Legal and Regulatory Aspects of J&J Operations in Australia

This report provides a comprehensive overview of the legal and regulatory framework governing the operations of Johnson & Johnson (J&J) in Australia. It examines key legislation, including the Corporations Act of 2001, the Fair Work Act of 2009, and the Competition and Consumer Act of 2010, highlighting their impact on J&J's business practices. The report also analyzes the role of various regulatory bodies, such as the Australian Securities and Investment Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC), in ensuring compliance. Furthermore, it explores the significance of international treaties, conventions, and agreements, such as Free Trade Agreements, Double Taxation Avoidance Agreements, and the World Trade Organization (WTO) agreements, in facilitating international trade and defining J&J's obligations. The report also addresses intellectual property laws, foreign direct investment regulations, and arbitration frameworks, providing a holistic understanding of the legal environment in which J&J operates in Australia. It also discusses the Closer Economic Relations Trade Agreement between Australia and New Zealand, and the Marrakesh Agreement, while also touching on the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration.

1
Legalities in international business

2
Executive summary
The report is focused on the legislative aspect pertaining to the multinational company
Johnson & Johnson as far as its modus operandi in Australia is concerned. The aspects of
treaties, conventions and agreements at the international level are also incorporated in the
report as far as the international trade of the products and services of Johnson & Johnson
Pacific Pty Limited is concerned along with the aspect pertaining to the various policies and
regulations with regard to the functioning in Australia is concerned.

3
Multinational Company in Australia
The multinational company opted with regard to its operations in the market of Australia is
Johnson & Johnson. The industry with which Johnson & Johnson is associated is health care.
In Australia and New Zealand combined, the number of employees overall is around three
hundred and twenty. It entered in Australian market in the year 1932 thereby trading as
Johnson & Johnson Pacific Pty Ltd, a subsidiary of Johnson & Johnson (Holloway and
Galvin, 2016). It was founded in the year 1886 and is presently headquartered in New
Brunswick, a city in the American state of New Jersey (Johnson & Johnson, 2019). At the
global level, there are around one hundred and thirty four thousand employees at various
departments of Johnson & Johnson. Since its inception in 1886, it has carved a niche of itself
at the global level to a huge extent (Wickramasinghe, 2016).
Legislative framework
Various legislations in Australia play a vital role with regard to the modus operandi of
multinational companies in Australia. For example, the Corporations Act of 2001 is indented
to govern the functioning of the multinational companies in Australia by setting out the
regulations at the federal and state levels accordingly (Parkin, 2015). Sub-section (xx) of
Section 51 of the Constitution of Australia implies that the Parliament of Australia is
empowered to pass laws pertaining to the entry and expansion of foreign companies in
Australia as far as Johnson & Johnson is concerned (Grant, Ryan and Kelly, 2016). The
Australian Securities and Investment Commission are facilitated by the Corporations Act of
2001 with regard to the investigations pertaining to the malpractices of multinational
companies in Australia as far as Johnson & Johnson Pacific Pty Ltd is concerned.
Additionally, the Fair Work Act of 2009 would also play a vital role in the modus operandi of
Johnson & Johnson Pacific Pty Ltd in Australia as far as the development of the system
pertaining to industrial relations in Australia is concerned. As a result, the Fair Work
Commission is constituted accordingly to look into and investigate the matters pertaining to
issues of the employees of Johnson & Johnson Pacific Pty Ltd as far as the aspect of fairness
is concerned (McCrystal, 2018). Furthermore, the Competition and Consumer Act of 2010
would also play in important role in order to result in a comprehensive solution to the
customers of Johnson & Johnson Pacific Pty Ltd as far as fair trading is concerned. The
investigation pertaining to the Competition and Consumer Act of 2010 is carried out by the
Australian Competition and Consumer Commission. With regard to the issues pertaining to
the violations of the Competition and Consumer Act of 2010, the Federal Court of Australia
is empowered to resolve the disputes. The Australian Consumer Law is set by Schedule 2 of
the Competition and Consumer Act of 2010. Section 18 of the Australian Consumer Law
implies that with regard to deception or misleading acts on part of multinational companies
such as Johnson & Johnson Pacific Pty Ltd, actions can be initiated not only by the
Australian Competition and Consumer Commission but also the aggrieved or victimised
individual. Since Australia is under the monarchy of the United Kingdom and a part of the
Commonwealth, the common law of England and Wales is also applicable as far as the
precedents set by the courts under the purview of common law jurisdiction is concerned. As a

