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    Scherk v. Alberto-Culver Co.

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    Scherk v. Alberto-Culver Co. involved a dispute over a violation of agreements during an international business transaction. The agreements contained a forum selection clause stipulating that any disputes would be resolved through international arbitration in Paris. However, the claim was brought in an Illinois court instead. The court dismissed the case, enforcing the forum selection clause. It reasoned that in international transactions, uncertainty over applicable laws and forums can discourage business agreements, so forum selection clauses are particularly important to uphold to promote international commerce. The neutrality of arbitration was also a factor in the court's decision.

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    Scherk v. Alberto-Culver Co.

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    crlstinaaa
    2K views1 page
    Scherk v. Alberto-Culver Co. involved a dispute over a violation of agreements during an international business transaction. The agreements contained a forum selection clause stipulating that any disputes would be resolved through international arbitration in Paris. However, the claim was brought in an Illinois court instead. The court dismissed the case, enforcing the forum selection clause. It reasoned that in international transactions, uncertainty over applicable laws and forums can discourage business agreements, so forum selection clauses are particularly important to uphold to promote international commerce. The neutrality of arbitration was also a factor in the court's decision.

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    Scherk v. Alberto-Culver Co. involved a dispute over a violation of agreements during an international business transaction. The agreements contained a forum selection clause stipulating that any disputes would be resolved through international arbitration in Paris. However, the claim was brought in an Illinois court instead. The court dismissed the case, enforcing the forum selection clause. It reasoned that in international transactions, uncertainty over applicable laws and forums can discourage business agreements, so forum selection clauses are particularly important to uphold to promote international commerce. The neutrality of arbitration was also a factor in the court's decision.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    2K views1 page

    Scherk v. Alberto-Culver Co.

    Uploaded by

    crlstinaaa
    Scherk v. Alberto-Culver Co. involved a dispute over a violation of agreements during an international business transaction. The agreements contained a forum selection clause stipulating that any disputes would be resolved through international arbitration in Paris. However, the claim was brought in an Illinois court instead. The court dismissed the case, enforcing the forum selection clause. It reasoned that in international transactions, uncertainty over applicable laws and forums can discourage business agreements, so forum selection clauses are particularly important to uphold to promote international commerce. The neutrality of arbitration was also a factor in the court's decision.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    of 1

    Resolving Conflicts of Jurisdiction: Party Choice

    Case: Scherk v. Alberto-Culver Co. (1974)

    417 U.S. 506, 94 S.Ct. 2449, 41 L.Ed.2d 270

    Notes:

    · What did Scherk do that was a legal violation?


    · Forum Selection clause - Stipulated that dispute would be brought to Int'l
    arbitration Panel in Paris
    · Agreement says applying Illinois law
    · But claim was brought in Illinois

    · D filed motion to dismiss case in IL, so that proceedings could be in Paris


    ○ What does court do?
    § Forum selection clause is enforced in this case
    §
    ○ Why?
    § They are going to enforce here, even though they would be hesitant to
    do so in domestic cases
    § Int'l vs. domestic
    □ Why are domestic transactions diff from int'l transactions?
    ® Easier to apply the law. Less of disincentive for
    businesses to enter into agreements
    ◊ But in int'l, more multiple laws, etc. more
    uncertainty of what law or forum to be utilized may be a disincentive to enter
    into business agreements, so important to uphold the forum selection clauses, so
    that parties will enter into agreements more readily if they know exactly the
    forum and the law
    § Especially strong claim for enforcement, b/c it was an arbitration
    panel
    □ More neutrality, not tied to a particular govt
    □ Parties may have a role in choosing the arbitrators
    □ More incentive for parties to engage in transactions too
    § Freedom of K
    □ Also important that this was negotiated
    □ Court not so much persuaded by this, and instead goes further
    and looks at public policies, etc.

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