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Application of International Law

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Submitted By Dawn4492
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Application of International Law
By
Dawn M. Engel
Argosy University
Business Law and Corporate Ethics
Dan Adams
May 28, 2014

In the United States, Calvin Coolidge signed the Federal Arbitration Act (FAA) into law in 1925, to be effective on January 1, 1926. (Wikipedia, 2014). “International commercial arbitration in Russia is governed by another statute: Law No. 5338-1 . . . It follows the UNCITRAL Model Law almost verbatim.” (Nikiforov, 2013). Both were “enacted to establish validity and enforcement of arbitration agreements”. (James, 2011). An arbitration agreement is then written to solve disputes later on. An arbitration agreement should include what law will govern the arbitration, where and when the arbitration will take place, what language will be used, and how the expenses of arbitration will be shared. (Kubasek, Brennan, & Browne, 2009).
From what was written on the assignment, Monarch Associates gave Vladir Unlimited all advantages in the arbitrary agreement. As it was written in the agreement, Vladir Unlimited retained rights to arbitrate disputes in Russia, as well as being responsible for choosing the arbitrators for the panel. Therefore, any disputes, legal or non-legal, should be arbitrated in Russia, as agreed on when writing the arbitrary agreement.
There would be a number of things (based on the May 2013 Russia Arbitration Guide) I would advise the Monarch in-house counsel to do the next time they enter a joint venture with Russia. One point would be to take the time to understand what laws will govern the arbitration. In 2013, Russia used Law No. 5338-1 ‘On international commercial arbitration’, which follows the UNCITRAL Model Law almost word-for-word. Also find out if any amendments have been made recently. Be careful when reviewing text of an arbitration clause, whether it refers to resolution being done by state courts or

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