As purchasing professionals are more involved in international business supply chain activities , what are the three most important legal issues that they may face?
The first legal issue is the
different commercial laws governing the trade between the parties
and lack of understanding of the difference in laws, will create
issues for the company. So, it is the responsibility of the
purchase professionals to understand the intricacies of the laws
and takes initiatives in a proactive manner.
The second legal issue is the role of agent and agency in a contractual obligation. It is an issue as it is an agent that performs responsibilities on behalf of the owners or principal. It creates an apparent authority if the principal is not involved. On this basis, the liability of the agent is fixed. So, it has the potential to create legal problems for the purchase professionals.
The third legal issue is prevalence of different payment mechanism such as letter of credit, bank guarantees and preferences offered to buyers or seller in different nations. The lack of understanding of these aspects of the laws, will create legal issues on the part of purchase professionals.
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