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• W3123405636 abstract "ABSTRACTDynCorp International, LLC, a U.S. company, and Aramco, a Saudi-owned corporation, entered into a contract for a computer system which was to be manufactured in the U.S. and installed at Aramco's facilities in Saudi Arabia. The contract contained a of provision requiring the application of Saudi Arabian law even though the contract was entered into and significantly performed in the United States. The contract also contained an arbitration clause, requiring that any disputes be resolved using Sharia law as implemented through an arbitration panel. When a dispute over the ownership of funds arose, DynCorp attempted to bring the matter into the Texas judicial system. In its opinion in the matter (In re Aramco Servs. Co.. No. 01-09-00624-CV, 2010 Tex. App. LEXIS 2069, 2010 WL 1241525, Tex. App. Houston 1st Dist. Mar. 19, 2010), the Texas court refused to take up the matter, and effectively upheld the arbitration clause. This paper explores the increasing use and enforceability of faith-based arbitration clauses in international contracts and transactions in light of the Aramco case. The paper concludes that global finance is augmented when parties learn about other faiths (in particular, Islam) so that they can effectively negotiate and, where appropriate, adopt such clauses as a way of making use of alternative dispute resolution.JEL: K2; K12; K41KEYWORDS: Faith-Based, Alternative Dispute Resolution, Arbitration, Contracts, ShariaINTRODUCTIONArbitration is method of dispute resolution involving one or more neutral third parties who are usually agreed to by the disputing parties and whose decision is binding (Gamer & Black, 2004, p. 112).Arbitration is one of several systems of alternative dispute resolution (ADR), that is, procedures for settling dispute by means other than litigation (Gamer & Black, 2004, p. 86). Arbitration is not a judicial proceeding that necessarily originates under any particular constitution, statute, regulation, court mle or the common law, but is instead a proceeding which is intended to occur outside of the normal judicial process. By contrast, mediation is an ADR where one or more impartial persons assist the parties in reaching a settlement but do not make a binding determination (Lipsky & Seeber, 1998, p. 134).Arbitration can in some cases be called for or required by statute or other authority, but is often simply agreed to by private parties as part of their negotiated contracts and transactions. In the former case, there may be formal legal requirements that establish the conditions and parameters of such arbitration. In the latter case, arbitration is the creature of contract and the parties can decide among themselves the range of issues that will be subject to arbitration, the choice of substantive and procedural laws or rules, the extent and scope of possible relief, and any and all other aspects of the agreed-to arbitration. In the former case, arbitration is a required process that is prescribed by law; in the latter, the contracting parties waive their rights to seek redress in traditional processes of law.Arbitration is often less expensive than traditional civil judicial proceedings, because discovery can be more efficient, the use and cost of attorneys can be minimized, and the proceedings can be structured so that they are less formal and time-consuming.This paper focuses on those arbitration clauses and systems that draw from religious texts and traditions for their jurisprudence and procedures. Particular attention is given to the growing use of Sharia (Islamic law) within the jurisdictions of the United States legal system. A study of the case of In re Aramco Servs. Co. (2010) helps to illuminate the systemic tensions that can arise when Sharia-based arbitration clauses are employed within that legal system. In doing so, this paper expands on the extant literature on faithbased arbitration in the United States. …" @default.
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• W3123405636 date "2014-07-01" @default.
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• W3123405636 title "Faith-Based Arbitration Clauses as a Global Alternative to Dispute Resolution" @default.
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