Addressing International and Ethical Legal Issues What are the issues involved in resolving legal disputes in international transactions? When a business operates internationally, they inevitably will be faced with the task of confronting legal disputes with their international partners or within the host country they are doing business. These situations will demand that certain issues be addressed in order to resolve the dispute. Issues such as the legal forum of resolution and the applicable local or international law will be relevant concerns when resolving legal disputes, and should be known by the commercial participants prior to the occurrence of a dispute. In the case of the course material simulation, a question posed to the student related to which forum a complainant should refer their case in the event of a legal dispute between CadMex, a U.S. based company, and Gentura, a company based in the Southeast Asian country of Candore.
International Legal and Ethical Issues Law 421 International Legal and Ethical Issues When conducting business in another country corporations may run into many ethical and legal problems. The way things are done in one country may be total opposite from another country. This is the reason why there are international conventions and courts. Although there is international conventions not all countries have signed up to be a part of these conventions. Many ethical issues may arise when conducting international business.
But these are limited in use to certain circumstances. The binding part of the judgement is called the ratio decidendi and later courts are bound to follow legal principles on which the decision was based if their case contains similar facts, as for example, in Donoghue V Stevenson (1932) a precedent was set that a customer could sue a manufacturer in negligence. Obita Dicta (other things said not directly related to the decision or dissenting judgements), are persuasive rather than binding precendents, as seen
Legal issues and ethics also effect management. Many influences, external as well as internal, also affect the way Tyco does business. Applying Tyco's strategic, tactical, operational and contingency plans will help manage these outside and inside influences without disrupting the ongoing success of the business.” Tyco applies the four functions of management: planning. Organizing, leading, and controlling to their
There may be occasions when the involvement of a national court is necessary in order to ensure the proper conduct of arbitration . One of such example is the use of an anti-suit injunction in the context of international arbitration . Through such an injunction, a party can be ordered not to pursue proceedings initiated in breach of an arbitration agreement. This is, in part, to hold the parties to their contractual agreement and also out of concern that those proceedings unless restrained could frustrate the on-going arbitration. The concern has always been that such tactical proceedings (usually termed “Torpedo actions”) are expensive and it leads to delay .
Knowing the legal requirements for making binding contracts is important. Contracts provide the means for individuals and businesses to sell or transfer property, services, and other rights. Without enforceable contracts, the business world would collapse. A contract is defined as an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law. (Black's Law Dictionary, 2005) The agreement will create rights and obligations that contracts, in many instances, do not have to be in writing to be legally binding.
Role and Functions of Law LAW/421 Contemporary Business Law Role and Functions of Law In society law functions to maintain social control and to protect the public at large by resolving disputes in a peaceful and reasonable manner. Laws are made to facilitate organized change by creating acceptable processes that can facilitate and lead to change. The Constitution outlines the power of the federal government which only has limited powers; to regulate individuals and businesses; and states are left with more inherent powers to protect their citizens. The Constitution of the United States was designed to have three general functions that include establishing a structure for the federal government and rules for amending the constitution, granting powers for different branches of government, and to provide procedural protections for US from wrongful government action. The Constitution is composed of a preamble, seven articles and twenty seven amendments.
Whereas, ‘morality’ is defined by the Macquarie Concise Dictionary as “conformity to the rules of right conduct; moral or virtuous conduct”². Whilst, ‘Laws’ are defined by the Macquarie Concise Dictionary as “the principles and regulations emanating from a government and applicable to a people, whether in the form of legislation or of custom and policies recognised and enforced by judicial decision”². Denning’s statement is flawed, generally because religion can lead people to unethical or immoral acts. Additionally, religion has allowed people to achieve things that are illegal and often have not faced justice. Finally, there are evident differences with religion and laws and morals of a society, whereby morals and laws are able to change liberally, unlike religion.
They expected to become as successfull as in Indonesia as long as they keep consistent on their standard quality for their product. To operate internationally, Cimory must understand the international marketing environment that concerns on the international trade system, economic environment, political-legal environment, and cultural environment. LOOKING AT THE GLOBAL MARKETING ENVIRONMENT When selling to another country, Cimory may face restrictions on trade between nations. The restrictions are in the form of government regulations. The company may face tariffs, taxes on certain imported products designed to raise revenue or protect local firms.
Also important to consider are the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin. Although the international business differs from the domestic business due to the reasons below • Countries are different in a range of ways: cultures, political systems, economic systems, legal systems and levels of economic development. • The range of problems confronted in an international business is wider and the problems nmore complex than those in a domestic business. The managers of an international business must decide where in the world to site production activities so as to minimize costs and maximize value added. They must decide whether it is ethical to adhere to the lower labor and environmental standards found in many less-developed nations.