The arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute.
§ 1297.281.Dispute Decided By Tribunal In Accordance With Rules of Law Designated By Parties
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 6. Making of Arbitral Award and Termination of Proceedings · Article 1. Rules Applicable to Substance of Dispute · Enacted 1988 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.281 requires the arbitral tribunal to decide the dispute according to whatever rules of law the parties themselves designated as governing the substance of their case.
Full Text of § 1297.281
Plain-English Summary
Party autonomy runs through every part of international arbitration, and this section applies it to the single most consequential choice in the case: what law decides who wins. The arbitral tribunal must decide the dispute in accordance with the rules of law the parties designated as applicable to the substance of the dispute.
That designation typically comes from a choice-of-law clause in the parties' underlying contract, though it can be made separately as well. Whatever the parties picked, the tribunal is bound to apply it, rather than substituting its own view of which law should govern. Only when the parties haven't made that choice does the tribunal get to pick the governing law itself, under Section 1297.283.
Frequently Asked Questions
What law does the tribunal apply to decide the merits of an international arbitration?
The rules of law the parties themselves designated as applicable to the substance of the dispute.
Where does that designation usually come from?
Most often from a choice-of-law clause the parties included in their contract, though the designation can also come from a separate agreement.
What if the parties never designated a governing law?
Section 1297.283 directs the tribunal to apply the rules of law it considers appropriate given the circumstances of the dispute.
Does designating the law of a particular state also import that state's conflict-of-laws rules?
No. Section 1297.282 construes a designation of a state's law as referring to its substantive law, not its conflict-of-laws rules, unless the parties expressed otherwise.
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: choice of law international arbitration californiagoverning law designated by parties arbitration