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Addressing International Legal/Ethical Issues Kim Fox April 14, 2013 Law 421 John Arnold

This writer had to take the simulation several times before I could gasp the concept. I began to see the many problems that occurred when it came to the practices and the resolution of international transaction disputes. It took some time to overcome the difficulties of working with two separate sets of protective laws. Issues I realized that there was one agreement forming for two different companies, each possessing their own set of government policies dealing with business. A good start was having each company draw up their own choice of- law clause by doing this each company is protected by specific laws. Considerations such as; the partnership, the original contract, the laws of the government that one is doing business with, future investments, and the relations with the country in which the business is located. One factor that could work against CadMexs decision is that there is always a chance that Gentura may violate the agreement and tell CadMexs proprietary information to competing companies. When conducting business with foreign countries one should always be aware of the laws and customs in place of the country one wishes to conduct business with or make arrangements to do business (Delaney, 2004) The example regarding the shaven beards in the simulation uncovers a conflict between religion and rules. Prabhjot S. Kohli sued LOOC., Inc., (a franchisee of Dominos) for turning down his job application because of his beard. Dominos had a no-beard policy for health reasons, the courts agreed with Mr. Kohli. Foreign problems regarding business law for this weeks simulation are similar to those found in last weeks readings of domestic issues of business law. One similar problem that could occur is a breach of contract. One of the key differences between domestic and international

issues is that in domestic business practices both parties are subject to the same rules, laws, and customs making much easier to work out an agreement. In international business situations that involve the application of two set of rules, laws, and customs may not be settled as easily. I do believe that when dealing with a transaction or agreement between two or more foreign companies these should be a preliminary choice-of-law clause, this would allow the two parties much more room for adjustment, therefore possibly avoiding some issues or complications before they can occur.

References Delaney, L. (2004, December16). 20 factors to consider before going global. Retrieved form http://www.entrepreneur.com/article/75138 Melvin. S.P. (2001), The Legal Environment of Business: A Managerial Approach; Theory to Practice. New York, NY: McGraw-Hill/Irwin.