November 24, 2014
International Legal and Ethical Issues
International law has traditionally been defined in very broad terms and not limited simply to rules that are applied to settle disputes in court. Rather, international law is influenced by a combination of law, religious tenets, and diplomatic relations between nations. This broad definition makes enforcement of international laws challenging, and adherence to international law is sometimes based on expectations of reciprocal behavior rather than legal sanctions. Most legal sources define modern international law as a body of rules and principles of action binding on countries, international organizations, and individuals in their relations with one another (Melvin 2011). International organizations play a unique role in the development of international law. These organizations are typically structured through use of multinational representation are created and regulated by treaty. The most famous organization is the United Nations (U.N.). The U.N. has made significant achievements in harmonizing laws related to the sale of goods between businesses in different countries and other international business transactions. The Convention of Contracts for the International Sale of Goods, which was created by the U.N., is used to set rules for certain business transactions (Melvin 2011).
Issues Involved in Resolving Legal Disputes
The parties to an international dispute are typically corporations or government entities, rather than private individuals, while domestic dispute resolution can involve relatively small claims by individuals (Melvin 2011). Many countries have created a separate legal department to handle disputes with another country. Issues involved in resolving International disputes include a combination of law, religious tenets, and diplomatic relations between nations. International courts also play a role in development and interpretation of international laws, but their power to enforce a ruling on sovereign nations can be tenuous and their jurisdiction may be limited (Melvin 2011). Though every effort must be made to prevent any major disagreements in international transactions, legal disputes may happen when unforeseen events affect the business transactions between companies. The method used to resolve disputes should be outlined in the contract. Both parties must agree on which country’s court system would hear the case or if the parties will use the International Court of justice to settle a dispute. The forum used should also be specified.
Practical Considerations of Legal Action
Before making the decision to take legal action against a foreign business partner, there are important matters to consider. One consideration is the laws governing each country. If the laws conflict, it will complicate matters and make resolution difficult. When there is a conflict of laws between countries, international arbitration should be considered. Arbitration is considered international if the parties to the arbitration are of different nationalities or the subject matter of the dispute involves a state other than the country in which the parties are nationals. There are several bodies that administer arbitration: the International Chamber of Commerce, the International Court of Arbitration in Paris, the London Court of International Arbitration, and the American Arbitration Association. In consideration of the relationship between the two countries, arbitration may be a better alternative when taking legal action against a foreign business. One business filing a lawsuit against a foreign business could possibly create animosity between the two countries. It could also interfere with current or future foreign business relationships.
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