Application of International Law

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Application of International Law By Dawn M. Engel Argosy University Business Law and Corporate Ethics Dan Adams May 28, 2014 In the United States, Calvin Coolidge signed the Federal Arbitration Act (FAA) into law in 1925, to be effective on January 1, 1926. (Wikipedia, 2014). “International commercial arbitration in Russia is governed by another statute: Law No. 5338-1 . . . It follows the UNCITRAL Model Law almost verbatim.” (Nikiforov, 2013). Both were “enacted to establish validity and enforcement of arbitration agreements”. (James, 2011). An arbitration agreement is then written to solve disputes later on. An arbitration agreement should include what law will govern the arbitration, where and when the arbitration will take…show more content…
Make sure there are no multi-tier clauses (clauses that require negotiation before an arbitration can commence). Sometimes first-tier clause settlements require more time than the maximum period allowed for mediation. Make sure the arbitration agreement is not unilateral, as they can sometimes be found void. “In 2011, an LCIA award based on a unilateral arbitration clause was refused recognition and enforcement in Russia.” (Nikiforov, 2013) In the future, take advantage of Russian Law #5338-1, Part III, Article 11 and appoint at least one of the arbitrators. (The Russian Arbitration Association, 1993). When dealing with foreign countries in the future, make sure you are familiar with the four dimensions of international business. First, the political dimension, you should know the type of government they have, whether it is free, partly free or totalitarian. If dealing with a totalitarian government, you might reap huge profits, but you also lose most of the control running the business. If the business does help the country retain stability, you could also lose everything from the business itself to consumer trust. Second, the economic dimension, you should examine a nation’s economics, such as its rate of economic growth, inflation, budget, and trade balance. When McDonald’s decided to do business internationally, they found that it could perform well in cities that had potentially high growth rates, not just places that already had
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