NCJ Number
97000
Date Published
1983
Length
12 pages
Annotation
This article provides European and Japanese perspectives on the use of alternative dispute resolution (ADR) in transnational corporate disputes, addresses potential problems of transnational ADR, and identifies arbitration as the preferred method of international dispute resolution.
Abstract
Numerous problems with arbitration are reported; for example, because arbitration is calculated to produce a win/lose result, it is not necessarily well-suited to disputes arising in the context of long-term international business relationships. A multinational corporation's perspective on ADR is provided, and the types of disputes such corporations are likely to encounter are considered. For instance, disputes may arise concerning fiscal management or the efficacy of technology transfers. Although companies need not have a compendium for each type of dispute, with a matching method for resolution, they can nonetheless achieve benefits through some degree of categorization. Exxon's inability to implement ADR at the domestic level is reported, and two ADR examples from Exxon's international experience are discussed. Differences in the atmosphere of European arbitration and American litigation are delineated, and attention is focused on the Japanese way of handling disputes. The Japanese are said to prefer negotiation and compromise to litigation. Further, it is noted that the Japanese value relationships more than contracts in conducting business. Finally, ADR methods are described as being particularly suited to the bureaucratic structures of socialist countries.