CH 3 Resolving International Commercial Disputes

The Full Faith and Credit Clause of the U.S. Constitution applies to foreign court judgments.

False

ADR refers to:

Alternative (or Alternate) Dispute Resolution

The results of a mediation are not binding on either party.

True

Under the Full Faith and Credit Clause of the U.S. Constitution, a decision by a New York court will be enforced by a Georgia court.

True

There are several reasons that a court will not enforce an arbitration agreement. All of the following are reasons for not enforcing except:

Arbitration was obtained in the incorrect venue

The Bhopal disaster taught American corporations that they could insulate themselves from legal liability by having foreign control of the plant.

False

Choice of law clauses in contracts stipulate in advance what court the parties will use in case of a dispute.

False

If a party is dissatisfied with a decision reached at arbitration, it may appeal this decision to a court of law.

False

Settlement of a dispute by arbitration never makes the decision binding.

False

If a U.S. company and an Austrian company end up in a dispute about a contract they entered into that contains an arbitration clause, a case brought before a U.S. court would:

Not be heard by the U.S. court because U.S. courts accept arbitration as a form of dispute resolution.

One popular form of dispute settlement is arbitration. This is defined as:

Submission for determination of the disputed matter to a private unofficial person selected by agreement.

In a California lawsuit between a U.S. resident and a manufacturer based in Taiwan, what might limit the jurisdiction of the California court?

The Due Process Clause of the Fourteenth Amendment

What are correct statements about the Graduate Management Admission v. Raju case?

The defendant had minimum contacts with the United States

A basis for the non-enforcement of a foreign judgment is that there was not proper notice.

True

A global economy cannot function unless business people know that there will be timely adjudication of disputes.

True

In an arbitration agreement, the parties may choose to restrict the arbitrator's powers or let the arbitrator decide what is equitable and good.

True

In an international dispute, the courts of both nations may assert jurisdiction over the matter.

True

Litigation is used more frequently as a means of settling business disputes in the U.S. than in virtually any other country.

True

With mediation as a form of dispute resolution, the parties may at any point initiate litigation or agree to submit the dispute to arbitration.

True

The disadvantages of arbitration include: I. Limited Discovery II. Limited Rights to Appeal

a) I b) II c) none d) Both I and II answer: d