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Part II Legal Framework: Courts, Statutes and Treaties, E The Contractual Context, 1 A Cautionary Tale about Home-Town Justice

From: Arbitration of International Business Disputes: Studies in Law and Practice (2nd Edition)

William W. Park

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 13 April 2024

Not long ago, a multinational enterprise with headquarters in Boston needed two cargo vessels to transport ore from its South American mines to its North American production facilities. A shipyard in a developing country with good harbors and cheap labor seemed the right place to build the vessels. Extended negotiations led to a contract between the shipyard and the multinational’s Liberian shipping subsidiary, which was established to purchase and operate the vessels in a tax-efficient manner. The multinational itself guaranteed its subsidiary’s obligations....
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