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Legal and Ethical Issues Simulation Summary

Steven Turlington
Contemporary Business Law/LAW!1
"e#ruary 1$% !&1
'aya Simmons()ogers
Legal and Ethical Issues Simulation Summary !
Legal and Ethical Issues Simulation Summary
When dealing with legal disputes in other countries an organi*ation must #e +ully aware o+
the international laws as well as any local laws that govern these actions, -ne must #e cogni*ant
o+ any treaties with the +oreign nation% customary laws% or .udicial decisions in re+erence to comity
that may a++ect the dispute /'elvin% !&110, Blend these international laws with the re1uirement to
act ethically and responsi#ly +or humanity and any international legal disputes have the potential to
#e costly,
-ne o+ the more practical concerns when dealing with +oreign #usiness partner legal
actions is i+ common international laws as descri#ed #y the 2nited 3ations /2,3,0 is #inding in the
+oreign country, I+ the +oreign country stands alone +rom the 2,3, there may #e di++iculty in
coming to a proper legal agreement, Another important practical consideration is what type o+
legal action is necessary, Legal proceedings are costly and time consuming, I+ it is possi#le to
come to a resolution through mediation and negotiations this is the #est solution, The possi#ility
o+ +urther #usiness dealings in the +oreign country is important and any possi#ility o+ saving this
#usiness relationship may outweigh a +inancially +easi#le resolution,
When granting su#licensing agreements on a patent it places a company in a role o+
responsi#ility +or other #usinesses actions, By doing this% the company agrees to operate a
manu+acturing #usiness within the con+ines o+ the +oreign country4s employment laws% which may
operate with di++erent rules than that o+ the 2nited States, This poses pro#lems in managing
employees and production, The su#licensing also creates a loss o+ revenue #ecause o+ +oregoing
the patent,
The customs and laws in which an organi*ation is per+orming #usiness prevail over the
organi*ations homeland laws, International law and local laws govern #usiness operations in
+oreign nations and are en+orcea#le, -+ course i+ the laws are ethically inappropriate one must
Legal and Ethical Issues Simulation Summary 5
consider this prior to going into #usiness in this country,
Laws that govern #ehavior in the 2nited States #ind 2nited States domestic legal disputes,
When per+orming #usiness in the 2nited States one can% with an amount o+ certainty% hold
con+idence that 2nited States Constitutional laws will prevail, 6owever% when dealing with
+oreign countries on +oreign soil legal disputes are su#.ect to the +oreign domestic laws, "oreign
and international laws prevail in these relationships so one must conduct #usiness with this in
mind,
Legal and Ethical Issues Simulation Summary
)e+erences
'elvin% S, 7, /!&110, The legal environment of business: A managerial approach: Theory to
practice. 3ew 8or9% 38: 'c;raw(6ill/Irwin,