International Legal and Ethical Issues Simulation Analysis

Businesses must ensure legal protection from other foreign country companies from adverse actions. There is high risk in international business transactions and CadMex need to protect against them. Steps to protect the business legally is crucial when selecting the choice-of-law, and selecting clause in the simulation. Establishing terms in a contract is important factor in a business partnership between foreign countries to protect interests for each party.
After completing the first section of the simulation identifying the choose-of-law in the United States regarding specific contracts is Contract of International Sale of Goods (CISG) for domestic business transactions that cover marketing ProPez. CISG laws cover the use of technology in this case with Gentura; however, does not cover licensing or patents.
International Arbitration non-binding contract provides variety of dispute resolution organizations to resolve contract disputes may take a year instead of awaiting court availability in this case, it is less expensive, and recognize contract internationally. This option safeguards CadMex’s interest with certain contingencies under contract law applicable in this case. After Candore gained World Trade Organization (WTO) the best choice remains CISG fits terms in the contract cover marketing ProPez and technical training, but does not cover patents and licensing.
In March 2007 an unidentifiable viral epidemic occurred in Candore. Candorean government plans to subsidize a generic brand of ViroBlax manufactured from Gentura. Should Gentura manufacture the drug as planned this would become a break of contract between CadMex and Gentura and would allow the company to begin arbitration process. By agreeing to subsidy for loss and not taking legal action and sharing marketing rights of another drug by Gentura provides opportunity to recoup any losses and receive compensation from the government subsidizing the generic brand ViroBlax if agreed.
With the increase percentage of outbreak of the unidentifiable viral epidemic in Candore and unexpected demand for ViroBlax the government is considering a generic version from another domestic pharmaceutical manufacturer. Should Candore government decide to allow production of a generic version ultimately CadMex license and patents are in jeopardy of a possible suspension. By negotiating sublicensing with the local pharmaceutical companies this possibly ensures CadMex future royalty payments because the company is the holder of patent for ViroBlax and avoids legal ramifications regarding revoking licensing of the generic brand which would be a violation of the drug patent.
In July 2015 labor and employee reforms were implemented in Candore. CadMex had suspended five employees because of refusing to shave beards (University of Phoenix, 2013). Within the Cadorean religious culture for one week out of this month individuals do not shave unknown to CadMex. The employees threatened to file lawsuit against CadMex claiming religious discrimination, and the union is threatening a possible strike. In the short-term revoking the suspension allows to research and make accommodations for employee’s religious practices and in the long-term a revision of company’s employee policy is necessary to provide reasonable accommodations.
By taking steps to protect the business legally when selecting the choice-of-law, and selecting clause allows CadMex to do business overseas. In a business partnership between foreign countries CadMex did takes steps to protect their interests, and illustrates negotiation ability by establishing sublicensing for generic brand of Virblax to meet the needs of Candorean and maintain future royalty payments with being the holder of the drug patent. With the threat of possible employee lawsuits CadMex can handle short-term and long-term religious discrimination issue by providing reasonable accommodations. The simulation assists in recognizing the complex and risk of international business transactions. 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. (2013). Addressing International Legal and Ethical issues [Multimedia]. Retrieved from University of Phoenix, LAW421 website.