Application of International Law

Application of International Law

Sonia D. Shead

BUS212

September 5, 2013

Argosy University Online

Application of International Law

International law and its application to companies should be carefully explored and understood before deciding to do business internationally. In this paper, I will explore a scenario of two companies entering a joint venture, one based in the United States and the other based in Russia. In my research, I will answer the following questions:

• What laws govern arbitration in the U.S.? In Russia?

• In my opinion, in which country should the dispute be handled?

• What are the advantages and disadvantages for Monarch Associates under the arbitration arrangement?

• If you were Monarch Associates’ in house counsel, what advice would I give them on negotiating future joint ventures with Russian businesses?

• What other considerations should Monarch Associates keep in mind in the formation of any future contracts with foreign companies?

It is understood that the two businesses are Monarch Associates which is a computer parts manufacturer in the U.S., and Vladir Unlimited is a Russian computer technology company.

In order to properly research the information needed to write this paper, I needed to understand exactly what the word arbitration meant. According to the Merriam-Webster online dictionary, arbitration is a process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. ("Arbitration - Definition and More from the Free Merriam-Webster Dictionary", n.d.) Arbitration is basically another word for mediation.

Laws that govern arbitration in the U.S.

“The Federal Arbitration Act, passed by the United States Congress in 1925, authorizes parties to agree to circumvent the courts and settle their dispute with an arbitrator — a private party, generally a lawyer, who hears the facts as told by each...