While resolving legal disputes in international transactions, several issues could be put into consideration. To begin with, it is very important to understand that both ethical and legal issues are very important in the conduct of business globally. Ethical and legal issues enable companies to carry business within the accepted and expected limits (Brooks, 2013). Further, these issues could be taken into consideration especially during tough moments while undertaking business transactions between one-two company. These issues include local laws, culture, politics, and legislation. They should be taken into account during all international transactions because they can affect global transactions either directly or indirectly.
Companies could undertake business transactions with other companies located in foreign or different countries. In such a scenario, they should implement a contractual agreement to avoid eventualities and make each other liable in case of breach of contract. The main purpose of the contract is to prevent the interest of both companies (Brooks, 2013). Given this, the agreement must be stated in a manner that creates room for resolving any dispute that might occur. Additionally, the law to be enforced must be chosen in a manner that could allow its applicability and implementation. Further, the international contract regarding the sale of goods needs to be taken into consideration because most transactions entail the exchange of goods and services. Additionally, it is equally important for companies to decide between the international courts and local ones in case of disputes resolutions (Brooks, 2013). While selecting the judgment to apply, it could be important to consider the duration to be taken by each court while resolving the case because companies may prefer the cases to be dealt with in a fast manner so as to resume their normal undertakings.
There may be several factors that might work against CadMEx in case they have been granted sublicensing. To begin with, the companies involved in sublicensing must meet the standards required as well as the required quality for the production of the medicine (Evangelista,2008). Additionally, ViroBlax which was another medicine in the market could have become more popular than Carmex. Further, this could encourage piracy which in its turn could force the government to give Viroblax a license. What is more, cadmex could lose considerable cash as a result of customers preferring the new medicine.
Normally, customs and laws that are used locally could sometimes fail to concur with the ones applied internationally (Evangelista, 2008). In such scenarios, it could be advisable for the two companies to have a dialogue in order to determine which laws could be simpler to amend. Additionally, it could be simpler for the adjustment of the local laws to make them fit the international ones, being founded on the fact that the local business has a great interest in the businesses operating abroad due to the great profit they can get.
While solving disputes between two companies that are located in two different nations, it is important to first consider the legal issues put in place between the two nations (Melvin, 2011). The legal issues could be taken into consideration while selecting the best strategy to apply. The companies could decide on the legal method to be used based on its complexity. Domestic issues might be resolved in local courts while international issues could be resolved through arbitration process (Melvin, 2011). Additionally, it is always advisable to use an arbitration method in order to protect the interest and image of the two companies.
References
Brooks, E. C. (2013). Legal and ethical issues for the IBCLC. Burlington: Jones & Bartlett Learning.
Evangelista, M. (2008). Law, ethics, and the war on terror. Cambridge: Polity.
Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York: McGraw.