Addressing International Legal and Ethical Issues Simulation Summary

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Addressing International Legal and Ethical Issues Simulation Summary Brenna Hogue LAW/421 Nikki Chtaini May 5, 2014 The simulation discussed a business agreement between two international companies, CadMex Pharma and Gentura. When one company enters into a contract with another company located in a foreign country, both parties need to ensure that the contract is legal in both countries. Defining all the terms of the contract in a detailed and explicit manner is crucially important. When both parties have clear terms of the contract, there will be less chance for any type of dispute to occur. From an ethical standpoint, Gentura faces quite the dilemma due to the rare viral epidemic currently plaguing the country of Candore, where the country is located. Candore’s health department estimates that approximately 1 percent of the population will be infected with the virus. Due to this, the country’s government has been placing a lot of pressure on Gentura to subsidize the production of ViroBlax, in an effort to contain and possibly eliminate the virus. If Gentura decides to subsidize ViroBlax, it would result in a direct violation of the payment terms of the contract made with CadMex. The legal aspect of this situation is actually quite clear. If Gentura decides to subsidize the production of ViroBlax, it would violate the terms of the contract. This would place Gentura in a breach of contract with CadMex Pharma, in which CadMex could file a lawsuit. There would be three ways in which this matter could be handled. First, CadMex could seek judgment against Gentura for the breach of contract in a court of law. CadMex Pharma could also force Gentura into dispute resolution, or both parties could amend the contract to allow Gentura to subsidize the production of ViroBlax. From a business standpoint, CadMex Pharma would face a financial
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