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§ 1297.13.Conditions Making Agreement International

Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 1. Application and Interpretation · Article 1. Scope of Application · Enacted 1988 · no amendments on record · Last verified July 29, 2026

In one sentenceSection 1297.13 defines when an arbitration or conciliation agreement is international, based on the parties' places of business in different states, an out-of-state place of arbitration or performance, or an express or actual connection to commercial interests in more than one state.

Full Text of § 1297.13

Text sizeJump to: (a) (b) (c) (d)

An arbitration or conciliation agreement is international if any of the following applies:
(a) The parties to an arbitration or conciliation agreement have, at the time of the conclusion of that agreement, their places of business in different states.
(b) One of the following places is situated outside the state in which the parties have their places of business:
(i) The place of arbitration or conciliation if determined in, or pursuant to, the arbitration or conciliation agreement.
(ii) Any place where a substantial part of the obligations of the commercial relationship is to be performed.
(iii) The place with which the subject matter of the dispute is most closely connected.
(c) The parties have expressly agreed that the subject matter of the arbitration or conciliation agreement relates to commercial interests in more than one state.
(d) The subject matter of the arbitration or conciliation agreement is otherwise related to commercial interests in more than one state.

Plain-English Summary

This is the gateway test for the whole title: unless an agreement qualifies as international under this section, this title does not apply to it, and the dispute follows the ordinary domestic arbitration statute instead. Four independent paths lead to that qualification, and meeting any one of them is enough.

The most direct path looks at the parties themselves: if they had their places of business in different states when they made the agreement, it is international. A second path looks past the parties to the transaction's geography, asking whether the arbitration's specified place, the place where a substantial part of the parties' obligations is to be performed, or the place most closely connected to the dispute's subject matter sits outside the state where the parties do business. The remaining two paths look at the substance of the dispute rather than location: an agreement is international if the parties expressly agreed its subject matter relates to commercial interests in more than one state, or if that multi-state connection exists in fact even without an express agreement about it.

Frequently Asked Questions

What makes an arbitration agreement international under this section?

Any of four things: the parties' places of business are in different states, a relevant location (the arbitration place, performance place, or place most connected to the dispute) sits outside the parties' shared state, the parties expressly agreed the subject matter relates to commercial interests in more than one state, or that multi-state connection exists regardless of any express agreement.

Is it enough for just one of these conditions to be true?

Yes. Section 1297.13 uses "any of the following," so satisfying a single listed condition qualifies the agreement as international.

What happens if none of these conditions apply?

The agreement is not international under this title, and this specialized title does not govern the arbitration.

Amendment History

Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 29, 2026. · Official source
Also known as: when is arbitration agreement international californiatest for international commercial arbitration