In the pending arbitration of National Flour v. Santiago, Partner Jorge I. Peirats and Associate Giselle López-Soler obtained a favorable ruling on behalf of a claimant that is a principal to a distribution agreement. Under the parties’ agreement, the law of Alabama, rather than Puerto Rico’s Act 75, applied. Oftentimes, distributors will invoke Act 75, even when the terms of the contract state that the law of another forum will govern, in order to benefit from the statute’s “for cause only” termination or impairment provisions. Respondent claimed that Act 75’s strong public policy and ban on the application of foreign laws ought to have invalidated the choice of law provision. The Arbitrator held that Alabama substantive law controlled.