Application of International Law, Essay Example

Arbitration is a category of ADR (alternate differences resolving process) in which the disagreements between two commercial international parties are mediated without the inclusion of the courts systems. The parties involved agree to obey the rules of the international arbitration agreement and the potential outcomes. Mediators which pertain to a neutral third party may be applied in the dispute resolution. The perspectives of Cornell University (2014), Drahozal (2007), Hendrix and Nikiforov (2012) and the ICC (2010) will be examined with regards to the commercial international disagreement between Monarch Associates and Vladir International.

The organization which administrates arbitration in the United States is acknowledged as the “AAA” or “American Arbitration Association” (Drahozal, 2007: 64). The “ICDR (International Center for Dispute Resolution) “possesses offices in Singapore, Mexico City, Dublin and New York. The United States participates in the “ICSID, Panamanian and the New York Conventions” (Drahozal, 2007: 64). The international investor disputes may also be administrated by means of the” NAFTA (North American Free Trade Agreements)”   and other diverse organizations which have provisions for international investor disputes  (Drahozal 2007: 64).

In Russia, the organization which administrates arbitrage is the FTASC. The FTAC (Foreign Trading Arbitrating Commission) had been established over eight decades ago in order to provide support to Russian investments and international investors speculating in Russian enterprises (Hendrix & Nikiforov, 2012: 3). The Russian disputes may also be mediated in Sweden at the Arbitration Institute of the Stockholm Chamber of Commerce (Hendrix & Nikiforov, 2012: 3).  In my opinion, the dispute should be mediated in Russia, as had been initially agreed in the arbitration clause. This is attributed to the aspect of the arbitrage agreement which was agreed and signed by Monarch Associates and Vladir International (Cornell University, 2014; ICC, 2010).

The arbitration contract which had been signed between Vladir Unlimited and Monarch Associates is advantageous for Monarch Associates in the aspect that are that they will not have to spend substantial amounts of time or resources in court. This is what was previously delineated by the arbitration agreement which had been signed with Vladir Unlimited.The disadvantage in the arbitration contract which had been signed between Vladir Unlimited and Monarch Associateswith respect to Monarch Associates is that the arbitration must be held in Russia (Cornell University, 2014; ICC, 2010). This is what had been stipulated in the agreement.

If I were Monarch Associates in house counsel, the advice that I would supply to Monarch Associates in negotiating their future ventures with Russian partners would be  to plan and implement an arbitration clause which states that the business disputes might be settled by mediators in United States within the jurisdiction of United States law. The stipulation may also be made that any disagreements be settled in court through due process of law without any arbitration agreements (Cornell University, 2014; ICC, 2010). 

Monarch Associates may wish to consider avoiding the signing of any stipulation clauses with future partners who require that arbitration agreements be agreed and signed. In this manner of avoiding the signing of arbitration agreements, Monarch Associates would be able to avoid the hardship of settling disagreements with third party mediators in international territories. Monarch Associates may wish to consider not agreeing to sign any arbitration agreements with future partners in the future and resolving any disagreements through the United States legal system (Cornell University, 2014; ICC, 2010). 

References

Cornell University (2014). International Commercial Arbitration Guide. Cornell University Law Library.

Drahozal, C. R. ( 2007). International arbitration law in the United States. University of Kansas.

Hendrix, G. & Nikiforov, I. (2012). International commercial arbitration practice in the Russian Federation. International Arbitration Practice (in press). 

ICC (2010). Arbitration. International Chamber of Commerce.