Tut5-coml306 - Nothing to say hahahahahahah PDF

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Nothing to say hahahahahahah...

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School of Accounting & Commercial Law

COML 306 LAW OF INTERNATIONAL BUSINESS Trimester Two 2020 Tutorial 5

Protection of human and labour rights 2 documents which encourage Bs to watch human labour rights (CSR): 1. UN guiding principles; 3 key words; protect, respect and remedies – state responsibility is to protect human rights, within their corp fulfil human rights and fundamental freedoms -

Enterprise need to respect these rights

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has to be effective consequences; reputational consequences (consumers knowing these rights will use their products more than others)

CSR and this document sometimes used in a way to market – not all the time can be odne genuinely NGOs and civil society organisations, lobby’s and groups who will keep an eye on what they do 2. UN global compact -

10 principles but 4 categories a. Human rights b. Labour c. Environment d. Anti-corruption

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This is for big business, they have a huge impact on this stuff

These are not enforceable, other consequences than legal that these corporations may face;

Their reputation, consumer market, lobby groups

QUESTION ONE You are in an intern at the head office of BuildHouse Supplies Ltd (‘BSL’), a major New Zealand retailer of building materials that has a turnover in excess of $200 million. BSL is well known for sourcing cheap supplies from around the world, typically from least developed countries. Hemi Wairua has recently been appointed managing director of BSL. Hemi, who has been working for the last 10 years in the European Union, has concerns about BSL’s business practices, and approaches you for advice. Hemi tells you that, in his experience, human rights have become an increasingly important feature of international business law, and yet the directors of BSL seem to be unaware of these developments. He asks you to draft a memo to the board explaining what business and human rights mean for BSL. Required Draft a memo to the directors of BSL explaining the relevance to BSL of: (a) the United Nations Guiding Principles; and (b) the United Nations Global Compact. Huge corporations; these are what principles are concerned with Sourcing cheap supplies mainly developing countries; how are they going to be manufactured in compliance with worker rights EU concerned with these issues, hemi is very serious Memo: Advising board on how to ensure supplies they are sourcing is being made in compliance with; protect, respect and remedies Also 4 categories from UN but why? Moral obligation, social responsibility, business reputation; will push consumers away e.g. Haier letter, supports things and then will demonstrates each principle per year to UN

their belief in the principles, their intent, appreciation of the importance of the roles

QUESTION TWO Hydrogen Solutions Ltd (Hydrogen) is a New Zealand-based company which designs and manufactures purification filters for water treatment plants. Hydrogen has designed, “HydroMax”, a revolutionary filter which has attracted great interest around the world. The filter has been patented in New Zealand but Hydrogen’s factory does not have the capacity to meet expected demand. Possible options include outsourcing manufacture to Xenon Maquiladora SA (Xenon), a Mexican manufacturing plant. Hydrogen’s directors approach you for advice. Required (a) Identify and briefly explain 3 key actions Hydrogen should take to protect its intellectual property in HydroMax before entering into negotiations with Xenon. What Is IP? Intangible goods Patent the invention it in Mexico Copy right the maintenance and booklet; already comes but further steps to ensure it is there Register the design Trademark “Hydromax” in relevant territories Trade secrets; protection of secrecy of making the product and how business is operated, run, managed – put this in contract with outsourcing company (b) Identify and briefly explain 3 risks Hydrogen would assume by entering into an outsourcing agreement for manufacture with Xenon. Legal system and government corruption; employment law; leases; financial system (interests rates); level of safety and security (violence, human rights, labour rights, health and safety, environmental law), how certain foreign laws are whether they change frequently (tax changing), stability of economy, political unrest, arbitrary government action (c) Identify and briefly explain 3 key provisions Hydrogen should include in its outsourcing agreement with Xenon. Subject matter

Relationship ; JV, partnership Distribution and licensing; territorial restrictions Performance benchmarks; employees performing at a certain level Payment; who you will pay them, they will pay them Currency fluctuation Dispute resolution jurisdiction IP protection; copy right etc Warranties; you want to give them or they want to give you Royalties

Contracts the more detail the less hassle later; most cases on court are because they didn’t include something or were not particular enough...