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The first question: In a second case, a Colossal subsidiary in Bartan, an Asian country, wants the company to enter into a sales contract with a subsidiary there, using the UN Convention on Contracts for the International Sale of Goods (CISG) as the controlling law. The VP needs to know the ramifications of this option and decide whether it is a good idea. 

Second question: The parent company, Colossal Corporation, has been sued in the country of Notso in South America. The lawsuit claims millions of dollars in damages due to supposed pollution at a mine that Colossal owned there. 

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Answer 1

As per the United Nations convention highlights the contracts law defined under the international sales of goods (McParland, 2015). It is an effective method which helps in consistently promoting international trade. It also defines and accesses a major importance of the commercial law within the international laws. In the case study, as the company has applied for payments in the case of the supplier and gets initiated the moment delivery of goods starts within the United States no undue liability. As VP thinks leaving the country would keep the law at bay and would not be able to control, is wrong on his part. Leaving the country and for that thinking that going. As per the UN CISG rules unless expressed in terms of a contract it is important to incorporate into (and supplant) needs to have an applicable domestic law(s). This helps in a smooth exchange of goods in between the Contracting States.

For any country, it is important to that set their own legal rules which allows an exchange of activities which happens across borders (Llewellyn, 2015). But for the foreign companies, it is also important to abide by the foreign laws and at the same time maintaining balance in the country where they are doing business. The international companies having a subsidiary operating in different countries are as such not affected or conflicted by the domestic laws while doing operations within the home country. During such operations, the host country often does not provide laws of the extraterritorial application. Hence while the companies do operations in different countries, the U.S for example not be in a position to regulate activities with respect to the US-owned companies by which they are operating in foreign countries.

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Answer 2

Even if the company leaves to the other country, since the company has been sued in the Notso in South America, it is important to abide by the protocols laid down by the host country. The company needs to abide by it and should adhere to it. The actions of leaving the country by the VP, would not allow the company to forgo the loss. The company needs to pay back in such cases. It is mandatory to follow all the laws and compliances as laid down by the host country. if the company does not abide by and is running away from the country, the country can take the matter to the UN International court where the matter would be discussed. If the company has conducted fraud or some penalty has been imposed, it is important for the parent company to pay it in full amounts (Fuller, 2015). This would help the company and the host country to abide by the applied laws and regulations.

As a recommendation, the VP should appoint someone to attend the case and also abide by the court rulings. If the penalty has been imposed or fine, then the parent company is supposed to pay. The rule also mentions if the subsidiary company is under penalty and the subsidiary company has already shut down its operation, hence during such time parent company are obliged to pay.

The international court is a court where such cases appear.  Under this, the court considers all the contractual laws and the application of it (Svantesson, 2016). In case of violation, it results in the heavy penalties, fines and can even lead to a bad reputation from the future point of view. To abide by the rules and regulation, it is mandatory to abide by the laws and compliance imposed by the host country.

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