International Law Chapter 3

ABC Company in the US negotiates a contract with Ajax company (Ajax) located in Finland to sell it tractors. Ajax will sell the tractors through its network of stores in Finland. The parties agree that in the event of a dispute, resolution will be in the courts of Germany located in Berlin. There is a dispute and Ajax files its lawsuit in Berlin. What result is most likely?

ABC will object that the forum chosen has no relation to the transaction, and thus the clause is invalid, and the court will likely agree.

Choice of law clause in international business contracts are often used in conjunction with

Forum selection clauses

In the famous case involving the Union Carbide plant explosion in Bhopal, India; the US federal declined to assert continuing jurisdiction to hear many Indian victim's claims for personal injury or death on the basis of:

applying the doctrine of forum non conveniens

an ______ makes a final and binding award between the parties.

arbitrator

The Full Faith and Credit Clause of the US Constitution requires:

US courts to recognize the public acts, records and judgments of other US states.

ABC Company has a contract dispute with DEF Company. There was an arbitration clause in their contract. ABC arbitrates their claim, but DEF wins. ABC is very angry, and wants to know if they have to pay the award. Generally speaking, they must do so unless:

ABC can prove misconduct or fraud by the arbitrator

Personal jurisdiction can be obtained by

Lawful service of process on defendant

A formal request for service of process through diplomatic channels to be accomplished through a foreign court on a defendant in that foreign jurisdiction is called:

Letter rogatory

The New York Convention is signed by 150 nations. It relates to:

The recognition and enforcement by courts of foreign arbitration awards.

Rules determining the geographic location of a court of competent jurisdiction to hear a case are called

Venue

Foreign Sovereign Immunities Act of 1976 generally prohibits jurisdiction by US courts to hear lawsuits filed against a foreign state unless an exception exists to that principle such as:

Commercial activity

Ellen and Ann are sisters. Ellen lives in Tarrant County, Texas and Ann lives in Mexico. They inherit a 200-acre tract of land located in Smith County, Texas. There is very confusing language in the Will left behind by their father and each of them now claims they are the sole owner of the land. Ellen files a lawsuit in Smith County, Texas court asking the court to determine title to the land and claims it must determine such based on the law that she is its sole owner. The Texas court will likely assert that it has

In rem jurisdiction to hear this dispute.

Maine Jeans of Joy, Inc. (MJJ) is in Portland and manufactures blue jeans with its special logo on the jeans and sells them nationwide. It fills an order which is placed on its Internet website by an Idaho company (ZUMA) that is for 50,000 pair of jeans. The jeans are shipped to ZUMA's facility in Boise but are of inferior quality. ZUMA uses local legal counsel to sue MJJ in Idaho State civil court for contract breach. What is the best and most common jurisdictional defense in a typical case like this that MJJ can assert?

MJJ has no "minimum contacts" with Idaho and thus there is no personal jurisdiction by the Idaho court over it.

A plaintiff in a lawsuit in a state court must prove that an individual or corporate defendant sued in the lawsuit has _______ in order to obtain personal jurisdiction over that defendant.

Minimum contacts with the forum states.

ABC Company makes furniture. It seeks to protect itself to the greatest extent possible from the expense and time of litigation by injured users of its product. It will likely place alternate dispute resolution clause on the back of each item of furniture that states injured user-purchasers parties must _____ for any claims for personal injury:

arbitrate

American Shoe Company (ASC) has a factory in Pakistan. There is an explosion there when a gas line breaks and six Pakistani employees are killed. They file a lawsuit in New York (where the company has its headquarters.) This appears to be a case where the lawyers for the deceased workers are motivated to engage in:

forum shopping