On international arbitration, choice of substantive law, and the CISG: a case law study

Abstract

This article analyses past arbitral decisions concerning disputes related to the international sale of goods. It also explores when and how arbitrators should apply the CISG as the substantive law to resolve the merits of these disputes. This article takes into account three different scenarios in determining the applicable substantive law: (i) when parties choose the applicable substantive law; (ii) when there is no choice of law by the parties, and the arbitrators apply the indirect method; and (iii) when there is no choice of law by the parties, the arbitrators apply the direct method. In a nutshell, it is our submission that arbitrators’ should respect the laws chosen by the parties and, if the CISG applies by virtue of this choice, then arbitrators should not circumvent the use of the CISG.