<P> The lex mercatoria was originally a body of rules and principles laid down by merchants to regulate their dealings . It consisted of rules and customs common to merchants and traders in Europe, with some local variation . It originated from the need for quick and effective jurisdiction, administered by specialised courts . The guiding spirit of the merchant law was that it ought to derive from commercial practice, respond to the needs of the merchants, and be comprehensible and acceptable to the merchants who submitted to it . International commercial law today owes some of its fundamental principles to the lex mercatoria . This includes choice of arbitration institutions, procedures, applicable law and arbitrators, and the goal to reflect customs, usage and good practice among the parties . </P> <P> Goods and services flowed freely during the medieval merchant law, thus generating more wealth for all involved . It is debated whether the law was uniform in nature, was spontaneous as a method of dispute resolution, or applied equally to everyone who subordinated to it . The lex mercatoria was also a means for local communities to protect their own markets . Local kings or lords extracted taxes and set trade restrictions . In 1303 Edward I issued the Carta Mercatoria, a charter to foreign merchants in England, which guaranteed them freedom to trade, with certain protections and exemption under the law . Although the charter was revoked by Edward II, due to complaints by English merchants, foreign merchants retained most of their rights in practice, but these would vary widely with the march of time, events and changes to state policy . </P> <P> The lex mercatoria was the product of customs and practices among traders, and could be enforced through the local courts . However, the merchants needed to solve their disputes rapidly, sometimes on the hour, with the least costs and by the most efficient means . Public courts did not provide this . A trial before the courts would delay their business, and that meant losing money . The lex mercatoria provided quick and effective justice . This was possible through informal proceedings, with liberal procedural rules . The lex mercatoria rendered proportionate judgements over the merchants' disputes, in light of "fair price", good commerce, and equity . </P> <P> Judges were chosen according to their commercial background and practical knowledge . Their reputation rested upon their perceived expertise in merchant trade and their fair - mindedness . Gradually, a professional judiciary developed through the merchant judges . Their skills and reputation would however still rely upon practical knowledge of merchant practice . These characteristics serve as important measures in the appointment of international commercial arbitrators today . </P>

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