Utah businesses entering international deals face several major categories of legal exposure. Unlike domestic disputes, cross-border conflicts involve questions about which country’s laws apply, which court gets to hear the case, and whether a foreign judgment can be enforced in Utah.

These issues become even more complex when regulatory compliance, export rules, and international insurance coverage are involved. This guide covers the foundational protections every Utah company should have in place when working with overseas vendors, manufacturers, contractors, investors, or customers.

One of the most effective ways for Utah companies to control foreign litigation risk is through carefully drafted contract language.

Step-by-step: Strengthening your contracts

First, include a clear forum selection clause that specifies where disputes must be resolved. A Utah-based forum clause can help prevent a partner from dragging your business into a foreign court.

Second, add a choice-of-law clause that decides which country’s laws apply to the dispute. Many Utah companies choose Utah law because it creates predictability and consistency with their existing counsel.

Third, consider international arbitration. Arbitration through organizations like the ICC or AAA provides a neutral forum and can avoid navigating an unfamiliar foreign court system.

Finally, clarify language and translation. If the agreement exists in multiple languages, specify which version controls to reduce arguments later.

Checklist: Contract protections to review

• Is the dispute forum clearly identified and realistic for your business?
• Is the governing law clearly stated and understood by both sides?
• Does the agreement include arbitration options for cross-border disputes?
• Are translation and language issues addressed in the text?
• Have both sides formally agreed in writing to these jurisdictional terms?

Foreign judgments do not automatically apply in Utah. Courts must first decide whether the judgment is recognizable and enforceable. Utah often applies a version of the Uniform Foreign-Country Money Judgments Recognition Act to decide when a foreign money judgment can be honored here.

A Utah court may refuse to enforce a foreign judgment if the foreign court lacked jurisdiction, the process was unfair, or the judgment violates Utah public policy. Businesses dealing overseas should understand that winning a case abroad does not always guarantee enforceability back home.

Before entering international relationships, Utah companies should perform legal and business due diligence on prospective partners, suppliers, and distributors.

Step-by-step: Screening foreign partners

Start with a basic corporate background check: who owns the company, how stable it is financially, and whether it is properly registered. Look for any history of fraud, sanctions, or serious lawsuits.

Next, review local regulations in the partner’s country. Some jurisdictions require registration, licensing, or specific contract structures before you can legally operate.

Finally, document everything in writing. Avoid handshake deals. Use written contracts, keep copies of invoices and emails, and store compliance records in an organized system.

Checklist: Due diligence questions

• Did you run a background check on the foreign business and its owners?
• Are you satisfied with the company’s financial stability and reputation?
• Do you understand local regulations that apply to your deal?
• Are all agreements documented in clear, written contracts?
• Are you compliant with U.S. anti-corruption and sanctions laws?

Insurance and risk-transfer tools can significantly reduce the financial impact of foreign disputes on a Utah business.

Some policies address political risk, such as expropriation, currency controls, and government instability. Others focus on international liability coverage for product claims, contract disputes, or injuries abroad.

Emerging litigation risk-transfer products and funding arrangements can help cover counsel fees or shift some of the financial exposure in high-stakes matters. These tools are often tailored to larger or higher-risk deals.

Checklist: Insurance and risk-transfer review

• Do your existing policies include cross-border coverage and defense costs?
• Have you identified exclusions that might affect foreign claims?
• Have you discussed political risk or contract frustration insurance with your broker?
• Do you have a process for documenting losses and costs if a dispute arises?

Some Utah companies face additional risk under federal export-control rules, especially if they handle sensitive technology, software, or data. Violations can lead to severe penalties and federal investigations.

Practical compliance steps often include employee training, secure handling of restricted information, and contract language that requires distributors to follow U.S. export laws.

Checklist: Internal compliance health-check

• Have you reviewed whether your products or services require export licenses?
• Are employees trained on export controls, sanctions, and anti-corruption rules?
• Are foreign transfers of restricted technology and data tracked and documented?
• Do your distributor and reseller agreements reinforce U.S. compliance requirements?