International Business

The world of international business can at times be a difficult place to navigate. The legal standards of conduct vary greatly depending on the nation in question. When we do business outside the United States which nation’s laws will we be accountable to? What could be the consequences of violating the statues of another nation in which the company is doing business? Also what moral standards will the company face in the other nations in which it does business? To really fulfill the mission of our corporation it is necessary to expand outside the borders of the United States. This can bring many legal and moral issues to the forefront which might not be of as great a concern in the United States where these types of issues are known and familiar to us.

CadMex has technology and know how that Gentura needs. Gentura has a new product that CadMex can profit from. However, CadMex must be careful regarding the possible legal implications of any dispute between the two companies. The first consideration in the forming of a contract between the two companies is the forum selection clause. If there is a dispute between the two companies it is important to know ahead of time how the dispute will be resolved. Because CadMex is a company based in the United States we would obviously prefer to handle litigation in the United States if such litigation becomes unavoidable. The problem that could arise with that option is that under the Foreign Sovereign Immunities Act, Gentura could not be held accountable in U.S. courts because the Candorean government is a partial stockholder in the company. A better solution would be binding international arbitration. If there is a binding international arbitration clause in the contract that would allow the dispute to be resolved in a neutral setting with the parties forced to comply with the arbitration’s ruling. This would prevent Gentura from pulling back from a decision made at the international arbitration if it didn’t go their...