conflict of laws in IB

Thèmes abordés

-conflict of laws, problems in international business disputes, negociation, mediation, arbitration, trials, court

Résumé du document

, it is important while doing business to set things clearly and that is why the contract need to be very clear and provide legal information to make sure that in any case of possible dispute the rules are clear. In any case of conflict, I truly believe, that mediation and negotiations are the best alternatives to solve business disputes. To add more structure, you can go to arbitration to have a neutral view, this kind of judge will try to find a compromise. Finally, the one I recommend the less is to go to court, because it is very long and very costly and this expose your problem to the public.

Extraits

[...] The arbitrator or organization to arbitrate is agreed by both parties and its finality of disputes. To conclude, it is important while doing business to set things clearly and that is why the contract need to be very clear and provide legal information to make sure that in any case of possible dispute the rules are clear. In any case of conflict, I truly believe, that mediation and negotiations are the best alternatives to solve business disputes. To add more structure, you can go to arbitration to have a neutral view, this kind of judge will try to find a compromise. [...]

[...] This did not work as Wahaha involved the Chinese government. Then, Danone decided to sue the Chinese company in front of the World trade organization. However, this process is very long and costly for the company as they have to hire lawyers, and use their precious time to go to court. Indeed, this trial still in process while they started to go to court three years ago and the final decision have not been given yet. The last but not least, which is now more and more used is the arbitrations tribunals. [...]

[...] However, in the case of conflicts of laws during an international business dispute there are several ways of dealing with it. In today's litigious society, for small to medium enterprises (SMEs) even the smallest disputes, whether with competitors or consumers, can be potentially fatal to your business. As an owner, running your business can take up most of your valuable time but you should ensure that you deal with disputesquickly and efficiently. If you don't all your hard work could be in vain. [...]

[...] Also we can distinguish three main legal systems: The continental legal system known as well as civil law or code law is originated from the Roman Empire and its legal system. This system is used in countries such as Germany, France or China for instance. The common law legal is where the judge makes law, case after cases which is applied in countries such as USA, UK, Singapore or Australia. Finally, the Islamic legal System which is a combination of code and case law is used in about 27 countries across the world. Those differences have lead, lead and will continue to lead to conflict of laws. [...]

[...] So, those tribunals put another eye on the situation, and give their judgment thanks to dispute settlement panel and procedures. Those tribunals appear to used mainly by big corporations and multinational companies while resolving business dispute. For instance, Danone, a French company that produced diary product worldwide decided to enter the Chinese market few years ago. The best solution according to them was to settle a joint venture with Wahaha a Chinese brand. After analyzing their financial performances, Danone realized that Wahaha was producing a non negligible amount of products and sell them without telling to Danone. [...]