Addressing International Legal and Ethical Issues Simulation
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Addressing International Legal and Ethical Issues Simulation
Developing and managing a business internationally produces many challenges. Businesses will constantly face various legal and ethical issues, in which a decision must be made. The decision may be right or wrong, but that is a decision the business must live with. American businesses that decide to enter into international business transactions, such as product licensing to a foreign company or the transfer of technology, need to define contract terms. A variety of factors are involved such as political issues, international laws, and cultural differences. All of these factors influence the success or failure of the business ventures in international markets. Researching and understanding local laws is essential when establishing a business in a foreign country. Team E has had experiences in such areas and has also read news articles that are very similar to these situations. (Rose Randazzo)
In the simulation addressing CadMex Pharma and Gentura, speaks about international legal and ethical issues. These two companies have become successful partners, and both companies have cross-licensing agreements for several other drugs and techniques. CadMex gave Gentura the rights to market ViroBlax, which is used in the treatment of severe viral infections. The city of Candore is one of the cities that can use the ViroBlax. With all of the cross-licensing agreements, CadMex and Gentura have included the CRTIC in the choice-of-law clause and the international arbitration as a forum for contract disputes (University of Phoenix, 2008). It has also been a year of political turmoil for Candore, and the city is in the midst of a rare viral epidemic. ViroBlax is the main drug used in the treatment. Gentura is planning to subsidize ViroBlax, not by choice. The new government is pressuring Gentura to produce ViroBlax, but starting production would violate the terms of the contract between CadMex and Gentura. Although, Gentura promised the Candorean government to make the ViroBlax available at a subsidized price, the contract is being modified. This is a breach of contract and CadMex can suffer financially. (Rose Randazzo)
In this situation, an option would be to take no legal action, but claim compensation from Gentura. In this case, claiming compensation from Gentura could preserve business relationships with Gentura in the future. In addition, opting for a financial settlement will enable CadMex to benefit from any losses that incurred due to the ViroBlax subsidy. Along with the continuing spread of the viral infection, Gendura is unable to meet the demand for the drug in the specified timelines. The Candorean government is now faced with a national emergency, and has suspended CadMexs patent on ViroBlax. The Candorean government has also decided to provide compulsory licenses for domestic manufacture of generic versions of ViroBlax (University of Phoenix, 2008). The decision that was made by the Candorean government could threaten CadMexs drug patent. The decision CadMex has to make now is to possibly take legal action against the Candorean government, but risk losing potential business opportunities in the future. Credibility and other issues might arise in future endeavors with the country. In response, to the Candorean government, CadMex will negotiate for sublicensing local companies for production of ViroBlax. By sublicensing with local pharmaceutical companies, CadMex can utilize their drug patent and make up for any losses that might occur. (Rose Randazzo)
Now things seem to be looking up for CadMex and Genturas alliance. “The two companies now have established a world-class research center, GeneMax, in Candore” (University of Phoenix, 2008). A situation, however, has arisen that could hurt the creditability of the company. GeneMax suspended five employees for refusing to shave for a week. The employees did not shave due to religious purposes. In the University of Phoenix simulation (2008), According to the followers of Aransim, a major religion, it is considered disrespectful to shave during a particular week in July. The company policy at GeneMax is to comply with the Institute of American Research regulations, which means being clean-shaven and wearing sterilized suites. The suspended employees now are threatening to sue, due to religious discrimination. GeneMax now needs to consider the legal rights and ethical duties that can be potential conflicts. GeneMax does have a written company policy stating what is expected of all employees, however, they need to consider that religious discrimination can be used against the company. The short-term solution would be to revoke the suspension. This would not only take back the lawsuit, but also keep them in good standing with the public. However, this company policy was put into place for safety reasons. The company must investigate this further and come up with a good long-term solution or they may be subject to facing a similar circumstance. The long-term solution should be to provide reasonable accommodation for religious practices. An example of an accommodation can be to allow the employee unpaid time off. GeneMax may consider working with an agency to fill in the staff during these times. This will hopefully prevent time lost. (Briana Romero)
Defining contract terms can be diverse when taking it internationally. The simulation spoke of two countries. Ideally if both countries were both signatories to the (CISG) Contracts for the International Sale of Good the country would have to be with a WTO. The choice of law would be CISG, since it not we have to use (CRTIC). Candorean Regulations for Technology Import Contracts (CRTIC) with nine provisions specify basic contract issues, contract term, registration procedures, and technology equipment transfers. Candore courts were restructured when President Gwendoz came to power; it is not independent of the government. Some cases receive a fair hearing, and the courts rulings are held as final. Political interference in court ruling some time gives a different result. (Eddie Atwood)
CadMex Pharma not only faces cultural issues but also faces legal and ethical issues. In the University of Phoenix simulation (2008), CadMex had to evaluate different options in order avoid the suspension of the ViroBlax patent. The population in Candore faced a national health emergency and Gentura was unable to meet the demand for the drug in the required timelines. The Caondorean government suspended CadMexs patent on ViroBlax and decided to provide compulsory licenses for domestic manufacture of generic version of ViroBlax. (Geovanna Moreno)
There are several factors that were taken into consideration in the decision making process. Some of the factors include the loss of royalties and the threat