Arbitration as a transnational business dispute resolution

Abstract

In our globally expanding and closely integrating cross-borderline business activities legal disputes are one of their indispensable costs. They are inevitably of transnational nature, and should be resolved by an internationally fair and reliable system of dispute resolution. For business men they should be a costly performed and economically reasonable dispute resolution system. Resolution by litigation before state courts has been, generally speaking, one of the traditional and typical resolution systems especially for domestic business disputes. Of course, litigation is always burdensome and requires sometimes severe expenses. But as to transnational business litigation, there are different kinds of difficulties. Generally, being in its nature, it shows some national bias based on the forum jurisdiction. Civil procedures and justice systems in every respective nation accompany some kinds of burden especially to the foreign party: They have to expect many difficulties due to the unfamiliar foreign proceedings and face foreseeable as well as unexpected expenses, which would not be necessary for their domestic litigation. Sometimes they need lawyers for their own and foreign lawyers admitted in the jurisdiction for the advocates of the foreign litigation. Obstacles of litigation in foreign courts should be avoided, as far as possible, for reasonable business activities. Risks and other potential difficulties with foreign litigation should be calculated in advance and minimized. By well established contractual relationships future disputes could be minimized. For avoiding such difficulties or future uncertainties, reasonable business men