The New Jersey Senate has passed Senate Republican Leader Tom Kean’s bipartisan bill to simplify the international arbitration process for businesses that choose to set up shop in New Jersey.
Sen. Tom Kean’s bill would streamline the international arbitration process, encouraging international businesses to set up shop in New Jersey. (SenateNJ)
“Companies that engage in global trade are searching for states with laws that allow them to pursue simpler, less expensive ways to resolve international disputes,” Senator Kean (R-Union) said. “Right now, only a handful of U.S. states have laws that facilitate a streamlined arbitration process. Enacting this law will establish New Jersey as a premier destination for international businesses and corporations who have the capacity to create thousands of in-state jobs.”
Senator Kean’s “New Jersey International Arbitration, Mediation and Conciliation Act,” (S-602) would establish international dispute resolution centers at nonprofit organizations in New Jersey.
Arbitration has become the preferred mechanism for solving international disputes because it is generally less expensive than litigation and more enforceable than court judgements. However, without the statutory framework and aid of dispute resolution centers established under Sen. Kean’s bill, international arbitration can be a lengthy and complex process.
Under Sen. Kean’s S-602, New Jersey’s international arbitration centers would facilitate the resolution of international business, trade, commercial, and other disputes between persons by means of arbitration, conciliation, mediation, or other means of alternatives to litigation. Currently, only nine states have passed similar legislation.
“This is exactly the kind of legislation to make New Jersey more hospitable to the business community,” Senator Kean said. “We need to develop policies that promote economic growth and give businesses a reason to come here. I am confident that this legislation will bring international businesses into the fold and transform New Jersey into a global market hot spot.”
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