CUSTOMS AND TRADITIONS



The legal system throughout the Arabian Gulf states is very different from that of the United States or Europe. Codified law based on modern norms is still at early stage. Customs are more important in certain situations than written law. You may have a written agency agreement with an agent, with a clause to terminate the agency under certain conditions; however, it is very difficult to terminate the agreement even though the conditions are satisfied. No matter how you draft your agreements with an agent, US firms usually pay considerable amounts of money to buy their way out. In other words, establishing a justified cause for termination of an agreement before the concerned authorities may be impossible.

Recognizing long-standing traditions is very important in establishing a business relationship, showing kindness, practice humility, seek moderation, sincerity, and honor, shaking hands, hospitality and using gestures and body movements are all proper form of communications. Placing the palm of the right hand on the chest immediately after shaking hands with another man shows respect or thanks. A very slight bow of the head is a sign of respect, biting the right forefinger which has been placed sideways in the mouth may be an expression of regret, touching noses together three times when greeting is a gesture of friendship, and so is kissing two men each others on the cheek.

Using the right hand to eat is a sign of cleanness; avoid stretching legs in front of another person, refrain from putting feet on tables or across someone. Keep yourself out of trouble by not staring at women. Keep dogs and other household pets away from your Arab friends; leaving food on a plate after eating is recommended, it shows a symbol of abundance of food and considered a compliment to the host. Do not ask for alcoholics because the Quran forbids that, unless your host offers that. Avoid criticizing someone, in front of others, it can be harmful. Eating pig meat is forbidden in the Quran and so is the ham sandwich. A handshake is expected at all times. You may hear IN SHA ALLAH “will of God” many times during conversation; this has been a tradition for centuries.

If you are offered to see the Quran, touch it with clean hands. When you visit a mosque, make sure you take off your shoes at the entrance and leave them there before going in; you cannot go into the mosque wearing shorts. Arab traditions require that men and women do not sit together, that women should sit with women only in a gathering.

Pointing a finger at someone may be taken as a threat, do not do that. When waiting at a bus stop or a train station, you will not see people standing in line; they push and shove, and everyone considers himself to be first in line.

Some of these customs and gestures are older than Islam; they may have been in the Middle East during the early civilizations. Such customs have to be respected and might be effective in reaching a deal with your prospective customer.

Do not eat or drink in front of Muslims during the month of Ramadan. It is a fasting month and Friday is the Muslim Holy Day; business is conducted Saturday through Wednesday or Thursday. Never interrupt Muslims at prayer. Religious prayers are performed five times a day.

INTELLECTUAL PROPERTY PROTECTION



We can not assume that a businessman from the Middle East has the same standard of business ethics as we have here in the United States, even lawyers and accountants in that region do not approach an ethical issue the same way we do here. The word “international transactions” sounds good, but it does not have the same meaning that we attach to it and foreign lawyers who focus on statutory interpretation, may place lesser emphasis on factual analyses and issue spotting than do common law trained lawyers.

In the field of intellectual property rights, most of the Middle East countries have not been able to grasp its true meaning. In an entertainment case, my client is trying to locate the producer of a song originated from Lebanon in order to negotiate a payment for using a portion of that song found on a CD he bought in New York, unfortunately, the CD does not carry the producer’s name or any name to contact because CD is being sold apparently without permission. The United Arab Emirates has recently joined the Paris Convention for the Protection of Industrial Property, the first treaty for the protection of IPR to which the UAE has acceded.

In many cases the foreign agent/distributor of an American product or service may register a trademark in his name to speed things up, don’t allow that to happen. The American firm should initiate registration of its trademark before an agency/distributorship is reached. Obtaining an international trademark protection is of utmost importance that requires filing separate patent and trademark applications for protection in each country.

WORKING WITH INTERNATIONAL COUNSEL

American lawyers practice domestic law, but companies who embark on doing business in the Middle East must seek a legal counsel with Arab speaking lawyer admitted to the bar of the country where business is being conducted. Foreign lawyers have different legal traditions; legal education, ethical views and they operate in different and unfamiliar ways.

Middle East lawyers may not understand your business, your industry or your documentation process. They are familiar with the inner work of the local government agencies. Their retainer fee is much less than what an American lawyer charges. The search for a foreign legal counsel could be obtained from the US Embassy abroad or from the US Dept. of Commerce.

The research for drafting an agency/distributorship agreement should be done here in the United States to conform to US and international law, in consultation with the foreign counsel for conformity with Islamic and local laws.

AGENCY/DISTRIBUTORSHIP AGREEMENTS

The most commonly ways of selling in the Middle East is by appointing a commercial agent/distributor; other forms of sales is to establish a company presence through a joint venture, or authorization to a local firm via a licensing or franchising arrangements.

US exporters with different lines of products may find it more advantageous to appoint different commercial agents or distributors in different states. Many companies handle numerous product lines, making it sometimes difficult to promote all products effectively. Most agents or distributors prefer to handle products on an exclusive basis.

