Issues involved in resolving legal disputes in international transactions?
An international transaction refers to a commercial undertaking, the object of which is in a foreign jurisdiction. Selection of a local counsel is of crucial importance. This is crucial because it ensures confidentiality, trust and commitment. He also clears conflicts under local laws. Local counsels also provide information to foreign lawyers on a need to know basis. On the selection of a local counsel, he answers various questions pertaining local jurisdiction including how transactions will affect previously issued government taxes, permits etc (Mendell 2005). Language proficiency is a major factor in multijurisdictional transactions. This is because it is not uncommon to have underlying documents in various languages. Effective taxes among other structuring issues also arise in that those concerned have to determine the most tax efficient way for money to flow among various jurisdictions (Mendell 2005). The choice of law to be applied in case of a dispute also arises when parties from different jurisdictions insist that their law is the governing law.
Practical considerations of taking legal action against a foreign business partner based in another country.
In case of a dispute with a foreign partner, one needs to review the written contract with the foreign party. The contract defines the governing law together with the jurisdiction clauses. The governing law stipulates which country’s law will be applicable in case of a dispute under contract. In the absence of a contract, the standard terms of agreement set by either party will apply. Legal expertise may be needed if both parties have their own terms to determine whose terms apply (Mendell 2005).
Factors could work against CadMex's decision to grant sublicensing agreements.
When Cadmex Pharma sought to partner with Gentura, a biotechnology company in 2007, it was hoped that Gentura would mass-produce an antidiabetes medication in exchange for global marketing rights. However, the partnership could be hindered by such factors as choice of law and jurisdiction clauses. Further, Candore, Gentura’s country of origin was not a signatory to any international trade conventions. As such, Gentura in its best financial interests could violate the non-disclosure agreement set between the companies and sell Cardmex’s copyrighted information to the highest bidder.
When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? Explain why.
A court presiding over the matter considers such factors as linking the legal issues connecting the laws of potentially relevant states. It then applies the laws with the greatest connection. Local laws and customs are considered supreme. This because governing law in case of a conflict will be of the place where the transaction physically took place (Mendell 2005).
How would you compare the issues in this simulation to the domestic legal issues discussed?
By partnering with Gentura, Cadmex Pharma is bound to lose by transacting with an international company due to conflicts arising from the choice of law to be applied in this case. Gentura is located in a country governed by a dictator. In addition, the fact that its host country is not signatory to any international conventions means that Cadmex will have to apply Candore’s law in case of a conflict. This is because the occurrence leading to this litigation is the controlling law.
How companies should resolve domestic and international issues differently.
Local and international transactions have unique differences. This is because there are different approaches to undertaking transactions. A company faced with international issues may prefer to apply international arbitration in order to avoid uncertainties and local practices arising from litigation in national courts. Further, domestic and international issues are resolved differently to achieve quicker decisions (Mendell 2005). As such, domestic conflicts can be solved through such methods as arbitration to confer legal rights on a company. However, international issues can be solved through negotiation methods aimed at arriving at consensual agreements such as arbitration.