Recognizing legal issue and applicable rule

Reference no: EM1331319

a) A German company sold steel to a United States company, pursuant to a series of correspondence between them. The United States company had issued a purchase order, printed on a standard form, for galvanized steel to Germany. The German company responded by sending another form labeled "Sales Contract" as written confirmation of the purchase order. The confirmation contained a provision stating that "all disputes arising out of the contract shall be settled by arbitration in California." After delivery, a dispute arose over payments to be made by the United States company. The German company sought to enforce the arbitration provision. What applicable rule and fact(s) should apply in this case for the court to resolve this dispute?

b) The German government under various programs, provided low-interest loans and investment support, in the form of cash grants and tax credits to German glass manufacturers. The benefits were designed to offset the disadvantages that would discourage companies from moving into Eastern Europe. The recipients of the benefits sold the preponderance of their glass in Germany. The amount of benefits was less than 2 percent of the value of the glass products sold to the United States. United States glass companies are losing sales, however, to German companies. What applicable rule and fact(s) should apply in this case? How should proper authority apply the rule of law to this case?

Reference no: EM1331319

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