Law Commons^™

An Empirical Study Of Dispute Resolution Clauses In International Supply Contracts, John F. Coyle, Christopher R. Drahozal

Vanderbilt Journal of Transnational Law

International transactions present unique legal risks. When a contract touches several different nations, a party may not know where it will be called upon to defend a lawsuit or, alternatively, which nation's law will be applied to resolve that dispute. To mitigate these risks, parties will often write dispute resolution provisions into their contracts. Arbitration clauses and forum selection clauses help to reduce uncertainty relating to the forum. Choice-of-law clauses help to reduce uncertainty as to the governing law. Over the past few decades, such provisions have become commonplace in international contracting. And yet there exist vanishingly few empirical studies …

When Immediate Responses Fail, Shai Dothan

Vanderbilt Journal of Transnational Law

Tit-for-tat is a strategy of immediate and proportional responses. Game theorists showed that this strategy often leads to fruitful cooperation. Indeed, many legal regimes resemble a tit-for-tat strategy and benefit from its ability to avoid unnecessary conflicts. But in situations of uncertainty--when actors cannot be sure about the actions of their adversaries--a tit-for-tat strategy would destroy cooperation and lead to continuous clashes. Because tit-for-tat responds immediately, a single mistake about the intentions of the adversary can lead to retaliation and start an endless string of counterstrikes. When uncertainty prevails, a strategy of many-tits-for-many-tats is optimal. Actors applying this strategy study …

The Right To Regulate In Investor-State Arbitration: Slicing And Dicing Regulatory Carve-Outs, Vera Korzun

Vanderbilt Journal of Transnational Law

This Article examines the "right to regulate" as the power of a sovereign state to adopt and maintain government measures for public welfare objectives. It explores how claims by foreign investors in investor-state dispute settlement (ISDS) may interfere with the state's ability to regulate, and how the state can protect its right in international investment agreements. The Article first explains the structure of modern international investment law and dispute resolution. It next turns to the right to regulate and explores why regulatory disputes represent a major challenge for ISDS. It continues by analyzing how exceptions, exclusions, and other safeguard provisions …

The Future Of Sharia Law In American Arbitration, Erin Sisson

Vanderbilt Journal of Transnational Law

A rising tide of Islamophobia in the United States has led, in recent years, to state-level efforts to prohibit the application of Sharia law in American courts. While these bans have been largely unsuccessful as legislation--the U.S. Tenth Circuit Court of Appeals has even declared one such ban unconstitutional--the growing uneasiness among Americans regarding the application of Sharia law persists. Similar tensions have been addressed in Canada and the United Kingdom through reform of the application of Sharia law in alternative dispute resolution (ADR) mechanisms. By taking a critical look at the American ADR system through the lens of Canadian …

Constraining Targeting In Noninternational Armed Conflicts, Peter Margulies

Vanderbilt Journal of Transnational Law

An American drone pilot thousands of miles away from Afghanistan sees a tempting target on his computer screen. Thanks to the Predator drone's video capabilities,' the pilot is treated to the spectacle of a known Taliban commander and over a dozen other armed men greeting a dozen tribesmen, who are also armed to the teeth. Everyone depicted on-screen has a gun. The pilot fires the Predator's missile. Shortly thereafter, he confirms the deaths of thirty Taliban fighters and associated forces.

While the facts above, particularly the presence of the known Taliban commander, tend to show that the strike was consistent …

A Theory Of Wto Adjudication: From Empirical Analysis To Biased Rule Development, Juscelino F. Colares

Vanderbilt Journal of Transnational Law

The positive theory of litigation predicts that, under certain conditions, plaintiffs and defendants achieve an unremarkable and roughly equivalent share of litigation success. This Article, grounded in an empirical analysis of WTO adjudication from 1995 through 2007, reveals a high disparity between Complainant and Respondent success rates: Complainants win roughly ninety percent of the disputes. This disparity transcends Case Type, Party Identity, Income Level, and other litigant-specific characteristics. After analyzing and discarding standard empirical and theoretical alternative explanations for the systematic disparity in success rates, this study demonstrates, through an examination of patterns in WTO adjudicators' notorious decisions, that biased …

Investor-State Dispute Settlement Between Developed Countries, William S. Dodge

Vanderbilt Journal of Transnational Law

Free trade agreements between developed countries now frequently contain provisions on investor protection, but the resolution of disputes remains problematic. Chapter 11 of the North American Free Trade Agreement (NAFTA) allows investors to bring direct claims against a host state before an international tribunal without exhausting domestic remedies. This has resulted in a number of claims against the United States by Canadian investors and against Canada by U.S.investors. Chapter 11 of the Australia-United States Free Trade Agreement (AUSFTA) does not permit direct claims, relying instead on a state-to-state dispute resolution mechanism.

