Due: April 9 2014
Arbitration in the United States and Russia
Arbitration is a process that involves two companies submitting their disputes to a third-party to assist in the resolution and settlement of the issue. (Kubasek & Brown, 2008) Arbitration is a difficult matter to handle and it becomes even more complex when dealing with international laws in the matter. The United States and Russia have drastically different rules that apply to arbitration so determining whose rules need to be followed can change the framework of a contract. The United States Arbitration Act was passed on February 2, 1925 to help private disputes be handled through arbitration. (Wikipedia, 2013) “An Act to make valid and enforceable written provisions or agreements for arbitration of disputes arising out of contracts, maritime transactions, or commerce among the States or Territories or with foreign nations” is the long title for the act according to the United States Congress. (Wikipedia, 2013) This act provides a legally binding award to the winner of the arbitration hearing in a court of law. Included in the arbitration act is that once the award has been issued there is no appeal process. Once the award has been confirmed the award will be brought down to an “enforceable judgment” and then issued like a regular judgment in a court of law. These awards must be confirmed within one year and any objections the losing party has must be entered within three months.
In early Soviet Union the Arbitration Institute of the Stockholm Chamber of Commerce governed the laws for arbitration. Disputes were handled quickly and awards were handled routinely. After the collapse of the Soviet Union many foreign companies began to look to invest in Russia, but with no confidence in the Russian courts many sought after international arbitration. Put in place in 1993, Russia’s law of International Commercial Arbitration is
References: Kubasek; Brennan; Browne, N. (2008). Legal Environment of Business [VitalSouce bookshelf version]. Retrieved from http://digitalbookshelf.argosy.edu/books/0558228925/id/ch09 Ruscham. (2010). Arbitration Involving Russia. Russian – European Chamber of Commerce. Russian Retrieved from http://www.ruscham.com/en/rossinfo/db/9.html TPPRF. (n.d). Advantages of the ICAC. The Chamber of Commerce and Industry of the Russian Federation. Retrieved from http://www.tpprf-mkac.ru/en/-whatis-/preim UNCITRAL. (2014). Convention on the Recognition and Enforcement of Foreign Arbitral Awards. United Nations Commission on International Trade Law. Retrieved from http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention.html Wikipedia. Federal Arbitration Act. (2013). Wikipedia. Retrieved from http://en.wikipedia.org/wiki/Federal_Arbitration_Act