Opinion Letter



Opinion Letter

Introduction

This letter is being drafted by the corporate attorney of a USA legal firm to his client the general manager of “North East Corporation”. The purpose of this letter is to aware client with the possible issues that will occur during the transaction process between the Clients Company and Renminbi's company. Further, the major issue that the Northeast Corporation would face are to decide the kind of business relationship to formulate, which include merger, joint venture, partnership, laws of distributions, ad licensing issues (Basnage et al, 2006).

In addition to this Northeast Corporation would also need to address issues like laws of trading, and Attorney and Client privilege. The Attorney of the corporation intends smooth progress of his client and mainly for this is warning the client of above defined issues and constraints.

Discussion

Background

Northeast Corporation is the largest internet service provider in the United States of America, which is mainly providing its services to six large states of USA. This Corporation is pubic limited company and covers 35 percent of internet service connection for business and residential customers (Bishop, 2007).

The manager of the company is not graded highly in the USA market because of this tricky decision making, however, the manager is planning to extend his business in the field of communication and satellites that are mainly consumed by telecommunication providers which is generally referred as “G-Sat com management”.

Whereas, G-Sat com technology is mainly produced Renminbi Telecom Company which is considered as the fifth largest manufactures of electronic equipment, and one of the largest developers of G-Sat com management in China. Hence, the management of the Northeast Company is aiming to draft a business deal with Chinese company, and extend its market shares in telecom sector (Fotenos et al, 2005).

However, signing of this deal is not easy because of several obstacles that are created by USA law such as according to the law no employee of the company is allowed to work outside the country, no network company is authorized to finalize the deal with international companies outside USA because of military threat. Further, most of the company employees are Union members, thus have rejected the investment proposal by describing that it will have a negative impact on the USA labor market.

In context of above prevailing issues, the manager of the company has contacted it attorney and has instructed him to draft a deal proposal by keeping all the prevailing issues in mind, and has corresponded its CFO to formulate a company franchise nearer to sea cost, which will only be used in dealing with Renminbi Corporation.

However, the attorney of the company has also highlighted other important issues to the manager, other than the prevailing, and has advised to reconsider his decision. In addition to this, the attorney has drafted the list of these issues, and has briefly described their altitude and importance leading to the transaction process (Hubbell's, 2002).

Key Issues

Business entity issue

The attorney of the firm has explained to the manager that in USA business can be done ...