Legal and ethical issues in professional practice

¶ … Anaylsis

Gentura has manufactured an important drug called Propez. CAD Mex Pharma being a huge name in the U.S. has found an inexpensive way to produce some of the medical agents used in Propez. CAD Mex Pharma would want to ensure protection of its interests when the technology is transferred. For this reason, the contract needs to contain clear and binding clauses on resolution dispute. In case a dispute arises, both parties should know which laws would be applicable and how they would approach to resolve the matter. The problem with Candore is that it is not a signatory of any major trade organization, which makes it impossible to the U.S. To enforce any such international laws on the country or any firms operating within.

How can Gentura be involved in breach of contract:

The first important to understand here is that when technology is transferred from one country to another, it is not meant to be resold by the recipient. While the Candorian law makes it clear that the recipient would be allowed to use the technology in any manner it wants, it also uses the word confidentiality. This means that the country recognizes the need for protection of confidential material. This is one thing we must keep in mind. In case Gentura decides to pass on the technology to some other firm or country, it would be violating the law and also conducting breach of contract.

Remedies for breach:

In order to protect the interests of Cad Mex, the firm must have a legal contract, with clauses pertaining to breach of contract and penalties. The best thing before entering into a contract is to make sure it is developed to make the transaction breach-proof. Both parties should understand what would happen in case of breach.

Cad Mex needs to use Candorian local laws for transfer of technology. This is because U.S. laws would not be accepted by a foreign state under dictatorship. The Candorian laws are good enough if used properly. The term confidentially must be fully explained and explored. Gentura must understand what Cad Mex understands by the term confidentiality. Since Gentura is operating for some time, it would already be familiar with local laws and will not be able to escape with lost in translation excuse. For example, while the U.S. laws may be strict, they may not be fully comprehensible to a business in a foreign country. For this these, when it comes to choice of law, Cad Mex must make good and proper use of Candorian regulations for technology important contracts.

The contract must also explain where the case would be settled. The best choice is of course international arbitration because it is a neutral ground that is likely to provide speedy and inexpensive settlement. However the problem is that Candore has not ratified any international trade convention, which makes it difficult for the U.S. To enforce the settlement on it. For this reason, it is important that the dispute be settled in a U.S. court. While the Candorian justice system could have been an easy choice, the problem is that in that country judiciary is not independent of the government and there is a possibility that government would want to influence the decision. Gentura is their own local business and they would not want to impose penalties on it for some foreign firms. In order to remove this problem, it is best to use the U.S. courts for dispute settlement. In the U.S., the judiciary is independent and fair trial is not doubted. For this reason, Cad Mex must ask Gentura to agree to this term. While the U.S. courts may not allow cases against foreign firms operating in their own state, it does allow cases of commercial nature. This is a commercial case since technology was transferred from the U.S. To Candore. The U.S. courts will allow this dispute and resolution of it might be less of a hassle.