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    Legal risks to ABC Corporation

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    Deliverable Length: 1000-1250 words

    Details: Completion of the electronics plant in South America has proceeded ahead of schedule. In an effort to move the project along, local government agreed to partner with ABC Corporation in the construction and operation of the plant for the people of that region. Unfortunately, a local political faction opposed to the government has taken issue with the government's participation in the project and taken control of the plant by force, wounding several personnel, natives, and company engineering personnel in the process. In their effort to retake the facility, government troops had to use massive force, which resulted in the death of several corporate employees, destruction of major portions of the plant, and significant damage to the surrounding neighborhood and village. The villagers attempt to bring an action against the local government and your company in the International Court of Justice (ICJ) and the International Criminal Court.

    The ICJ and the International Criminal Court are the preeminent international legal organizations.

    Discuss the history of the two organizations.
    Describe and examine how the courts exercise jurisdiction.
    Discuss the ongoing dispute between the United States and the international community about acceptance of the criminal court.


    ABC Corporation has grown into a successful multinational corporation with gross revenues of $35 billion in the last fiscal year. ABC has operating facilities in the European Union (EU), the United States, People's Republic of China (People's Republic), Asia, South America, and Africa. The company has experienced explosive growth over the last 3 years and has grown from a regional firm to a multinational conglomerate with many international projects currently under way. ABC is planning to construct additional specialty chemical and electronics part production facilities in offshore locations in the near future.

    The original founders of the corporation have become the board of directors and primary shareholders for this corporation and have worked diligently to create a successful mix of products for the corporation including electronics, specialty chemicals, and Internet services in the United States, Asia, People's Republic of China, and Africa. Even though ABC has grown in complexity, the corporation now has a competent and capable corporate legal in-house counsel and management team in place to manage day-to-day operations although the board has insisted on guiding every facet of the business. The board members have taken this hands-on approach to the corporation because they built it.

    Over the last several months, there have been concerns from the management team and in-house counsel about the board's excessive involvement in international negotiations. In an effort to quiet these concerns, the board has engaged you, a recognized expert in the field of international operations and laws, to act as its personal consultant on all projects the board members have undertaken globally. Your job is to advise the board members through memoranda and discussion about the legal risks and consequences they face in the various projects currently ongoing for ABC Corporation.

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    Solution Preview

    The response addresses the queries posted in 1224 words with references.
    //The given discussion is in the form of a 'Memorandum'. This is about ABC Corporation. Prior to discuss the whole process; it is better to understand the background and concept of the Company. In addition to this, the intro of international court of justice is also included in the same initial discussion.//


    Date: October 26, 2007

    To: ABC Corporation's board members

    From: Consultant

    Subject: Legal risks regarding various international projects

    ABC Corporation, a successful multinational corporation, wants to construct additional specialty chemical and electronics part production facilities in offshore locations in the near future. The main consideration for the corporation should be protection of intellectual property rights and tax policy followed by it.

    International Court of Justice

    It was established in 1945. The court settles a wide range of judicial activities. Among developing countries, there has been an increased willingness to use the court. The main functions of the court are:

    ? To resolve legal disputes submitted to it by its member states.

    ? To provide advisory view or judgment on legal questions submitted to it by agencies, duly authorized international organs. (International court of Justice, 2007)

    In 1986, the United States withdrew from compulsory jurisdiction and admits the court's jurisdiction only on a case-to-case basis. It is constituted of 15 judge elected to nine year terms.


    Two types of cases are considered as the issue of jurisdiction: contentious issues and advisory opinions. Four bases are defined by Article 36 according to them, the court provides jurisdiction.

    1. Based on explicit consent.

    2. Matters related to treaties and conventions in force.

    3. By accepting the Court's jurisdiction, build optional clause declarations.

    4. On the basis of declarations made under the Permanent Court of International Justice's statute.

    5. Along with this the court, also provides advisory opinion to the agencies in deciding complex legal issues that ...

    Solution Summary

    The response addresses the queries posted in 1224 words with references.