International Commercial Law - Principles of International Commercial Arbitration

1. A U.S. company enters into a contract with a Chinese supplier. The contract includes an arbitration clause stating that “all disputes arising from the agreement shall be resolved by arbitration in Singapore.” Later, the U.S. company alleges that the contract was fraudulently induced and wants to void both the contract and the arbitration clause. Which legal principle allows the arbitration clause to remain enforceable even if the main contract is challenged for fraud?

2. A German company and a French company enter into a contract, which includes an arbitration clause stating that any dispute “arising under or relating to” the contract shall be resolved by arbitration in London under LCIA rules. The German company later claims that the contract was void due to bribery and initiates court proceedings in Germany. Which case established that such a dispute would likely fall under the arbitration clause and be arbitrated?

3. A Canadian company and a Japanese company include a clause in their contract stating, “Any dispute arising out of this contract may be resolved in the courts of Tokyo, but either party may also pursue other jurisdictions.” Later, the Canadian company files a lawsuit in the U.S. 2 What kind of forum selection clause does this contract contain?

4. A dispute arises between a Russian shipping company and a Turkish charterer over a shipping agreement. The arbitration clause in the contract states that disputes must be resolved in Stockholm. The Turkish company challenges the tribunal’s jurisdiction, arguing that the arbitration clause does not apply. Which principle gives the arbitrators the authority to decide whether they have jurisdiction to hear the dispute?

5. A British investment firm initiates arbitration against an Argentine company under the rules of the Bilateral Investment Treaty (BIT). The Argentine company argues that the firm should have first filed a lawsuit in Argentina’s local courts before initiating arbitration, as required by the BIT. Which case confirmed that arbitrators, not courts, can decide whether procedural preconditions (like a local litigation requirement) have been met?

6. A U.S. technology company and an Indian supplier agree to resolve all disputes through ICC arbitration with Singapore as the seat. A year later, the U.S. company alleges breach of contract and seeks to initiate court proceedings in California, arguing that the arbitration clause is void due to a mistake in the contract. Under which principle would the arbitration agreement still be considered enforceable, even if the main contract is void?

7. A Swiss corporation enters into a contract with a Brazilian firm for the supply of raw materials. The contract includes an arbitration clause, and the arbitration is seated in London. During arbitration, the Swiss firm argues that the proceedings should remain confidential, but the Brazilian firm disagrees. In what situation might confidentiality in arbitration not be automatically enforced?

8. An American manufacturing company enters into a contract with a French supplier. Their contract contains an arbitration clause stating that disputes must be resolved under the ICC 4 arbitration rules. The French supplier later breaches the contract, and the American company wins an arbitral award. The supplier, however, refuses to comply. What international convention would help the American company enforce the arbitral award in France?

9. A South African firm and an Australian company sign a contract to arbitrate any disputes under LCIA rules with the seat of arbitration in Singapore. The South African firm alleges that the Australian company misrepresented key facts in the contract negotiations and seeks to void the contract entirely. Which doctrine allows the arbitration tribunal to continue hearing the dispute about the alleged misrepresentation even though the main contract may be void?

10. Two multinational corporations agree to arbitrate disputes under the rules of the London Court of International Arbitration (LCIA). During a dispute, one party wants the arbitration to be heard by a national court instead, arguing that the arbitration clause does not cover the dispute. Which case confirmed that courts should interpret arbitration clauses broadly, assuming that all disputes arising from the relationship are intended to be covered by arbitration?

11. A French company enters into a sales contract with a Brazilian company, and they choose the International Chamber of Commerce (ICC) to administer any disputes arising under the contract. A dispute occurs, and the Brazilian company wishes to resolve it through litigation in Brazil instead of arbitration. The French company insists on arbitration. Which of the following best describes the role of the ICC in this scenario?

12. In an arbitration case administered by the London Court of International Arbitration (LCIA), the parties are concerned about the impartiality of the appointed arbitrator. What process does the LCIA provide if the parties want to challenge the arbitrator’s appointment?

13. Two companies, one from Japan and one from Germany, have agreed to arbitrate any disputes under the United Nations Commission on International Trade Law (UNCITRAL) Arbitration 6 Rules. However, they have not specified which arbitral institution will administer the proceedings. In this case, which of the following is the best course of action for the parties?

14. A U.S. company and an Indian company include an arbitration clause in their contract that designates the Singapore International Arbitration Centre (SIAC) to resolve disputes. However, when a dispute arises, the U.S. company argues that the arbitration should be conducted under U.S. law rather than SIAC rules. Which statement is correct regarding the role of SIAC in this dispute?

15. During an arbitration administered by the International Centre for Settlement of Investment Disputes (ICSID), the respondent state challenges the arbitral tribunal’s jurisdiction. Which of the following statements best describes ICSID’s approach to handling this jurisdictional challenge?

16. In an ICC arbitration, the tribunal issues an award, but the losing party claims that the tribunal exceeded its authority by ruling on matters outside the arbitration agreement. Under ICC arbitration rules, what is the next step the losing party can take?

17. Two parties, one from Finland and the other from the U.S., agree to arbitrate their disputes under the UNCITRAL Arbitration Rules. However, they have not specified a seat of arbitration. Which of the following is the most likely outcome regarding the seat of arbitration?