This Article reviews the evolution of investment-dispute resolution from …

The Problem With Arbitration Agreements, Stephen J. Choi

Vanderbilt Journal of Transnational Law

Arbitration procedures today have become highly standardized. Institutions such as the International Chamber of Commerce (ICC), the London Court of International Arbitration (LCIA), and the American Arbitration Association Center for International Dispute Resolution (AAA) each have detailed provisions for administering arbitration proceedings (often involving parties of different nationalities). Parties entering into arbitration can expect to have limited discovery, a hearing, and the ability to bring attorneys to the proceedings. While typically providing less process than formal court proceedings, the standardized nature of arbitration can lead parties to view arbitration much like court proceedings--a fixed, pre-determined process to settle disputes. Thomas …

Renegotiation And Adaptation Of International Investment Contracts, Klaus P. Berger

Vanderbilt Journal of Transnational Law

In modern-day international investment practice, especially in connection with the exploitation of natural resources, Production Sharing Agreements have come to take over the role of the classic concession agreement. Like their predecessors, these contracts are particularly vulnerable to disturbances in the commercial balance agreed to, or assumed by, the parties at the conclusion of the contract. This vulnerability has three primary causes.

First, these are classic examples of long term contracts. In the petroleum industry, the commitment of significant capital for exploration, particularly in development, and the assumption of considerable risk, particularly in exploration, require contracts covering up to and …

The Specificity Of International Arbitration: The Case For Faa Reform, William W. Park

Vanderbilt Journal of Transnational Law

Arbitration by its nature is polycentric: one might more accurately speak of arbitrations in the plural. A wide variety of disputes are included in one category, implicating differences related to the sophistication of the parties, the character of the disputes, and the public interests at stake. The current legal framework for arbitration conducted in the United States attempts to squeeze all types of arbitration into the Procrustean bed of a single set of standards for judicial review.

The United States should seriously consider eliminating judicial discretion to review the substantive merits of awards in international cases. The domestically nourished doctrine …

The Exercise Of Contract Freedom In The Making Of Arbitration Agreements, Thomas E. Carbonneau

Vanderbilt Journal of Transnational Law

The privatization and contractualization of arbitration, while they empower parties and unburden public institutions, should not eliminate completely the basis for the public regulation of the process. The string of "one-off' arbitrations, gathered together, has consequences upon the public interest in the orderly administration of adjudicative relations in both domestic and international law. The use of arbitration does have a bearing upon the substantive content of legal rights. Judicial vigilance should not only ward off the flagrant abuses of process and procedure in arbitration, but it should also establish an "interests of justice" limitation upon the operation of the process …

Globalization Of Arbitral Procedure, Gabrielle Kaufmann-Kohler

Vanderbilt Journal of Transnational Law

Imagine attending hearings in three different arbitrations: one in Geneva, one in New York, and one in Hong Kong. All three hearings will likely involve the same hotel conference rooms, the same court reporters, the same language--English, the same types of oral submissions, witness examinations, expert presentations, and procedural arguments, and often even the same people. Does this mean that arbitral procedure is globalized '--that an arbitration is conducted in a uniform manner wherever it takes place, whatever national law governs? Does national law govern at all? This paper will discuss these issues.

Setting Arbitrators' Fees: An International Survey, John Y. Gotanda

Vanderbilt Journal of Transnational Law

This Article examines the compensation policies of international arbitrators. Specifically, the Article details the results of a survey of individuals who practice in the area of international arbitration.

Initially, the Article describes the different methods of calculating the fees of the arbitral tribunal, discussing the relative advantages and disadvantages of each method. The study concludes that most arbitrators calculate their fees using a time-based method, except when the arbitral institution requires that their fees be determined under the ad valorem method.

Next, the Article examines arbitrators' policies regarding cancellation and commitment fees. Survey results highlighted confusion about whether arbitrators were …

Where's The Beef? Mad Cows And The Blight Of The Sps Agreement, Ryan D. Thomas

Vanderbilt Journal of Transnational Law

This Note will first outline the SPS Agreement itself--specifically, Part II attempts to present the relevant articles in a manner providing the necessary background for understanding the WTO dispute panel and Appellate Body decisions. Next, Part III discuss and critique, the dispute panel and Appellate Body decisions, specifically, noting the shortcomings of these decisions in the context of the SPS Agreement and its utility as a precedent of international dispute resolution in the area of international regulation of drugs and feedstuffs. Next, I will addresses the likely effect of these decisions upon a possible WTO resolution of the SRM dispute …

The Limits Of Economic Power: Section 301 And The World Trade Organization Dispute Settlement System, C. O'Neal Taylor

