As a corporate legal department, one of your biggest challenges is keeping up with the ever-changing laws and regulations around the world. One day, you might find that a new law has been passed in a particular country that affects your business, and you need to contact all of your vendors in that country to ensure that they’re aware of the changes and are in compliance.
This was the situation that faced a legal department in a large multinational corporation. They had recently become aware of new regulations in a country where they had several vendors, and they needed to contact each of those vendors to clarify their planned actions and ensure that they were in compliance.
The problem was that they had contracts with dozens of vendors in that country, and they didn’t have an easy way to identify which vendors were affected by the new regulations. They knew that they needed to contact only some of their vendors in the country, but they didn’t want to waste time and resources contacting vendors that weren’t affected.
That’s where theContracts.net came in. The legal department used the application’s powerful reporting functionality to quickly identify all of their contracts with vendors in the country and then filter the results based on specific criteria, such as the nature of their business and the type of products they provided.
But theContracts.net didn’t stop there. Using the application’s AI-powered clause classification functionality, the legal department was able to automatically classify the contract clauses related to the new regulations that they wanted to monitor. This allowed them to quickly identify which contracts contained clauses that were affected by the new regulations and focus their efforts on those specific contracts.
Thanks to theContracts.net, the legal department was able to quickly and efficiently identify the vendors that needed to be contacted and ensure that they were in compliance with the new regulations. This not only saved the legal department time and resources but also helped to maintain the corporation’s reputation as a responsible and compliant global citizen.
By leveraging theContracts.net’s advanced AI capabilities to classify contract clauses, the legal department was able to quickly identify the contracts that needed to be reviewed and make informed decisions about which vendors needed to be contacted. This is just one example of how theContracts.net can help corporate legal departments stay on top of complex regulations and ensure that their business remains compliant in an ever-changing global landscape.
There have been many instances where changes in laws or regulations in a country have had significant impact on international business partners. For example, in 2018, Argentina passed a new data protection law called the Personal Data Protection Law 25.326. This law had significant implications for international companies doing business in Argentina, as it required all companies to comply with strict data privacy regulations and to obtain explicit consent from individuals before collecting and processing their personal data.
Another example is the Nigerian Oil and Gas Industry Content Development Act (NOGICDA) which was enacted in 2010. This law requires all international companies operating in the Nigerian oil and gas industry to incorporate Nigerian content in all aspects of their operations. This means that companies must use Nigerian service providers, employ Nigerian workers, and invest in local training and development programs. Failure to comply with the law can result in significant penalties and even the loss of operating licenses.
In both of these cases, a corporate legal department would need to review their contracts and agreements with international partners to ensure compliance with the new regulations. By using theContracts.net to automatically classify contract clauses based on the relevant topics, the legal department could quickly identify which contracts may be impacted by the new regulations and take appropriate action to update them. This would help ensure compliance with the new laws and avoid any potential legal issues or penalties.