Final Exam
1. . How much tariff will you pay when they are imported into the U.S?
The amount of tariff that needs to be paid for the import of feathers into the United States is 20 percent; 20percent of the $2 million worth of feather will be 400,000 dollars.

2.
a. Any dispute, controversy, or claim, arising out of or relating to this contract, or the breach, termination, or invalidity thereof, shall be finally resolved by arbitration. The reason why we choose arbitration is because it’s private to the public.
b. The arbitration shall be in accordance with the rules of the American Arbitration Association, which shall administer the arbitration and act as appointing authority. In the event of any conflict between the rules and this clause, the provisions of this clause shall govern. We choose the American Arbitration because it was the most common institution.
c. If the parties have not agreed on the number of arbitrators, one arbitrator shall be appointed unless the administrator determines in its discretion that three arbitrators are appropriate because of the large size, complexity or other circumstances of the case. The number of arbitrators shall be one. The reason why we choose one arbitrator is because it’s least expensive.
1. The parties may mutually agree upon any procedure for appointing arbitrators and shall inform the administrator as to such procedure.
2. The parties may mutually designate arbitrators, with or without the assistance of the administrator. When such designations are made, the parties shall notify the administrator so that notice of the appointment can be communicated to the arbitrators, together with a copy of these Rules.
3. If within 45 days after the commencement of the arbitration, all of the parties have not mutually agreed on a procedure for appointing the arbitrator(s) or have not mutually agreed on the designation of the arbitrator(s), the administrator shall, at the written request of any party, appoint the arbitrator(s) and designate the presiding arbitrator. If all of the parties have mutually agreed upon a procedure for appointing the arbitrator(s), but all appointments have not been made within the time limits provided in that procedure, the administrator shall, at the written request of any party, perform all functions provided for in that procedure that remains to be performed.
4. In making such appointments, the administrator, after inviting consultation with the parties, shall endeavor to select suitable arbitrators. At the request of any party or on its own initiative, the administrator may appoint nationals of a country other than that of any of the parties.
5. Unless the parties have agreed otherwise no later than 45 days after the commencement of the arbitration, if the notice of arbitration names two or more claimants or two or more respondents, the administrator shall appoint all the arbitrators.
Also consider adding a clause that states that the sole arbitrator may not be from a country of any of the parties to the contract.
If there is a sole arbitrator case management shall be the responsibility of that arbitrator. The arbitrator shall be experienced in hardware, software, installation and training.
We choose one arbitrator because it’s less expensive and easier, faster to make a decision.
d. The arbitration, including the rendering of the award, shall take place in Illinois, United States. If the parties disagree as to the place of arbitration, the administrator may initially determine the place of arbitration, subject to the power of the tribunal to determine finally the place of arbitration within 60 days after its constitution.
It shall take place in Illinois because base on “doing business”, also there’s an alternative if the parties disagree with the location.
e. The language or languages to be used in the arbitration shall be English. The language shall be English because it’s the common commercial language and because we won’t need a translation.
f. The arbitrators shall interpret the contract in accordance with the substantive contract law of Mexico and Turkey. If a contract for the sale of goods then must consider whether to specifically exclude the CISG. If not excluded it becomes the substantive law of the contract, however, the CISG does not address enforceability issues, etc., therefore, still need some country's substantive law to resolve other issues that may come up.
Suggested clause - This contract will be governed by the United Nations Convention on Contracts for the International Sale of Goods and, as to matters not addressed in that Convention, by the laws of the United States.
Because statutes of limitations vary, especially when conflict of law rules interact with the choice of law clause, it is a good idea to put a statute of limitations term that apply to the contract. Because they are doing business in Turkey and Mexico.
g. Judgment upon the award of the arbitrators may be entered in any court having jurisdiction thereof. The parties acknowledge that this agreement and any award rendered pursuant to it shall be governed by the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
h. The award shall be made and shall be payable in the amount of $5,000,000 U.S dollars. The award shall include interest from the date of any breach or other violation of this contract. The arbitrators shall also fix an appropriate rate of interest from the date of the breach or other violation to the date when the award is paid in full. In no event, however, should that interest rate during such period be lower than the prime commercial lending rate announced by the Turkey bank at its principal office Turkey for ninety-day loans to responsible and substantial commercial borrowers. This clause explains the amount that’s payable to the sell the U.S and the interest rate if the amount is not paid.
I. Should any other provision of this Contract or any further agreement which may result from it be null and void by force of law, such nullity shall not affect the validity of the foregoing applicable law and arbitration provisions. j. Prompt disposal of any dispute is important to the parties. The parties agree that the resolution of this dispute shall be conducted expeditiously, to that end each party will work diligently to reach a final disposal.
Should consider limiting reasoned awards, especially when there are three arbitrators. Reasoned awards are those that require a detailed explanation of each and every issue, versus a simple statement of why something was decided. Reasoned awards take much additional time, and provide little benefit. Time costs money, therefore, limit this. k. Should either party seek a temporary restraining order, preliminary injunctive or other extraordinary relief, before the arbitrator(s) is appointed and assume their responsibilities, the court shall retain jurisdiction to act. Once the arbitrator(s) have assumed their duties then they shall assume jurisdiction over preliminary and extraordinary relief matters. (The U.S. courts have generally not allowed pre-arbitration attachment orders.) l. The parties grant the arbitrator(s) the power to issue subpoenas, under the applicable state law. (Most of the arbitration rules do not specifically grant this power to the arbitrator.)
m. The tribunal shall permit and facilitate such discovery as it shall determine is appropriate in the circumstances; taking into account the needs of the parties and the desirability of making discovery expeditious and cost-effective. The tribunal may issue orders to protect the confidentiality of proprietary information, trade secrets and other sensitive information disclosed in the discovery.
The tribunal may authorize a deposition to be taken of a witness who cannot be required by subpoena to appear before them or who is unable to attend the hearing, for use as evidence, or may authorize a deposition of an adverse witness for discovery or evidentiary purposes.