International Legal and Ethical Issues Simulation Paper

International Legal and Ethical Issues Simulation Paper

As a company conducts business abroad it will face international and ethical issues. It is essential for the company to understand how to resolve issues in a timely manner and within the laws of the country that please both companies. In the simulation, CadMex Pharma, a pharmaceutical company in Florida has entered a partnership with Gentura, a biotechnology company in Candore. CadMex is facing a breach in contract by Gentura and needs to resolve the legal issue.

The issues involved in resolving legal disputes in international transactions include choice-of-clause, what forum to use to settle disputes, and if the agreement is binding or non-binding. The choice-of-law clause in contracts states, which law is valid when a dispute arises between the contracting parties. The forum selection clause establishes what forum the dispute will be settled in. The three forums available between CadMex and Gentura are international arbitration, Candore court system, and the United States court system.

A viral epidemic threatens Candore’s population and Gentura is under pressure from the government to subsidize a new viral treatment called ViroBlax to help combat the virus. Subsidizing ViroBlax would violate the contract agreement between Gentura and CadMex. CadMex must decide whether to take legal action or allow Gentura to subsidize ViroBlax because of the viral epidemic.

When taking legal action against a foreign business partner based in another country some practical consideration include what is the best interest for the company in present and future endeavors. Other considerations include ethical and legal issues that may arise from legal actions. When considering its decision against Gentura, CadMex decides not to take legal action for breach of contract. The company will assume marketing rights from other drug companies to compensate for the loss it took because of the ViroBlax subsidy.

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