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A Saudi Arabian company contracts with a US oil and gas company to extract and refine crude oil in Saudi Arabia. The companies disagree about whether fees the Saudi Arabian company is charging the US company are valid under their contract. Their contract was signed in Saudi Arabia and says that Saudi Arabian law applies to any disputes.

1. If the US company sues the Saudi Arabian company in US federal court, what law will the court apply? Why?

2. Does the US court have jurisdiction over the dispute? Over the parties? Why or why not?

Reference no: EM132295195

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