Vanderbilt Journal of Transnational Law

Since World War 1I, the United States has sought trade liberalization through the use of multilateral and unilateral actions under the General Agreement on Tariffs and Trade (GATT) and Section 301 of the Trade Act of 1974, respectively. Unilateralism by the United States has involved the forceful opening of foreign markets by the threat of sanctions, such as blocking access to the U.S. market. Such unilateral actions led the world trading system into the most recent multilateral negotiations, the Uruguay Round. As a result, the United States conceded to an effort to achieve trade liberalization through the expansion of GATT …

Peace And The Press: Media Rules During U.N. Peacekeeping Operations, Jennffer Lee

Vanderbilt Journal of Transnational Law

In recent years, U.N. peacekeeping operations have become an increasing focus of international military action and media coverage. While the military and the media have maintained a precarious balance in the United States between the military's objective of operational success and the media's call for uncensored reporting, the evolution and growing importance of U.N. peacekeeping offers new considerations to this balance. This Note examines the ability of the United Nations to affect the balance between the military and the media through the implementation of U.N. media rules during peacekeeping operations. This Note begins by reviewing the history of media coverage …

American Conflicts Scholarship And The New Law Merchant, Friedrich K. Juenger

Vanderbilt Journal of Transnational Law

Professor Juenger argues that both the unilateralist and the multilateralist schools of thought share a fixation on the idea that law must emanate from the power of a sovereign state. The author points out that such a view of law is a historic; that, in the past, merchants relied on a substantive body of supranational rules that transcended national borders. This Article discusses the contemporary significance of the law merchant for law professors, law students, and practitioners.

The author explains how the practices of contemporary transnational commercial enterprises, as well as the opinions of contemporary scholars , support the idea …

International Transactions And Claims Involving Government Parties: Case Law Of The Iran-United States Claims Tribunal, Richard M. Mosk Reviewer, Nils Mangard Reviewer, Koorosh H. Ameli Reviewer

Vanderbilt Journal of Transnational Law

International Transactions and Claims Involving Government Parties: Case Law of the Iran-United States Claims Tribunal

By John A. Westberg

International Law Institute

Washington, D.C.: 1991. Pp. 412. $125.

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Richard M. Mosk - reviewer

Nils Mangard - reviewer

Koorosh H. Ameli - reviewer

Contemporary Efforts To Guarantee Indigenous Rights Under International Law, Andre Lawrey

Vanderbilt Journal of Transnational Law

This Article examines recent attempts to improve international standards governing the rights of indigenous peoples. In this context, Ms. Lawrey analyzes the Australian Government's 1988 commitment to negotiate a treaty with Australia's Aboriginal and Torres Strait Islander peoples.

Ms. Lawrey discusses the strained relationship between international law and indigenous peoples. At present, indigenous groups are not guaranteed special rights under international law. Furthermore, traditional individual rights are inadequate to effectively protect indigenous land rights and the right to self-determination. Ms. Lawrey identifies developments in indigenous rights since World War II, including International Labor Organization Convention Number 107 (Convention 107) and …

Japan's East China Sea Ocean Boundaries: What Solutions Can A Confused Legal Environment Provide In A Complex Boundary Dispute?, Kendrick F. Royer

Vanderbilt Journal of Transnational Law

This Note addresses the ocean boundary delimitation conflict between Japan, China, Taiwan, and South Korea in the East China Sea. The author considers international law on boundary delimitation and concludes that the law is unclear on delimitations between states within four hundred nautical miles of one another. The International Court of Justice has held that equity is the norm to be applied to boundary delimitation disputes but it has not resolved the competition between the natural prolongation theory of delimitation and a theory based upon the Exclusive Economic Zone. The geology of the East China Sea brings this issue to …

Treaty Interpretation From A Negotiator's Perspective, Kenneth J. Vandevelde

Vanderbilt Journal of Transnational Law

The international law of treaty interpretation is based on the perspective of an objective third party, such as a court, seeking to interpret an agreement after it has been negotiated. The result is a legal regime that attempts unnecessarily to apply a uniform approach to all treaty provisions and which places primary emphasis on resolving disputes rather than on enforcing the parties' intent. This approach takes insufficient account of the actual process of treaty negotiation, undercuts the legitimacy of the court's interpretation and potentially diminishes the effectiveness of treaties as a means of governing international relations. International law needs a …

Custom And Treaty: A Response To Professor Weisburd, Anthony D'Amato

Vanderbilt Journal of Transnational Law

Arthur M. Weisburd's article, "Customary International Law: The Problem of Treaties", focuses on an important problem that has been relatively overlooked: whether current doctrinal scholarship accords too much weight to treaties as constitutive of customary practice. Few issues in international law are more important than the question of where an international rule comes from and how it is proved. Professor Weisburd has addressed a significant component of this basic question. Since he regards me as the leading offender among writers who overdetermine the value of treaties, I would like to take this opportunity to respond.

