Addressing International Legal and Ethical Issues Simulation Summary Thomas joe
November 24th, 2014
Being well informed of the procedures and considerations on how to address international legal and ethical issues is crucial in the development of strong business relationships with foreign businesses. Many issues involved in resolving international legal disputes including selecting local counsel, full understanding of the local laws, due diligence, and the choices surrounding law and dispute resolution must be measured in order to make good choices when performing business abroad. Through the simulation, there were many factors that could work against the decision for CadMex to grant sublicensing agreements but with good understanding of the law it was a good deal for the company. Laws and customs in different countries can be conflicting, especially when businesses are managed by the government. Resolving legal disputes in international transactions
Selecting local counsel
In a business transaction, local counsel should be selected in both countries involved. This is an important step to be completely sure that all legal aspects have been covered. In the case of partnerships, both organizations should be well educated about the law related to their transaction through counseling. Selecting a law firm that has expertise in international business can be possible in most countries. One detail to consider is the fact that not all foreign lawyers follow the same standards as lawyers in the US. It is important to fill a confidentiality agreement to make sure that the information would not be divulged. The lead counsel is responsible for selecting local counsel with the expertise necessary to provide guidance and orientation to the client. Sometimes more than one firm can be needed to achieve the maximum expertise necessary for the client. The reason is that some firms are experts in an area and others in other areas. The lead counsel choose the best local counsel for the client but keeping his expertise a priority. Maximum Understanding of Local Laws
After the selection of proper local counsel, the goal is to have all the information needed regarding local business related to the transactions that are being made. Many of these laws are related to foreign exchange controls, environmental issues, required governmental consents, to name a few. This information will guide the lead counsel in how to continue with the case or how to provide advice to his client. Time is an important factor of legal counseling because some of the issues that could be addressed can have deadlines or time limits. Due Diligence
An investigation or research of the assets, operations, finances, and even policies is necessary before closing a business deal between organizations. Some lawyers have due diligence questionnaires designed to create an image of a company and its position in a market to consider the possibilities of purchase or partnership. The proficiency of the language can become an issue in multi-jurisdictional transactions where both countries have different languages. However, the documentation used in cases like this is pressed in both languages to avoid confusion. Carrying a decent process of due diligence has many advantages, if the lead counsel can read, write, and understand different languages (especially the both languages involved) has even more advantages for the client. The examination of contracts and other documents is mostly focused on the commercial terms. However other issues that could represent financial responsibilities for an organization have to be considered, for example pensions or settlements. Choices of Law and Dispute Resolutions It is common that both clients involved in international transactions would like that their laws would be controlling every transaction that they are involved in. Hopefully the clients have lawyers who...
References: Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin University of Phoenix. (n.d.).
Addressing International Legal and Ethical Issues [Multimedia]. Retrieved from University of Phoenix, LAW421 - Contemporary Business Law website.
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