Planning for International Business Disputes

Chapter 9 examines how the expectation of future litigation affects international business transactions. After describing the general rules of adjudicative jurisdiction, it characterizes the uncertainties involved in transnational disputes. It then discusses the uses and enforceability forum selection clauses in the United States and European Union. It describes the Hague Convention on Choice of Court Agreements (HCCCA) in relation to choice-of-forum clauses. It then explains the general concepts of conflict of laws and how courts treat choice of law clauses in international contracts. It discusses recognition of foreign judgments through comity, uniform laws, and multilateral treaties. It also discusses the challenges of doing business with foreign governments, sovereign immunity, and U.S. approach in the Foreign Sovereign Immunities Act. Finally, it describes alternative dispute resolution in international transactions, its advantages in commercial contexts under the New York Convention, and the provisions of bilateral investment treaties for foreign investment arbitration.