Arbitration Flashcards
(9 cards)
Under the Arbitration Act 1996, what is the general duty of the arbitrator under section 33?
A. To act in the best interests of the respondent
B. To maximise compensation for the claimant
C. To ensure court rules are followed
D. To act fairly and impartially, giving each party the opportunity to present their case and avoiding unnecessary delay or expense
D. To act fairly and impartially, giving each party the opportunity to present their case and avoiding unnecessary delay or expense
Explanation:
Section 33 sets out the arbitrator’s duty to ensure a fair process that is not delayed or overly expensive. This is a mandatory requirement under the Arbitration Act.
Parties to a commercial contract included a clause agreeing to resolve any disputes by arbitration under English law. One party later issued a court claim instead. What should the other party do first to enforce the arbitration agreement?
A. File a defence denying the claim
B. Apply to strike out the claim as vexatious
C. File an acknowledgment of service and apply for a stay under section 9 of the Arbitration Act 1996
D. Serve a counterclaim in court
C. File an acknowledgment of service and apply for a stay under section 9 of the Arbitration Act 1996
Explanation:
To avoid submitting to the court’s jurisdiction, the party must acknowledge service (contesting jurisdiction) and promptly apply for a stay under section 9 AA 1996 to enforce the arbitration clause.
Which of the following best describes the impact of choosing England and Wales as the “seat” of arbitration?
A. It determines the nationality of the arbitrator
B. It dictates the physical location of all hearings
C. It decides the legal framework and procedural law governing the arbitration
D. It defines the enforcement country of the award
C. It decides the legal framework and procedural law governing the arbitration
Explanation:
The “seat” of arbitration determines the curial law—i.e., the legal rules governing the arbitration process. It is not the same as the physical venue of the hearing.
What is the effect of an arbitration award issued under the Arbitration Act 1996?
A. It is advisory and not legally enforceable
B. It is binding and can only be appealed in the Supreme Court
C. It is final and binding, subject to limited challenges under the Act
D. It requires confirmation by the Court of Appeal to be enforced
C. It is final and binding, subject to limited challenges under the Act
Explanation:
Arbitration awards are binding and enforceable. Challenges are limited to jurisdictional issues (s.67), serious irregularity (s.68), or appeals on law (s.69, if not excluded).
A claimant applies to enforce an English arbitration award in the High Court. What is the quickest way to do so?
A. Bring a new civil claim for breach of contract
B. Apply under section 66 of the Arbitration Act 1996 for leave to enforce as a judgment
C. Start fresh arbitration proceedings
D. Seek enforcement through the New York Convention
B. Apply under section 66 of the Arbitration Act 1996 for leave to enforce as a judgment
Explanation:
Section 66 allows a successful party to convert an arbitral award into a court judgment, enabling enforcement like any court order.
A contract includes an arbitration clause. It also states that one party will pay all arbitration costs, regardless of outcome. Is this valid?
A. Yes, if agreed in writing
B. Yes, as long as both parties had legal advice
C. No, such clauses are unenforceable under section 60 unless agreed after the dispute arises
D. No, unless the arbitration takes place outside the UK
C. No, such clauses are unenforceable under section 60 unless agreed after the dispute arises
Explanation:
Section 60 (mandatory) renders pre-dispute cost clauses invalid unless they were made after the dispute began.
Which of the following would not typically be a reason the court refuses to stay litigation under section 9 of the Arbitration Act?
A. The arbitration agreement is null and void
B. The arbitration agreement is inoperative
C. The dispute falls outside the scope of the arbitration clause
D. The arbitration is more expensive than litigation
D. The arbitration is more expensive than litigation
Explanation:
Expense is not a valid reason for the court to refuse a stay. The stay can only be denied if the arbitration agreement is null, void, inoperative, or incapable of performance.
A tribunal issues a decision on liability in favour of the claimant. The respondent believes the tribunal applied the law incorrectly. Which of the following is true?
A. There is an automatic right of appeal
B. The award can be challenged under section 68
C. The award can only be appealed under section 69 if not excluded by agreement
D. The parties must request a retrial by the tribunal
C. The award can only be appealed under section 69 if not excluded by agreement
Explanation:
Appeals on a point of law are allowed under s.69 but may be excluded by agreement. There is no automatic right of appeal.
Two parties included a clause in their contract agreeing to arbitrate disputes. After a disagreement, one party files a court claim. What is the correct procedural step for the other party under CPR 62.8?
A. Acknowledge service and apply for a stay of proceedings under section 9 of the Arbitration Act 1996
B. File a defence denying liability and await allocation
C. Submit a counterclaim asserting the arbitration agreement
D. Ignore the proceedings, as arbitration agreements override court jurisdiction
A. Acknowledge service and apply for a stay of proceedings under section 9 of the Arbitration Act 1996
Explanation:
The proper response is to acknowledge service (to prevent default judgment) and promptly apply under CPR 62.8 and section 9 of the Act for a stay. Failing to do so or taking other steps may waive the right to arbitrate.