4
result, it is imperative that the courts while addressing the issues pertaining to Johnson &
Johnson Pacific Pty Ltd may refer to the guidelines and frameworks set out by the courts
under the ambit of common law jurisdiction. Moreover, the frameworks in terms of
arbitration can also be considered as far as the resolution of disputes through alternative
means is concerned. It would play a vital role with regard to the avoiding of complexities
involved in litigation in courts which involves not only consumption of a huge amount of
time but also an expenditure of a huge amount of finances. In case of arbitration at the
domestic level, the legislation pertaining to arbitration applicable in the respective state or
territory would be taken into consideration as far as the jurisdiction is concerned if Johnson &
Johnson Pacific Pty Ltd plans to seek remedial measures by the virtue of arbitration. If the
arbitration is at the global stage, the International Arbitration Act of 1974 would be taken into
account accordingly. In this regard, it is also to be seen that up to what extent, the United
Nations Commission on International Trade Law Model Law on International Commercial
Arbitration would be applicable in the aspect pertaining to international arbitration involving
multinational companies in Australia such as Johnson & Johnson Pacific Pty Ltd. Since
Australia is a party to the Convention on the Recognition of Foreign Awards of 1958,
colloquially known as the New York Convention, foreign arbitral awards are applicable and
enforceable in Australia as far as the proper and appropriate resolution of the disputes
through arbitration pertaining to Johnson & Johnson Pacific Pty Ltd is concerned. The
intellectual property laws pertaining to the protection of designs, copyrights, patents and
trademarks are also applicable in the modus operandi of Johnson & Johnson Pacific Pty Ltd
in Australia. The governing body in this regard is Intellectual Property Australia which sets
out the regulatory framework pertaining to the application of the laws pertaining to
intellectual property accordingly and the carrying out of the activities pertaining to the
registration accordingly. The regulations pertaining to Foreign Direct Investment also plays a
vital role in the aspect pertaining to the modus operandi of Johnson & Johnson Pacific Pty
Ltd in Australia. In accordance with the provisions enshrined and envisaged in the Income
Tax Assessment Act of 1997, thirty percent of the income generated by Johnson & Johnson
Pacific Pty Ltd would be taxable accordingly. It may be 27.5 percent if the annual turnover is
not so high on part of Johnson & Johnson Pacific Pty Ltd. The assessment pertaining to the
tax payable by Johnson & Johnson Pacific Pty Ltd would be carried out by the Australian Tax
Office accordingly. The income from 1st July to 30th June for Johnson & Johnson Pacific Pty
Ltd is to be taken into account accordingly as far as the evaluation of tax is concerned.
Treaties, Conventions and Agreements
The Free Trade Agreements signed by Australia with various countries would play an
important role in the sales pertaining to products and services of Johnson & Johnson Pacific
Pty Ltd. It helps in the export and import of the products and services of Johnson & Johnson
Pacific Pty Ltd. Additionally, the tax treaties signed by Australia with different countries
would also play an important role in the determination of the amount of tax to be paid as far
as the role of Australian Tax Office. The key aspect in this regard would be the Double
Taxation Avoidance Agreements accordingly. In such aspect, the bilateral agreements would
also play an extremely vital role which has been signed between Australia and the other

