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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