How the court will enforce the award


Problem:

Rima Fashion Inc. purchases clothing from Oriental Fashions in Hong Kong. A dispute arises between Rima and Oriental over a large shipment of clothing for which Oriental claims Rima refused to pay. Oriental threatens to sue Rima for $500,000. The contract between the two companies states that all disputes must be submitted to arbitration, so Rima and Oriental have an arbitration proceeding in Hong Kong. The arbitration decision is in favor of Oriental, so Oriental seeks payment from Rima. If Oriental asks a United States court to enforce the arbitration award, the court will enforce the award:

a. Under no circumstances, because it is a foreigh award.

b. If it is enforceable under Hong Kong law, the arbitral tribunal had proper jurisdiction, the defendant was given notice of the arbitration and an opportunity to be heard, and enforcement of the award is not faudulent or contrary to public policy.

c. As long as the arbitration award is properly filed and served on Rima.

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