* What laws govern arbitration in the U.S.? In Russia? Monarch Associates entered into a joint venture with Vladir Unlimited. Before signing this agreement did both parties really understand what a joint venture was going to entail. According to Jane Mallor a joint venture is “a form of business organization identical to a partnership, except that it is engaged in a single project, not carrying on a business” (Mallor, 2013). “When individuals, partnerships, or corporations make a private agreement to finance, produce, and sell goods, securities, or commodities for a limited purpose and/or a limited time, they have formed a joint venture. Joint ventures are a popular way for developing nations to attract foreign capital. (2008,
…show more content…
Secondly, the United States is a party to the New York Convention, which governs agreements in contracts involving interstate and foreign commerce and maritime transactions as well. Lastly, the arbitration agreement is subject to all applicable state law. Every state, the District of Columbia and Puerto Rico, have their own statutes concerning arbitration. These intrastate statutes govern all interstate arbitration to the exclusion of the Arbitration Act. Moreover, the Arbitration Act prevails if there is substantive conflict between the Arbitration Act and intrastate statue in an interstate or foreign case. (1989, Mills).
In Russia, the framework for arbitration includes the following: 1) The New York Convention on the Enforcement an Recognition of Foreign Arbitral Awards 1958, 2) European Convention on International Commercial Arbitration 1961, 3) Law on International Commercial Arbitration 1993, 4) Arbitrazh Procedure Code 2002. “Russia’s Law on International Commercial Arbitration of 1993 is based on the UNCITRAL Model Law on international commercial arbitration and applies to arbitration with respect to the international commercial disputes that take place in the Russian Federation. This law governs arbitrations that arise out of foreign trade or economic contracts between parties, at least one of which has its place of business abroad, or is an international organization or a company with foreign