Preliminary Award in ICC Case No. 4132

X Y.B. Comm. Arb. 49 (1985)

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Preliminary Award in ICC Case No. 4132

Panel of Arbitration
X Y.B. Comm. Arb. 49 (1985)

Facts

An Italian supplier (plaintiff) entered a supply agreement with a South Korean buyer (defendant). The agreement permitted the South Korean buyer to use certain technical knowledge so that the buyer could exclusively manufacture a product in South Korea. The supply agreement provided for arbitration under the International Chamber of Commerce (ICC), but the supply agreement did not contain a governing-law clause. The South Korean buyer then purchased raw materials from the Italian supplier required for production. The Italian supplier subsequently alleged the South Korean buyer breached the supply agreement and moved for arbitration under the arbitration agreement. In response, the South Korean buyer argued that the panel of arbitration should determine the law applicable to the contract using the center-of-gravity test. In particular, the South Korean buyer invoked certain statutory protections under Korean antitrust statutes, unfair-competition statutes, and price-control statutes. The Korean buyer also invoked Article 85 of the Treaty of Rome, the relevant statutes of European Union (EU) competition law, in its response.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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