As a preliminary matter, I …

Remarks Of Professor Robert A. Friedlander, Professor Robert A. Friedlander

Vanderbilt Journal of Transnational Law

Terrorism, in its essence, consists of common crimes: murder, attempted murder, kidnapping, aggravated battery, aggravated assault, arson and whatever other act of violence is utilized for terrorist ends and as terrorist means. Admittedly the world's democracies have not only failed to develop an acceptable definition for the global arena, they have also been unable to fashion a proper meaning for their own domestic statutes. We should never forget the symbiotic relationship which exists between terrorism and democracy. As the French political analyst, Jean Francois Ravel, has cogently remarked: "The main target of international terrorism is the idea of freedom as …

The Need To Utilize International Arbitration, Gerald Aksen

Vanderbilt Journal of Transnational Law

I have been asked to discuss how to convince United States businessmen of the need for utilizing international arbitration. Basically, however, there is a realistic need for this well recognized form of alternative dispute settlement. Primarily, international arbitration affords companies the ability to avoid the uncertainties and complexities of foreign litigation. I found it interesting that Professor Vagts used the word "paradox" in referring to the existence of both the lack of effective treaties on the enforcement of foreign judgments and the host of treaties on the enforcement of foreign arbitral awards. Why is it a paradox? International arbitration was …

The Pitfalls Of International Commercial Arbitration, James M. Rhodes, Lisa Sloan

Vanderbilt Journal of Transnational Law

The purpose of this Article is to examine the pitfalls of international arbitration on a broad scale. These pitfalls can be roughly grouped into two categories: (1) those endemic to the process of dispute resolution by a "private extra-judicial tribunal which derives its power from the agreement of the parties,"2 including difficulties unforeseen in the drafting of the agreement that add delay, complications, and expense to the proceedings; and (2) those related to using the rules of a particular institution. Ideally, planning and skillful drafting can eliminate both types of pitfalls and preserve the advantages of arbitration over other available …

Negotiation Techniques For Warranty And Enforcement Clauses In International Licensing Agreements, Brian G. Brunsvold

Vanderbilt Journal of Transnational Law

The pre-negotiation planning procedure shows that information for the planning steps is needed from marketing and production personnel, lawyers, researchers, engineers, management, and a licensing specialist. A licensor usually cannot afford to have all of these personnel present at the negotiating sessions. A licensing negotiation proceeds most efficiently when the negotiating team includes people who are familiar with marketing the licensed product and experienced in the technical details of the subject matter to be licensed. A lawyer is also necessary to provide legal advice during negotiations and draft or review the negotiated agreement. There are some situations in which an …

Book Review, Nicholas A. Sims

Vanderbilt Journal of Transnational Law

It is a pleasure to welcome a well-written book on arms control, and one, moreover, that has grown out of the exigencies of an undergraduate course and is designed to meet the needs of students. Because INTERNATIONAL ARMS CONTROL: ISSUES AND AGREEMENTS was the work of several hands, its lucidity and consistency are the more admirable. Comprehensive in scope, it goes just far enough in setting arms control in its various contexts (political, military, cultural, and ethical) without straying out of bounds. It raises a multitude of questions without pretending to answer them all. I found it refreshing to read …

The Law Of The Sea Conference: Dispute Settlement In Perspective, John K. Gamble, Jr.

Vanderbilt Journal of Transnational Law

On March 15, 1976, the Third United Nations Law of the Sea Conference reconvened in New York City. The task of this Conference, drafting a new and comprehensive law of the sea treaty, is enormous. At the very least the new treaty will modify many of the traditional patterns for use and control of hydrospace. There is no doubt that coastal states will achieve the right to exercise control over all resources within 200 nautical miles of their coasts. If this contingency is not implemented by treaty, then it will be reached by unilateral claims to these zones. Agreeing on …

International Law And Conflict Resolution: Palestinian Claims And The Arab States, J. L. Taulbee, David P. Forsythe

Vanderbilt Journal of Transnational Law

Over the last few years there has been a revival of interest in international law as a mechanism for conflict resolution. These same years have seen a demonstration of the undeveloped state of international law, particularly concerning intrastate conflicts. The wide disagreement about questions of fact, legal consequence, and world order implications of internal war is a telling commentary on the current problems of applying legal standards to such conflicts. A major part of the disagreement can be explained in terms of the specific problems relating to fact determination and authoritative interpretation engendered by the nature of the environment in …

The Use Of Arbitration In The Settlement Of Bilateral Air Rights Disputes, Ross T. Dicker

Vanderbilt Journal of Transnational Law

In the field of aviation, world transportation is bound together by a highly complex and sophisticated arrangement in which each country designates a single carrier to carry its flag to foreign-countries. The United States has not followed this practice of designating one line as the nation's flag carrier and has twenty "international" carriers which transport passengers, cargo, and mail to foreign countries. Each one of these carriers is a private business concern, competing in most cases with another American carrier covering the same route, and in all cases with the air carrier of the country to which it flies. In …