5
country concerned with regard to the trading of products and services pertaining to Johnson
& Johnson Pacific Pty Ltd. With reference to arbitration at the international level as
aforesaid, the arbitration agreement would be within the meaning as stipulated by Sub-section
1 of Section 3 of the International Arbitration Act of 1974 as far as the standards prescribed
by the Convention on the Recognition of Foreign Awards of 1958 are concerned. The
principles relating to intellectual property as set out by the Trade Related Aspects of
Intellectual Property Rights would also be applicable in terms of issues pertaining to patents,
copyrights and trademarks at the international level in relation to Johnson & Johnson Pacific
Pty Limited due to the fact that Australia is a party to the Trade Related Aspects of
Intellectual Property Rights. As a result, the role of World Trade Organisation is extremely
important in this regard with reference to the imposition of tariffs pertaining to trade as far as
the products and services of Johnson & Johnson Pacific Pty Ltd (Javorcik and Narciso, 2017).
The Closer Economic Relations Trade Agreement between Australia and New Zealand
facilitates the trade between Australia and New Zealand in a proper and appropriate manner
without any major restrictions and limitations as far as the concept of Trans Tasman is
concerned in terms of the relations between New Zealand and Australia. The World Trade
Organisation is purported to play a vital role in various aspects which imply the setting out of
various kinds of regulations pertaining to international trade for various goods and services
by the virtue of supervising the drafting and execution of various kinds of international trade
agreements along with the concepts pertaining to intellectual property accordingly.
Additionally, it also supervises the aspects pertaining to dispute resolution in various spheres
as far as the compliance with the agreements of the World Trade Organisation is concerned
(Hoda, 2018). The Marrakesh Agreement governs the modus operandi of the World Trade
Organisation as far as the aspects relating to international trade and dispute resolution of
Johnson & Johnson Pacific Pty Limited is concerned along with the issues of Johnson &
Johnson Pacific Pty Limited with regard to intellectual property at the international level. The
Trade Related Aspects of Intellectual Property Rights as aforesaid is an agreement formulated
under the supervision of World Trade Organisation. As a result, it is imperative that the
World Trade Organisation has a vital role to play with respect to regulatory framework as far
as the aspect of international trade on part of Johnson & Johnson Pacific Pty Limited is
concerned with regard to the services and products as far as export and import is concerned.
It is imperative that the World Trade Organisation since its establishment has hitherto played
an important role with respect to the promotion of international trade at a massive level. The
United Nations Commission on International Trade Law Model Law on International
Commercial Arbitration may also be applicable in the instances pertaining to international
arbitration involving the products and services of Johnson & Johnson Pacific Pty Limited as
aforesaid. It would help in the addressing of conflicts at the international level in a proper and
appropriate manner. The international treaties with regard to health and safety along with the
issues pertaining to environment are also applicable in such aspects. To a massive extent,
these kinds of conventions, treaties and agreements play a vital role with regard to the
providing of products and services on part of Johnson & Johnson Pacific Pty Limited. With
regard to the concepts of accounts and taxes, the agreements pertaining to transfer pricing
would also play a key role with reference to the guidelines regarding the transactions with
regard to pricing amongst the entities having common control and management accordingly.

6
Such agreements are primarily made between the ones who are the intended taxpayers and
the governments. The aspect pertaining to arms-length principle is applicable with regard to
such kinds of agreements as far as the concepts of equality and fairness pertaining to
transactions is concerned (Durose, Justice and Skelcher, 2015). They are popularly known by
the term advanced pricing agreements. In addition to such kinds of agreement, the Double
Taxation Avoidance Agreements would also play the key role regarding the imposition of
taxes on Johnson & Johnson Pacific Pty Limited. Additionally, the aspects pertaining to
profit shifting and base erosion would also have an essential role to play with respect to
planning in terms of taxes on part of multinational entities on part of Johnson & Johnson
Pacific Pty Limited with regard to the elimination of the base pertaining to jurisdictions
involving higher amounts of taxes as far as the Double Taxation Avoidance Agreements are
concerned.

7
Reference List
Durose, C., Justice, J. and Skelcher, C., 2015. Governing at arm's length: eroding or
enhancing democracy?. Policy & Politics, 43(1), pp.137-153.
Grant, B., Ryan, R. and Kelly, A., 2016. The Australian Government’s “White Paper on
Reform of the Federation” and the future of Australian local government. International
Journal of Public Administration, 39(10), pp.707-717.
Hoda, A., 2018. Tariff Negotiations and Renegotiations under the GATT and the WTO:
Procedures and Practices. 6th ed. Cambridge: Cambridge University Press.
Holloway, I. and Galvin, K., 2016. Qualitative research in nursing and healthcare. 5th ed.
New Jersey: John Wiley & Sons.
Javorcik, B.S. and Narciso, G., 2017. WTO accession and tariff evasion. Journal of
Development Economics, 125, pp.59-71.
Johnson & Johnson, 2019. Our Company. About Johnson & Johnson. Available at :
https://www.jnj.com/about-jnj. (Accessed on April 30, 2019)
McCrystal, S., 2018. Termination of Enterprise Agreements under the'Fair Work Act
2009'(Cth) and Final Offer Arbitration. Australian Journal of Labour Law, 31(2), pp.131-
156.
Parkin, C., 2015. Proportionate liability under the Corporations Act and the ASIC Act. Bar
News: The Journal of the NSW Bar Association, (Winter 2015), p.21.
Wickramasinghe, N. ed., 2016. Handbook of research on healthcare administration and
management. 8th ed. Pennsylvania: IGI Global.