A buyer in British Columbia purchases equipment from a manufacturer in China. The contract between the parties stipulates that any dispute between the parties arising out of the transaction will be decided by an arbitrator in Switzerland. The buyer is not satisfied with the quality of the equipment and brings the dispute before an arbitrator in Switzerland. What law will the arbitrator apply to resolve the dispute?

Question

Quizplus · Accepted Answer

The contract between the parties explicitly states that any dispute arising out of the transaction will be decided by an arbitrator in Switzerland. It also implies that the parties agree to the law that the arbitrator will apply to resolve the dispute. Therefore, the arbitrator will apply the law that the parties agree should apply, which is E in this case.

A Buyer in British Columbia Purchases Equipment from a Manufacturer