Dispute Resolution

2045 Words9 Pages

Companies that pursue business opportunities in other countries often find themselves in social, political, economic, cultural, and legal environments governed by unfamiliar policies, laws, and regulations. Business owners need to understand that as they become a part of the global supply chains, they may need to resolve international commercial disputes. The purpose of this paper is to identify and analyze differences in international legal policies, standards, and procedures as they relate to resolution of conflicts in global business. The 1972 case, M/S Bremen v. Zapata Off-Shore Co. 407 U.S. 1 will be used to review laws such as the Foreign Corrupt Practices Act (FCPA), Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD Convention), and United Nations Convention against Corruption (UN Convention).

M/S Bremen v. Zapata Off-Shore Co. 407 U.S. 1 (1972)

Historically, American courts have held that private individuals have “no power to alter the rules of judicial jurisdiction” (Richie, 2011, p. 97). Consequently, parties were denied legitimate expectations of a freely negotiated private agreement. This practice end when the United States Supreme Court noted in its landmark decision on forum selection clause enforceability, in M/S Bremen v. Zapata Off-Shore Co. 407 U.S. 1 (1972), that agreeing in advance on a forum acceptable to both parties is an indispensable element in international trade, commerce, and contracting.

Essential Facts of the Case

The Plaintiff, Unterweser, sought a stay of action on the suit filed in U.S. District Court by Zapata, a Houston based corporation, pending resolution in the London Court of Justice. Zapata had contracted Unterweser,...

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...e U.S. FCPA. United Nations has the UN Conventions attempts to incorporate a human right dimension, making it more accepting of individual country laws than the U.S. and Britain individually. Companies choosing to pursue business opportunities in the Middle East must understand the limitations of shariah law as regards property rights and gender inequality (Ahmed, 2008 & Ibrahim, 2008). China is making considerable changes in the area of property rights to attract direct foreign investments (FDI) and promote international trade (Scott, 2008 & Zhang, 2008).

It is in the best interest of a company wishing to conduct business in another country to understand the cultural and religious influence on the legal environment and the nature of contractual agreements that are honored. Failing to understand the dynamics in the legal environment can have costly consequences.

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