve disputes fairly. This means to take both sides into account and judgment should be free from any form of bias.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 27 September 2016
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