Scherk v. Alberto-Culver

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In Scherk v. Alberto-Culver Co., the U.S. Supreme Court enforced an arbitration provision to an international contract that required the parties to submit to a particular jurisdiction for the arbitration. Justice Potter Stewart wrote for the Court:

An agreement to arbitrate before a specified tribunal is, in effect, a specialized kind of forum-selection clause that posits not only the situs of suit but also the procedure to be used in resolving the dispute. The invalidation of such an agreement in the case before us would not only allow the respondent to repudiate its solemn promise but would, as well, reflect a "parochial concept that all disputes must be resolved under our laws and in our courts. ... We cannot have trade and commerce in world markets and international waters exclusively on our terms, governed by our laws, and resolved in our courts."

Scherk v. Alberto-Culver Co., 417 U.S. 506, 519, 94 S. Ct. 2449, 2457 (1974) (quoting The Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 9).