Addressing International Legal and Ethical Issues Simulation
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Addressing International Legal and Ethical Issues Simulation
Disagreements are very common in international trade. Whenever a company enters into a contract with an international entity, it must ensure that the contract is legally enforceable in order to protect the companys interest.
This paper deals with such international problems faced by a hypothetical company, CadMex Pharma based in Tampa Florida, which teams-up with another hypothetical company, Gentura based in a small developing country, Candore. A series of events takes place between CadMex Pharma, Gentura and the country of Candore, which has impact on the business operations of CadMex Pharma. The contract that these two companies get into is that CadMex will license their technology and provide expertise. In return, Gentura will give CadMex the global marketing rights to the anti-diabetic agent that Gentura has developed.
Analysis of selecting the proper forum and venue for dispute resolution
Choice of Law – Candorean regulations for technology import contracts (CRTIC).
The advantage of Candorean regulations (CTRIC) over Contracts for international sale of goods (CISG) is that CRTIC is enforceable as it is a local law. Additionally, CGIS may not provide desired protection for intellectual property in an international business transaction.
Forum Selection – International arbitration
Its is beneficial for CadMex to chose International Arbitration over Candorean courts OR US courts for the reasons stated here. Gentura may qualify for Foreign Sovereign Immunities Act, which implies that US Courts may not have any jurisdiction over Gentura. On the other hand, there is risk involved in going with Candorean courts, as there is a possibility of government interference with the legal system. International arbitration is faster, less expensive, less formal, and more private than litigation.
Explain why Gentura would be in breach of its contract with CadMex Pharma
CadMex has issued license to Gentura to develop medical agents or drugs using a technique that CadMex has developed which reduces the time required to develop the medical agents or drugs. In return, of this know-how, Gentura has provided worldwide marketing rights to CadMex for the drugs that are developed using CadMexs technology. One of the payment clauses of the contract says, “Gentura will pay the licensor, CadMex Pharma, a running royalty equal to 7.5% of Net Sales of the Licensed Product sold by the licensee protected by patent rights.” If Gentura subsidizes the production of VioBrax, the payment terms of the contract between Gentura and CadMex will be violated.
What remedies might be available for such breach?
In event of a contract breach, CadMex has the following options
Take Legal Action
Taking legal action can affect future relations with Gentura and Candore. At the same time, not taking any action and letting Gentura