Problem Question 30 Marks
Problem-Question Scenario:
Assume SMART Electronics (SE), a US based company, manufactures an electronic device HT with a distinctive brand and provides commercial advice on the construction of equipment used in dairy farming.SE decided to expand its businessas itgained significant transborder reputation but it did not have previous experience in doing business abroad. SE entered into two business contracts in June 2014: a ‘license deed’ with SOMA, a Sydney based Australian Company and; a joint venture with NOVA, an Indian company, engaged in dairy farming.
SE while granting the power to manufacture and use HT for a period of two years accepted an undertaking from SOMA that ‘SE enters into a licence deed and not a franchise relationship and receives a general relieffrom liability.’ The terms and conditions of the deed also required SOMA to ‘comply with the quality control condition and specific system of marketing plan approved by SE based on its financial and operational support.’ In December 2014, just after six months, SE realised that it could not afford any operational support due to its huge financial loss incurred from several businesses with Elite, a UK based company, of which SOMA was not informed. Consequently, SE terminated the agreement. SOMA wishes to go for a legal battle. SE argued, inter alia, that it maintained an excellent record of legal compliance at home and did not intend to breach; it was not aware of the foreign law, that is, Australian relevant law and its recent amendments.
The agreement with NOVA required SE to provide advice on the construction and development of all dairy farms of NOVA in India. The Indian government approved this giant project and promised future tax breaks if certain conditions were met such as ‘employing 65 percent local workers, exporting at least 75 percent of the farmed products and using 50 percent Indian-made content in the construction of the farms.’ In exchange, SE was given 35 percent stake in Nova. Recent changes in the government in India in November 2014, however, led to the expropriation of all NOVA’s farms which were in the advanced stage of construction. Public interest was cited as the reason for the intended expropriation. SE is planning to go for a legal battle as it hadalready invested US$50 million in this project.
Frustrated and in despair, SE would like to proceed now with other modes of operating business overseassuch as agency and distributorship but is worried about the start-up and operating cost and risk factors involved in those modes.
Answer the following: (10+ 7.5+ 7.5+5)
1. What are possible legal issues raised in the above scenario from the perspective of International Business Transactions? Identify and examine briefly statutory and judicial authorities in Australia that could be relevant to adequately dealing with those issues. (Marks 10)
2. Advise SOMA and SE as to:
2.1. Whether SE has breached any statutory or common law duty in dealing with the deed with SOMA. What particular legal provisions do you think SOMA should invoke to successfully challenge the SE’s decision (termination of the agreement)? What are other issues that may also arise in determining the ‘nature’ of the deed and the obligations of SE towards SOMA? Support your argument by relying on relevant laws and judicial decisions. (Marks 7.5)
2.2. Whether SE should proceed on to a legal battle against NOVA. If it should, what specific legal issues shouldSE endorse in its claims and how should it make effective use of international standards to achieve a favourable remedy? How strong is the public interest claim of the Indian government? (Marks 7.5)
3. What policy and legal consideration should be taken into account in expanding business abroad through agency and distributorship? Would you advise SE to negotiate separate agreements with those foreign companies for manufacturing and distributing HT? Why or why not? (5 Marks)
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.
It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>
