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1 International Legal Challenges Discussion Name Course Name Course Number Professor Date

2 Question 2. In a second case, a Colossal subsidiary in Bartan, an Asian country, wants the company to enter into a sales contract with a subsidiary there, using the UN Convention on Contracts for the International Sale of Goods (CISG) as the controlling law. The VP needs to know the ramifications of this option and decide whether it is a good idea. The UN Convention on Contracts for the International Sale of Goods (CISG) is an international policy that governs the formation of goods contracts sales which helps reduce legal barriers to international trade ( Lookofsky, 2022) . CISG provides a standard set of rules that can be used to form sales contracts in UN member countries. An advantage that CISG will benefit Colossal subsidiary in entering an international sales contract is the uniformity of how the contracts are developed, making it easy to negotiate and execute the contract ( Lookofsky, 2022) . The standard rules of creating a contract help avoid disputes on which country's laws to use in developing the contract, making the contract process difficult. Another advantage is that CISG is designed to be fair for both parties, ensuring the creation of balanced sales contracts that meet both parties' requirements ( Lookofsky, 2022) . This prevents an unequal position with a foreign partner where one party may take advantage of the inferior party, making the agreement unfair. Another advantage that Colossal may benefit from if they use CISG to create an international sales contract is the ability to defend themselves in case of a dispute or breach of contract in a foreign country ( Lookofsky, 2022) . Because the law governing the sales contract formation is the same in both countries, the company can effectively defend itself due to the knowledge of the law in the foreign country. However, this can be a disadvantage because judges in different countries may interpret the law differently, affecting the company's chances of winning a case in a foreign country ( Lookofsky, 2022) .

3 A disadvantage is that the interpretation of CISG in multiple languages may change the meaning of the law creating a dispute between the contracting parties from different countries due to the various understanding of the interpreted text ( Lookofsky, 2022) . Another disadvantage is that it is only suitable for sales contracts and may only work for some sales or industries. CISG may not provide in detail some of the requirements that a sales contract needs making it inadequate in creating sales contracts in some situations ( Lookofsky, 2022) . Using CISG to create a sales contract in Bartan will help save costs from resolving contract disputes, have a standard process of developing the agreement and promote fair contractual practices helping to make the contractual process smooth. However, Colossal should renegotiate some provisions of the contract to ensure any concerns not adequately represented by CISG are addressed for effective contract development. Question 3. Colossal management also needs to know whether arbitration is a good idea for a dispute resolution provision for both domestic and international contracts and why. Arbitration is a non-judicial process of solving disputes where a neutral third party decides the fate of the disputing parties outside the court ( Coyle & Drahozal, 2019) . In a contract that uses arbitration to solve conflicts, it must be described in detail what the arbitration process will entail, who the third parties are, the location of the arbitration, and the number of arbitrators. Using arbitration to resolve domestic and international contract disputes is a good idea because arbitration rewards can be enforceable in foreign countries. Under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, member nations enforce arbitral awards issued in foreign countries ( Coyle & Drahozal, 2019) . Another reason for using arbitration is its confidentiality, which makes it easier to keep disputes private, ensuring limited public scrutiny, which might influence the final

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4 decisions by the arbitrators ( Coyle & Drahozal, 2019) . The arbitration process is not fixed; where the process must follow a set of rules to ensure a successful and fair arbitration process. The terms of the contract influence the arbitration process; hence the process is unique to different contracts and agreements, making the process more personalized and effective. The arbitration dispute process is better than a court judgment because a US court judgment may not be valid in a foreign country hence requiring arbitration because it can be enforced in foreign countries that are members of the New York Convention ( Coyle & Drahozal, 2019) . When using arbitration to solve local and international contract disputes, Colossal should ensure its contracts have an arbitration clause that is clear and fair to all parties involved. The disadvantages that Colossal may experience when using arbitration are biases of the arbitrators, limited options to appeal an arbitration decision, and inadequate transparency in the arbitration process ( Coyle & Drahozal, 2019) .

5 References Coyle, J. F., & Drahozal, C. R. (2019). An empirical study of dispute resolution clauses in international supply contracts. Vand. J. Transnat'l L. , 52 , 323. Lookofsky, J. (2022). Convention on contracts for the international sale of goods (CISG). In Convention on Contracts for the International Sale of Goods (CISG) (pp. 1-256). Wolters Kluwer.

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