Different countries have different commercial agency laws. Some laws do not distinguish between an agent and distributor, referring to both as commercial agents.

Selecting the right agent or distributor is the most important decision, because termination of a contract without compensation is difficult. Most US firms found themselves paying considerable amount of money to buy their way out of an agreement irrespective of any specific performance criteria, which may have been agreed by the parties.

DISPUTE SETTLEMENT



Some countries in the Middle East are members of the International Center for the Settlement of Investment Disputes. However, most of the disputes are handled through arbitration or have been resolved by the parties involved. Some disputes may end up in the court for arbitration.

TRADE REGULATIONS AND STANDARDS



Each country in the Middle East operates its own customs authority. In recent years there has been a progress between the United Arab Emirates to create Customs Council whose priority is to establish a customs union within the UAE to unify Customs rules and regulations, procedures and documentation. Paying off officials to sell products overseas is a violation to the US law. The Justice Department is using aggressive tactics to investigate potential Foreign Corrupt Practices Act (FCPA) violations.

 

Gabriel Sawma, a lawyer dealing with International Law, mainly the European Union Law, the Middle East Law and Islamic Shari’a law. Professor of Middle East Constitutional Law, Islamic Shari’a, Arabic and Aramaic languages. Expert witness on Islamic marriage contracts, including the mahr; expert witness on U.S.-Middle East commercial contracts. Member of the Beirut Bar Association in Lebanon; The New York State Bar Association; Associate member of the American Bar Association. Author of an upcoming book on “Islamic marriage Contracts in U.S. Courts and the Mahr.” Author of an upcoming book on conflicts in U.S. Midlle East Commercial Contracts. Editor of International Law website: http://www.gabrielsawma.blogspot.com, Email: gabrielsawma@yahoo.com

Everyone has heard about refinancing their mortgage, as it is very common amongst people these days. What you may not heard, but you may not have thought about refinancing your car loan when interest rates drop. Refinancing an auto loan can be a good idea for several reasons, and it is easier than refinancing a mortgage.

Refinancing could save thousands of dollars over the life of the loan, even if you received a decent rate. Anyone who didn’t get a car loan below 3% APR should consider refinancing. More than likely, however, your APR was much higher than that. If you had a few dings on your credit report when you bought a car, the lender may have quoted you 20% to 25% Annual Percentage Rate (APR). Despite what you might think, you aren’t stuck at this interest rate. Once you have

held the loan for about 6 months and made all payments on time, you will find lenders are now more willing to take a chance on you. You can also change a few of your habits to raise your credit score in that period.

An example would be if you were to be approved for an amount of $16,500 auto finance for a term of 60 months at 21% APR. If you considered to refinance your auto loan at 7% APR, your monthly payments will drop from the original amount of $446 to a new discount of $330. Those savings over the life of the loan total about $6,945. As you see, looking to renegotiate your auto finance is a key to saving money.

Refinancing does not just save you money, but it can also be seen as the only way to assist you with your debt troubles. If you are paying 27% or more APR, there is no way you will ever be able to get out of debt while making these monthly payments. Since you will be paying most of the interest charges early in the life of the auto loan, the earlier you consider refinance, the better as it will be saving you money.

One of the big differences between auto finance and home loan mortgages is that the financial lenders will not refinance your auto finance that they originally lend you. You will need to locate a different lender to refinance your auto loan. You may find these lenders at banks, credit unions, and online that will refinance your auto loan. Remember to shop around for the best refinancing rates to get your best deal. When applying online, it usually only takes 1 or 2 minutes to fill out an online application. There is generally no risk involved in applying for a refinance.

Sean Patrick is an automotive finance specialist with over 5 years experience in the Auto Finance world. Currently he is working with the company Car Loan Today.
You may the web site with helpful tips here:

Auto Finance Resources

It is becoming more and more popular to start your own business and women are going into business just as much as men. There is much to know about starting a business, and here there are five important things women should know before starting their business.

First you are going to want to speak with some business professionals. Here is a list of persons you will want to speak with to get your business on the right foot. A good accountant can show you how to set up proper book keeping as well as record keeping for taxes. A lawyer who specializes in small business can legalize your business name and counsel you on how to protect yourself from possible business related lawsuits. A casualty or licensed property agent can help you to evaluate your insurance needs. They can better narrow down specific areas that you may need additional insurance coverage. Lastly you will want to speak to a business coach who can help you find start up money, as well as help in areas of bookkeeping and possible future business expansion. There are some places you can find more helpful information. Your local chamber of commerce is a great location to start. Also local women’s business clubs can steer you in the right direction. Be sure to check you library for county business directories.

Second be sure to know exactly what type of business insurance you need. It’s best to first check your homeowner’s policy to look for possible personal business coverage. If this is included you can have your policy extended for this coverage. If your policy does not allow this you may find better luck speaking to an independent insurance agent.

