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You are an entry-level associate at a U.S. firm. Your supervisor has explained to
you that the firm is in the process of negotiating two contracts with foreign
entities for two different projects that will be performed in-country. The
first contract is with a small NGO located in Malaysia; the other is with an
large, reputable organization located in the UK. The amounts involved in both
contracts are in excess of $1 million.
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In negotiating the contract, the issue of arbitration has come up, and your supervisor
asks you to do a quick cost-benefit analysis to see if arbitration makes sense
in either or both of these contracts. Specifically, what are the costs/risks to
your firm by agreeing to arbitration, and what are the benefits?
either situation, the firm could agree to resolve disputes by arbitration,
agree to be subjected to the laws of the other country, or aggressively argue
that disputes should be resolved here in the U.S. under U.S. law. Time is of
the essence, however, and delaying negotiations could substantially affect your
firm’s ability to perform the work.
a 1–2 page double-spaced memo outlining the factors that need to be considered
and make your recommendations as to what the firm should do.