Foreign Law

The issues involved in legal disputes in international transactions are abundant. It is imperative that laws and decisions are made while thinking of all of the possible outcomes. Legal disputes can be messy and challenging to solve. One bad decision can cause issues not only with the company doing business, but also with the government and economy of both countries.

When working with foreign business partners it is important to have a good legal team to advise companies of all of the considerations that must be taken when using any type of legal action against a foreign partner. Legal action taken against a foreign business partner can cause issues with the partnership as well as with the reputation of the business within that country. Discussing and analyzing any legal action that will be taken is wise to ensure it does not cause tension or diminish the partnership.

Factors that could work against CadMex’s decision to grant sublicensing agreements would be loss of control over the licensed product as well as a loss of potential income. By sublicensing the company is losing a portion of the proceeds. The quality of the product could also be at stake. Potential legal issues could arise from sublicensing as well.

The custom laws of the country where business is conducted would take precedent over local custom laws. If the operations are happening abroad in a different country the country in which business is being conducted would have authority. Local laws are only applicable to the area in which they are applied.

The comparisons between this simulation and the Week One readings are the need for contracts and laws. It is also wise to hire a lawyer and understand the necessary laws applicable to the situation. International issues must be handled according the laws and terms of the contract. Domestic issues can be resolved much easier because the United States laws are more known and understood. It is wise to have an experienced individual involved to help...