Juridica Investments, Ltd. (JIL), entered into a financing contract with S & T Oil Equipment & Machinery, Ltd., a U. S. company. The contract included an arbitration provision stating that any disputes would be arbitrated “in St. Peter Port, Guernsey, Channel Islands.”

THE GLOBAL DIMENSION

What would happen if Congress did not require a reasonable relation-ship with a foreign state for arbitration agreements between U. S. citizens doing business abroad? Would there be more or fewer agreements to arbitrate disputes abroad?

THE TECHNOLOGICAL DIMENSION

How might these parties have avoided the time and expense of settling their dispute in a foreign jurisdiction?