Mitsubishi Case
This is an excerpt from the paper...
While international trade provides opportunities for companies that are otherwise unavailable, it also brings with it additional problems when there are disputes between parties. Contracts, which can be cumbersome enough for domestic situations, can be awkward when parties from different countries are involved. Because of this, careful consideration must be given to key aspects of international contracts at the time they are drawn up. In the case of Mitsubishi Motors Corporation v. Soler Chrysler Plymouth, a Swiss subsidiary of an American company found itself in a dispute with a Japanese manufacturer over sales in Puerto Rico. At issue was whether a clause in the contract between the two parties which required arbitration was appropriate to resolve disputes between the contracting parties. The underlying problem is that of determining what is the best alternative for conflict resolution when parties from various countries are involved. In this case, arbitration was written into the contract, but Soler later decided that this was not the optimal solution alternative for its interests.Justification for Problem Definition The problem of determining what is the best alternative for resolving international disputes is one that managers in global organizations face regardless of what country they are located in. In fact, the issue of how disputes among domestic contracting parties are to be resolved is also a key aspect of many contracts that involve
. . .
tion of Alternatives
Each of the various methods of dispute resolution have their advantages and disadvantages, and there are various other factors which need to be taken into account when evaluating which alternative is best for a particular company. A large multinational corporation may have hundreds of contracts with companies around the world, and use different conflict resolution methods depending on the companies involved and their location.
Litigation is among the most costly alternatives, and may not be appropriate in all situations. Because litigation involves courts, it must be based on legal questions, including breach of contract, which may not be the situation in all cases. In addition, there is the question of jurisdiction and where cases will actually be tried and heard. Depending on the nations involved and the legal code which governs the contract, one company may find itself at a severe disadvantage if the litigation takes place in a different country. Because of this, litigation is often seen as a last resort for conflict resolution.
Arbitration has the advantage of not requiring legal questions to be settled, and also of using a third party, presumably objective with regard to the question at hand, to s
. . .
Some common words found in the essay are:
Justification Definition, Evaluation Alternatives, Follow-Up Companies, Arbitration Association, Recommendation Companies, Courses Action, Puerto Rico, , Mitsubishi Soler, Association Soler, conflict resolution, third party, contracting parties, commercial arbitration association, japan commercial, commercial arbitration, arbitration association, mediation arbitration, international law, dispute resolution, written contract, japan commercial arbitration, arbitration third party, regulations japan commercial,
Approximate Word count = 1458
Approximate Pages = 6 (250 words per page)
More Essays on Mitsubishi Case
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
