International Business Law Exam 2

Alternative Dispute Resolution (ADR)

offers a faster, cheaper, and more efficient alternative to resolving international commercial disputes than litigation.

Unlike suing, everyone must agree to do alternative dispute resolution.

Mediation

is a voluntary, nonbinding process.

Mediator

is a neutral third party that helps parties reach a settlement.

Nonbinding

Don’t have to do what the mediator says

Arbitration

is a more formalized ADR process that results in a binding award, decided by a neutral third party known as an arbitrator.

Arbitrator

is a neutral third party that helps parties reach a settlement.

Binding

Have to do what the arbitrator says

Convention

is a multilateral treaty that focuses on issues of common concern.

Multilateral Treaty

is an agreement signed by 3 or more countries.

The New York Convention

requires that an arbitration award made in one country be honored and enforced by the courts of another country, when those countries are parties to this convention.

=Member countries will enforce arbitration agreements

Litigation

is the final alternative for resolving a dispute.

=suing

Jurisdiction

is the power of a court to hear and decide a case.

Territorial Jurisdiction

is the power of courts to hear cases involving crimes, torts, or contract disputes committed within their territory.

tort

is a civil wrong.

Example: a car wreck

Subject Matter Jurisdiction

refers to the court’s authority to hear a certain type of legal matter.

Certain types of subjects

Diversity jurisdiction

is when citizens from different states sue each other.

Example of Diversity jurisdiction

Example:

• A is from MS

• B is from AL

• They enter into a contract, and someone breaches

• They have DIVERSITY JURISDICTION, so will go to federal court

In Rem jurisdiction

is a court’s power over property within its geographic boundaries.

=Over the thing/property

Example of In Rem jurisdiction

Example:

• A lives in Oktibbeha County

• B lives in Lowndes County

• A sues B over land located in Clay County

• In rem jurisdiction is in Clay County

In Personam Jurisdiction

is a court’s power over an individual or corporation.

Over the Person

Where the defendant lives

Example of In Personam Jurisdiction

Example:

• A lives in Oktibbeha County

• B lives in Lowndes County

• A sues B

• In personam jurisdiction is in Lowndes County

Minimum contacts

some connection to that state

Example:

• A lives in AL

• A owns a business located in AL

• A advertises in Ms

• A ships products to MS

• A drove to MS and signed a contract with B in Mississippi

• There are minimum contacts with MS

European Union

is an international organization comprising approximately 30 European countries and governing common economic, social, and security policies.

Help European countries trade easier

Jurisdiction in the European Union

will be in the defendant’s domicile OR if a corporation, in the member state where it’s incorporated or mainly do business.

Defendant

is the person being sued.

Domicile

is the country that a person treats at their permanent home.

Example:

• A lives in Spain

• B lives in Italy

• A sues B

• Italy and Spain are member countries of the European union

• Jurisdiction will be in Italy

Venue

refers to the geographical location of a court of competent jurisdiction where a case can be heard.

Actual physical place the case will be

Example of venue

Example:

A lives in MS

B lives in AL

While traveling through AL, A and B get into a wreck

Have diversity jurisdiction, so will go to federal court

Jurisdiction=federal court

Jurisdiction=Which court (federal or state)

Venue= Geographical location where trial will be (Whether in federal or state)

Plaintiff

is the person who is suing the defendant.

forum selection clause

is a contract provision that fixes in advance the jurisdiction and venue of any disputes that will be arbitrated or litigated.

Arbitration

is a more formalized alternative dispute resolution that results in a binding award, decided by a neutral third party known as an arbitrator.

Let arbitrator decide problem and wont go to court

Litigation

is the final alternative for resolving a dispute.

will sue in court instead of doing arbitration.

Example:

• MS resident and TN resident enter into a contract

• Forum selection clause in contract says jurisdiction and venue will be in MS, and they will do litigation rather than arbitration

Competent jurisdiction

which court has the power to hear the case

forum selection clause

is a contract provision that fixes in advance the jurisdiction and venue of any disputes that will be arbitrated or litigated.

States in contract where jurisdiction and venue will be

Conflict of Laws

refers to the rules by which courts determine which jurisdiction's laws apply to a case and how to reconcile differences between laws.

When two or more countries have different laws, and you have to decide which country's law applies.

Example of Conflict of Laws

A company in the United States makes a contract with a company in France.

The U.S. has one rule about the contract.

France has a different rule.

A dispute happens.

The court must decide which country's law to use.

Will Apply The Law of the State Where That Particular Federal Court Is Sitting

Example:

Jurisdiction and venue are in MS

Meaning, MS courts have power to hear the case (jurisdiction)

And the trial will take place in MS (Venue)

This means we will use MS law

choice of law clause

is a contract provision that states which country's laws will apply.

A part of a contract that says which country's or state's law will be used if there is a legal dispute.

Example of Choice of law clause

A U.S. company makes a contract with a French company.

The contract says:

“This contract will be governed by the laws of Mississippi.”

If there is a dispute, Mississippi law will generally be the law the contract says to use.

Judgement

means there has been a final decision made by a court.

Example of Judgement

Example:

U.S. citizens sues English citizens

Contract says we will US law

English citizen breaches contract

We win in court here in US

Judges says English citizen should pay $500,000

Will get English courts to enforce award in England so we can get our money

Comity

refers to the willingness of one government's court to respect the rules and decisions of another.

“We respect another country’s law.”

Example of Comity

A U.S. court recognizes a valid French court judgment and gives it legal effect in the U.S.