Anhui, a Chinese company, contracted to sell dyed yarn to Hart, an American company. The contract contained a clause requiring arbitration of disputes before the China Council for the Promotion of International Trade in Beijing.
When a dispute arose and Hart refused to pay Anhui, it began arbitration proceedings.
Hart did not respond but sued Anhui in federal court in the United States. Hart claimed the arbitration clause was not enforceable because arbitration in Beijing would be a hardship and, even if it were not, the dispute was over the validity of the contract itself, an issue of contract law, not a payment dispute. Since that was a legal matter, it could be litigated. What resulted in federal court? [Hart Enterprises Intl. v. Anhui Provincial Import and Export, 888 F.Supp. 587, S.D. NY (1995)]