LAW 421 Week 2 International Legal And Ethical Issues

International Legal and Ethical Issues Simulation Summary
Richard Nires
University Of Phoenix
Contemporary Business Law
LAW/421
Thomas Friedman
July 31, 2013
International Legal and Ethical Issues Simulation Summary
What are the issues involved in resolving legal disputes in international transactions?
“When a U.S. company enters into an agreement located in another country, it must ensure the contract is legally enforceable” (Melvin, 2011). The same would apply to an international business, and they should be fully aware of any changes made to international laws and legislations.

What are some practical considerations of taking legal action against a foreign business partner based in another country?
The most important aspect a business should consider is the laws of the country that it enters into when doing business. A law in the United States is may not be the same as a law in the foreign country. If a certain law is broken, just because the law is enforceable in the U.S., it may not be enforceable in the foreign country. Although contracts are binding agreements, they are only binding if the law agrees. One last thing to consider are certain countries can deny further business transactions in that country should they file a lawsuit (Melvin, 2011).

What factors could work against CadMex's decision to grant sublicensing agreements?
The problem with sublicensing agreements is when a company or organization chooses to develop multiple amounts of them, the more they increase their chances of having a lawsuit brought against them. Should the company forget to include in sub-paragraphs within the contracts relieving them of any legal issues because of the agreements, they can be fully liable for any monetary damages. These monetary damages could be from a business or person suing one of the businesses formed within the sublicensing agreement (Melvin, 2011).

When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
When local laws and customs conflict with the laws and customs of an organization operating aboard, there needs to be no explanation. The laws and local customs of the country that the U.S. company decides to do business with would prevail. In most situations, the U.S. based business would have to sign a contract stating they would conduct business in accordance to the laws and customs of the country (Melvin, 2011).

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?
Whenever two businesses choose to enter into a transaction, each business wants the laws of their country to apply and protect them. Unfortunately, this is not the case. When companies do business domestically, they already know the laws that apply and protect them. When they do business internationally, they do not always know what laws apply because they are not familiar with those particular countries laws. In order to protect them, each country should employ a lawyer who is familiar with the other countries laws. In this manner, the lawyer can read the contracts and ensure both parties have proper protection (Melvin, 2011).
Reference
Melvin, S. P. (2011). The Legal Enviroment of Business. New York, NY: McGraw-Hill/Irwin.