AB-Inbev, which produces various beer brands (Corona, Beck, Stella, Leff, Budweiser and more), canceled after 30 years a distribution agreement with an Israeli distributor and contended that all legal proceedings between it and the distributor are required to take place in an ICC arbitration under Swiss law because in each purchase order is done online and distributors are required to give their consent and approval to the terms of the order, which also include the arbitration clause.
The Supreme Court held that the proceedings should be stayed due to the arbitration clause. An Israeli Court will honor a contractual arbitration clause for arbitration outside of Israel. Although no agreement was signed, making orders for years and actively agreeing to the terms of the order and as part of that to the arbitration clause indicates the agreement of the parties. Here, not only upon the order it is required to confirm the arbitration clause, but upon the order a "pop-up window" was displayed in which it was explicitly and clearly recorded that the distributor approves, inter alia, the terms of the clause in the general conditions according to which all disputes between the parties will be referred to an arbitration procedure to be held in Switzerland. Thus, it is not disputed that the parties did not sign a single comprehensive document regulating their contractual relationship, however the distributor knew about the arbitration clause and confirmed it at every order and time and therefore the arbitration clause applies to the relationship between the parties as a whole and therefore the proceedings in Israel must be stayed in order for the case to be managed in ICC arbitration under Swiss law.