JespiCo, a company incorporated in New York, and DeastoeCo, a company incorporated in England, entered into a sales agreement in England to acquire, in England, English bicycles to be sold by DeastoeCo to JespiCo and sent to New York. JespiCo refuses to make payment under the contract and alleges that DeastoeCo's products are of a "horrible" quality made using low quality materials.

JespiCo argues that the agreement provides that disputes are to be resolved by the New York courts. DeastoeCo claims that there has been a later variation of the contract and that the clause providing for New York litigation has been amended to provide for London arbitration (but making no other change to the agreement). JespiCo claims that its signature to the variation was obtained under duress.

DeastoeCo commences arbitration proceedings, for breach of contract and in defamation, in London. JespiCo indicates that it intends to initiate proceedings before the New York courts for payment of the price due under the contract.

Advise DeastoeCo as to how it can respond. Refer to both relevant legislation and case law.

2. "The doctrines of Separability and Kompetenz-Kompetenz are completely detached and independent from one another." Critically discuss this statement with reference to legislation and case law.