Settling disputes

        Cowboy, Inc., an American corporation that produces cowboy hats contract with a manufacturing plant in France, Beret, Inc. The contract provides that Beret, Inc. will produce the cowboy hats in France to be distributed back in the United States by Cowboy, Inc. The contract does not provide which country’s law will apply if a dispute arises between Cowboy and Beret. Eventually, Cowboy discovers that Beret is not producing the hats under the specifications agreed upon in the contract. Which will American or French law be used in settling the dispute? Why?