Arbitration Is International: International In The Model Law Of International

In the Model Law arbitration is international if any one of four different situations is present:

1) The parties to the arbitration agreement have, at the time of the conclusion of the agreement, their places of business in different States.

This rule is then modified to provide that “if a party has more than one place of business, the place of business [for determining whether the arbitration is international] is that which has the closest relationship to the arbitration agreement.” Therefore, under this provision, if the local office in State A of a multinational company from State B enters into a contract with a company from State A calling for arbitration in State A, the arbitration would not be international in State A.

2) The place of arbitration, if determined in or pursuant to, the arbitration agreement, is situated outside the State in which the parties have their places of business.

Under this provision two parties from State A might agree to arbitrate in State B. If State B had adopted the Model Law, the arbitration would be international in State B.

3) Any plac...