A French and a British company are drafting a contract for the delivery of telecommunications equipment. The following arbitration clause is in the draft contract: All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.

Answer the following questions giving reasons for your answers:

A) Assuming the contract does not have a choice of law provision what law will govern this sales contract?

B) What do you think should be added to the arbitration clause (if anything) and why?

C) Assume that you work for the British corporation and that your boss says "ACC is a French body. Do we really want a French body to decide the dispute? That may go against our interests we should not accept this arbitration clause." What do you say in reply to this remark?

D) Based on your international sales law knowledge obtained in this class, how would you comment on the effectiveness of international sales Law system? Anything you would like to suggest for the system to improve?