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Legal Aspects of Business Decisions

Legal Aspects of Business Decisions
Project description
Read each assessment listed below. Your response should address each assessment separately in order to move the conversation forward. Ensure the mastery of the concept as well as critical thinking. In your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position, also please answer the two questions listed below separately.
Assessment One
Legislation and Business Practice
With regards to adherence to legalities of businesses within the same industry that manufacture and distribute similar products/services to the marketplace, State regulations and political variances on business components such as subsidies and tax incentives will fluctuate from State to State, and there are determining factors such as businesses members with the WTO, favoring of state to state legislation, as well as individual judgments within these parameters that might be biased or unbiased towards business or group entities.
Business A is receiving subsidies that include lower taxes, tech assistance, and low interest financing in State A. Business A starts to distribute their product in State B where business B manufactures and distributes a similar product, business B starts to have a decrease within the marketplace shares and requests that State B impose duties on business A to counterbalance the subsidies that State A provides to business A. After an investigation, Customs Service that determines and is responsible for imposing such duties refuses to impose any duties on business A. Business B sends an appeal to a court.
The appeals process for this type of claim has variables determined through the courts attention to rules in place through WTO legislation with regards to counterbalancing subsidies, and duties that might cause internal loss to a State or Business, the Customs Service accuracy and approach to the investigation of the case, as well as the GATT 1994, and if this applies to this case such as if the application of subsidies is detrimental to an industry of another member state, nullify benefits, or threaten the members of another member state. With this the action of business B to appeals court is appropriate ( August, 2012). These factors will determine if the courts overrule the decisions of the Customs Service.
When businesses or individuals within a business utilize business procedures from the perspective of competition, this might drive the business towards a better quality product/service and enhanced communications with individuals that purchase the products/services, the workers as well as the communities that are locally affected through the business practices of a business, the competition perspective might be detrimental to a business through decreased quality to appease mediocrity, this mediocrity might affect the community and workers of the business, this might impact the global community as well as standards lowering instead of reaching towards a better quality product/service to bring to the planet. A collaboration perspective regardless if the businesses are within similar industries, the ability to learn from each other enables each business to become more efficient and effective at contributing valuable and meaningful products/services that bring abundance and prosperity to individuals lives that establish the communities throughout the world. When groups such as social, political, or government agencies attempt to overstep their authority to manipulate and repress at someone else s expense, this is more than legally incorrect, there is a moral and ethical component that is being turned away from, this shortsightedness on the part of those who display decisions and actions of unconsciousness are only hindering their selves as concerns the long road. With all the rules and regulations, ultimately each individual is responsible for their decisions, choices, and actions.
Thank You,
Jerry Jay Hanson
Expando Co- located in State A and receives a wide variety of subsidies form State a Government.
Expando Co. – Receives subsidies from state A Government include (Tax breaks, low interest financing and Technical assistance) that is offered to all domestic enterprises within State a Governmental territory.
Expando Co. – manufactures wristwatch bands and just started selling them in State B.
Flexco Co. – located in State B manufactures similar watchbands and has begun to lose some of its market share to Expando which is in State A.
? State A and State B are Both WTO Members.
Flexco Co. located in State B would like State B to impose a countervailing duty to offset the subsidies received by Expando from State A, and Flexco has asked the State B Customs Service (which is responsible for imposing such duties) to do so.
? After an investigation was performed by the Customs Service- the Custom Service Refused to impose any duties. Flexco Co. has appealed to a court as a result.
It is the opinion of this writer that the court should not overrule the decision of the Custom Service. The reasoning for not overruling the decision of the custom service is simple. It is the responsibility of the customs service to impose the duties. Perhaps in a case where if Expando Company had been in violation of an international treaty or contractual obligations then the courts would correct in the overruling if the decision of the Customs Service was not agreement with international policy. This writer feels there should be no overruling by the courts because Flexco Co. lost some of its market share.
The “Doctrine of Incorporation” is received in most countries in accordance with international customary law. Which means basically that customary international law is adopted to the extent that it is not inconsistent with previous municipal legislation. One main problem with two companies operating in the same state is “Negative Servitudes”, which is when one state is prevented from doing activities within its state that may affect another state, or other companies located within the same state. Many companies also operating within the same state often have to deal with Air & Water Pollution. Water pollution in these and most other cases are defined as any detrimental change to the original composition, content and/or water quality within a certain state. The implications and damages accrued from these types of problems have long-term and drastic effects on surrounding communities as well as the employee stability in both organizations within one state,
Mayer, D. Bixby, M.(2012),” International Business Law: Text, Cases, and Readings”
Retrieved (2014, 01 17) , “Pearson Custom publishing, 6th Edition, Pages 720
From: http://wow.coursesmart.com/9781256831624

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