The Export Administration Regulations (EAR) regulates the exporting of items that must be documented as specified by the EAR and must be cleared through the U.S. Customs. Some exports may also require licensing (Export.gov). If these laws are violated, Riordan could face fines. It is the responsibility of managers to educate their associates and provide training on these laws so no violations will occur. This will also aid in preventing violation of any
For example, in the simulation CadMex must decide between CISG and CRTIC. The company is basically decided whether to follow an international trade agreement or follow the local trade agreement for the country they want to establish in. Once the choice of law is approved by the local government of then a forum is proposed. A forum selection clause specifies a forum to which a dispute between two conflicting parties will be settled. International Arbitration is a less expensive, neutral way to settle a dispute.
International Legal and Ethical Issues Keith Shaheen LAW 421 January 17, 2013 Simone Tyler International Legal and Ethical Issues Setting up a contract between Cadmex Pharma; in the United States and Gentura in the country of Candore; must be mutually beneficial for both companies. The contract should protect the rights of a company against any disagreements or disputes. American business in foreign countries will need to consider the different cultures, customs, ethical differences, international laws, and political situations when negotiating any contracts. Both companies will have to determine which laws to follow when attempting to resolve any disputes. In this scenario there are two types of laws to choose from are,
If we don’t follow the laws, regulations, and conventions then we take responsibility for the action and accept the consequences. The fifth CRT principle speaks of support responsibility to globalization. The business should support improvement of domestic rules and regulations where they unfairly get in the way of global trade (Caux Round Table, 2003). This could be compared to White’s second guideline regarding honesty. Even though we will often be unsuccessful, our objective must be total honesty (White, 1978).
If a situation should occur then the company could be covered by t the Conflict of laws which has three branches , Jurisdiction whether the forum court has the power to resolve the dispute at hand, Choice of law the law which is being applied to resolve the dispute, and Foreign judgments the ability to recognize and enforce a judgment from an external forum within the jurisdiction of the adjudicating forum. When a company enters into a contract with another company overseas the contract should be clear of which area their conflicts will be solved. Most often it is more cost effective to leave these conflicts to arbitration, more so if the company is not a part of any international trade groups. Foreign judgments can also be a great tool if they are on a neutral ground. Either foreign judgments or arbitration must have a binding clause in the contract to
Week 7 DQ 1: "Detecting Unethical Practices at Supplier Faculty" Please respond to the following: Assess the value of having a Supplier Code of Conduct when outsourcing operational functions to international markets and the enforceability of such a code. Evaluate whether or not you believe a U.S.-based company outsourcing jobs to foreign markets is ethical. Support your position. Assume that you have to make the decision to outsource work to a foreign market. Determine what country would be your best option.
The courts can intervene when needed to make decisions when issues arise concerning rendered services. The UCC promotes commercial efficiency by providing standardized procedures and rules for the sale of goods or tangible items by merchants. This concept was a foundational cornerstone in realizing there are laws available in the United States that protect both merchants and consumers. The UCC intervenes when merchants do not have formal contracts in place or when the contract can not be fulfilled without a legal and valid reason. This is known as a breach of contract.
Businesses are required to follow U.S. laws and regulations when conducting any type of business around the world. For our business to be successful, we must always be vigilant in contacting other local businesses in other countries to establish a new market through their cooperation. A benefit of this partnership with locals is the fact of them knowing their legal system and their on regulations in place that could possibly affect business negatively. With these legal and regulatory forces in play, this is our we will help grow our company by expanding and leading the market in our
As many companies who are international have had to do, Levi Strauss will need to find a method that all of their companies can agree with and keep it going while being ethical. This will help the company to prevent any, and in some cases all controversy. Conclusion With many companies in the international market, it is as important as ever to remain as ethically sound as possible. With the goal of increased earnings comes additional responsibility to accommodate all countries and their ethics. By modifying how the company does business outside of the United States, Levi Strauss and Company should be able to accommodate social factors as well as moral factor which will allow the company to be successful for years to come.
On the other hand, because corporations are considered legal persons, courts use the same principles to determine whether it is fair to exercise jurisdiction over a corporation. A corporation normally is subject to personal jurisdiction in the state in which it is incorporated, has its principal office, and/or is doing business. Courts apply the minimum-contacts test to determine if they can exercise jurisdiction over out-of-state corporations. The minimum-contacts requirement is usually met if the corporation advertises or sells its products within the state, or places its goods into the “stream of commerce” with the intent that the goods