Question
Based on the information below, please draft dispute resolution provisions and governing law provision that you think would best suit Elan's needs. The dispute resolution
Based on the information below, please draft dispute resolution provisions and governing law provision that you think would best suit Elan's needs. The dispute resolution provisions should require the parties, first, to submit their dispute to a non-binding resolution method and then, if the non-binding method does not produce a settlement, to a binding means of resolving the dispute. Please briefly explain the reasons behind your choice of dispute resolution provision:
Your client, Elan Fashion, Inc. ("Elan"), a Los Angeles, California-based company, provides, manufactures, and sells jewelry in the western United States. Elan is planning to enter into a long-term gemstone supply contract with Amahle Trading Co. Ltd. ("Amahle"), a company headquartered in Johannesburg, South Africa, that trades in precious and semi-precious gemstones.
Amahle has a good international reputation, but Elan is wary of possible controversies with the South African company. As in any international deal, problems can arise with shipping, supply chains, and payments. Moreover, in the African gem trade, there are some specific concerns. Disputes could arise about the authenticity of the stones or about whether they were sourced from conflict zones or mined with the use of child or convict labor. For all of these reasons, Elan has asked that its contract with Amahle contains a set of dispute resolution provisions ensuring that disputes will be resolved in a manner that is efficient, internationally effective, and minimally disruptive of the relationship between Elan and Amahle. In addition, Elan does not want the contract to be subject to South African law. South Africa is not a party to the United Nations Convention on Contracts for the International Sale of Goods.
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