Assignment Instructions
International Dispute Resolution – A Case Study in Export Contract Negotiation
You are the CEO of a rapidly growing California-based company that has just secured its first major export order, a large-volume purchase by an Italian customer. Until now, all of your company’s procurement and sales contracts have included a clause stating that any disputes will be governed by California law and settled exclusively in California courts. However, the Italian customer objects to this all-California arrangement. They insist that, given the size of the purchase and their role as the paying party, the contract should instead be governed by Italian law, and any disputes handled by Italian courts.
This is a high-stakes negotiation for your company. The export order represents a major growth opportunity, but your current law firm has no international legal experience, and you are unfamiliar with Italian legal procedures. You must now explore possible compromises and consider how best to protect your company’s interests while maintaining good faith with the foreign customer.
In this assignment, evaluate the different forms of international dispute resolution available to your company and answer these questions.
Q1. What are the key forms of international dispute resolution available to a California-based exporter entering contracts with foreign buyers, and what are the advantages and disadvantages of each method (e.g., litigation, arbitration, mediation) when negotiating with a customer from Italy? Support your analysis with relevant international legal frameworks and commercial considerations.
Q2. Should the California company agree to apply Italian law and courts to govern the contract, or insist on California law and venue? How might your decision change if the customer were based in China, Russia, or the United Kingdom? Justify your position by examining political, legal, and practical risks in cross-border dispute resolution.
In your assignment, be sure to use the textbook and integrate at least three peer-reviewed sources along with their citations and references. Your assignment must be APA formatted and include at least 1200 words.
