International Business Transaction and the Law 1

INTERNATIONAL BUSINESS TRANSACTION AND THE LAW

By Name

Class (Course)

Instructor (Tutor)

Institution

The City and State

The Date
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International Business Transaction and the Law

Question 1

The conflicts involved in this case can be solved through the process of arbitration. Foton

Ltd is involved in a case which is difficult to solve using the litigation process due to various

reasons. Since there is a possibility of a dispute occurring between the company and the seller,

the involvement of Vietnamese law and Australian Law would result in further complications.

Both laws are different in terms of involving the contract of sale. Likewise, the conflict can be

difficult since Japanese law must be involved as a result of the bill of lading. Therefore,

arbitration is the most effective process which can be employed in this case to ensure that the

conflict is resolved within a short period of time. Factors such as the enforcement of judgment

via an overseas court can also be avoided to protect the relationship between the three companies

involved.

International arbitration is an efficient mechanism which contributes to the resolution of

conflict without the involvement of courts. In this case, the three parties must be involved in the

conflict resolution process to identify the cause of the issue. These include Foton Ltd, Mitro Co,

and master of Expressway. An effective arbitration institution must be involved in this case to

ensure that the interests of all parties are considered (Malbon and Bishop 2014). By the end of

the arbitration process, Foton Ltd should be provided with an option of receiving its products

from the seller. The arbitration institution must, therefore, be capable of identifying the cause of

the conflict and how to come up with an effective solution.

Question 2

In this case, Aussie Clothes must participate in the court hearing since failure to oblige

with the laws may result in significant losses. The company can, therefore, employ the litigation
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process to solve the dispute which exists in this case. Aussie Clothes must improve their

relationship with Jump Clothing before the court hearing to ensure that the ruling made is

favorable to them. At the end of the conflict, Aussie Clothes must acknowledge the fact that it

has to make part of the payments to Jump Clothing since the company failed to participate in the

Hong Kong proceedings. Alternatively, Aussie Clothes can apply the Australian law to enforce a

judgment which can provide it with a favorable ruling. Providing the reasons of poor quality can

enhance the judgment made by Australian law (Malbon and Bishop 2014). As a result, Aussie

Clothes can avoid incurring significant losses.

Question 3

In this case, the Australian courts can refuse to consider the case provided by the

Kamarian company especially if it acts without jurisdiction. However, if the Kamarian

government provides evidence that my company was involved in cases of back taxes in a foreign

country, the Australian courts would be willing to register judgment if the Kamarian government

tries to enforce it in this country. The Australian law requires a foreign company or government

to provide evidence concerning a case (Malbon and Bishop 2014). Lack of the involvement of

cases such as fraud within the enforcement motivates the Australian courts to register judgment.

Some of the major principles involved to decide if the forum is not convenient to include the

consideration of the occurrence of fraud (Schultz and Mitchenson 2016, p. 345). Australian law

must also consider whether the foreign government acted without jurisdiction.

In the case where all disputes will be submitted to the courts of Afghanistan, the

Australian courts decide to handle the case since the overseas court is not superior. The

Australian courts would also be willing to handle the case in the second scenario where all

disputes will be submitted to the courts of Kamaria. However, these courts cannot enforce the
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judgement in the third case where the disputes will be submitted to the courts of India due to the

superiority of the courts and the extended period during which the case will be heard.
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References

Malbon, J. and Bishop, B. (2014). Australian export: a guide to law and practice, Port

Melbourne, Victoria, Australia: Cambridge University Press.

Schultz, T., & Mitchenson, J. (2016). Navigating sovereignty and transnational commercial law:

the use of comity by Australian courts. Journal of Private International Law, 12(2), 344-

378.