Third piece of knowledge is to know ahead of time if you will go into business on your own or with a partner. You will want to decide on either a sole proprietership or a partnership. If you go solo you are the owner and take on full responsibility for the business. If you choose to take on a co-owner be sure to discuss this with your attorney to discuss any preventive maintenance when it comes to your financial set up.

Fourth, be sure to have a solid idea of the cost of your business. Create a thorough business plan. This will allow you to know if you will need financial assistance such as a bank loan or if you will want to look for other outside investors. You can also search for government grants that are specifically created for women in business.

Fifth and final choose if your business will be run in home or out of home. This choice also includes insurance coverage and grant information.

All of the above go hand in hand to create a solid base for your business. Be sure to speak to business personnel, and do some research. Knowledge is power when it comes to creating your own business. Arm yourself with all the business knowledge you can. Take some business courses or seminars. Once you have a good understanding of how your business is to be set up and run you will be well on your way to a successful business.

Cherie Ang is the owner of SGProfitSite.com. To find the best home based business ideas and opportunities so you can work at home visit: http://www.SGProfitSite.com

How as a corporate manager you can ensure that your company is conducting business a way that is responsible and ethically sound?



In order to ensure the company is conducting  business  responsibly and ethically sound the following point given below are very much necessary to ensure:

 

Ethical issues and society – examples



    * Involvement in the community

    * Honesty, truthfulness and fairness in marketing

    * Use of animals in product testing

    * Agricultural practices e.g. intensive faming

    * The degree of safety built into product design

    * Donation to good causes

    *  The extent to which a business accepts its alleged responsibilities for  mishaps,   spillages and

    * leaks

    * The selling of addictive products e.g. tobacco

    * Involvement in the arms trade

    * Trading with repressive regimes

Ethical issues arising from internal and industry practices – examples



    * Treatment of customers – e.g. honoring the spirit as well as the letter of the law in respect to warranties and after sales service

    * The number and proportion of women and ethnic minority people in senior positions

    * The organization’s loyalty to employees when it is in difficult economic conditions

    * Employment of disabled people

    * Working conditions and treatment of workers

    * Bribes to secure contracts

    * Child labor in the developing world

    * Business practices of supply firms

Unethical practices in marketing – examples



    * Pricing lack of clarity in pricing

    * Dumping – selling at a loss to increase market share and destroy competition in order to subsequently raise prices

    * Price fixing cartels

    * Encouraging people to claim prizes when they phoning premium rate numbers

    * Bait and switch” selling – attracting customers and then subjecting them to high    pressure       selling techniques to switch to an more expensive alternative

    * High pressure selling – especially in relation to groups such as the elderly

    * Counterfeit goods and brand piracy

    * Copying the style of packaging in an attempt to mislead consumers

    * Deceptive advertising

    * Irresponsible issue of credit cards and the irresponsible raising of credit limits

    * Unethical practices in market research and competitor intelligence

Unethical practices relating to products – examples

    * Selling goods abroad which are banned at home

    * Omitting to provide information on side effects

    * Unsafe products

    * Built in obsolescence

    * Wasteful and unnecessary packaging

    * Deception on size and content

    * Inaccurate and incomplete testing of products

    * Treatment of animals in product testing

Ethics and the supply chain



It would be hypocritical to claim to be a ethical firm if it turned a blind to unethical practices by suppliers in the supply chain. In particular:

    * The use of child labor and forced labor

    * Production in sweatshops

    * Violation of the basic rights of workers

    * Ignoring of health, safety and environmental standards

An ethical producer has to be concerned with what is practiced by all firms (upstream and downstream) in the supply chain.

Bribery

This is a key ethical issue in business

    * It first needs to be stated that bribery to secure a contract (especially a contract with a public sector body) is against the law and severe penalties can result

    * However, it is sometimes seem (wrongly) as a victimless crime and is often rationalized in terms of “if we don’t offer a bribery, others will”

    * From a moral or ethical perspective it should be approached not in terms of “can we get away” with it but is it right to offer a bribe to secure a contract

Institute of Business Ethics Suggestions for Good Practice

The Institute recommends that organizations issue statements of ethical practice in respect of:

    * Relations with customers

    * Relations with shareholders and other investors

    * Relations with employees

    * Relations with suppliers

    * Relations with the government and the local community

    * The environment

    * Relations with competitors

    * Issues relating to international business

    * Behavior in relations to mergers and takeovers

    * Ethical issues concerning directors and managers

    * Compliance and verification

What is an Ethical code?



This is a set of principles governing morality and acceptable behaviour

It is likely to cover:

    * Personal behavior e.g. when dealing with customers and suppliers

    * Corporate behavior e.g. when negotiating deals

    * Behavior towards society e.g. when recruiting

    * Behavior towards the environment e.g. when deciding on process

Ethical audit



This is an audit of all the firms’ activities



Purpose:



    * To check that ethical principles are being pursued

    * To check the extent to which actions are consistent with the organization’s stated ethical intentions

    * And to establish action plans if they are not

Kamran Uddin