Explain Arbitration As A Method Of ADR Flashcards
What is arbitration?
Arbitration is the voluntary submission of the parties to the dispute to an independent 3rd party, the Arbitrator, chosen by the parties.
What governs arbitration in the UK?
Arbitration is governed by the Arbitration Act 1996.
When can decisions to arbitrate be made?
Decisions to arbitrate can be made before or at the time of a dispute.
In what types of disputes is arbitration often used?
Arbitration is often used in business disputes, such as those involving building contracts.
What is a ‘Scott v Avery’ clause?
‘Scott v Avery’ clauses require arbitration in written agreements made before a dispute arises.
What is an example of an arbitration scheme?
ABTA provides an arbitration scheme to resolve disputes within 10 weeks between travel companies and their customers.
Example: During the collapse of Thomas Cook in 2019.
Who provides trained arbitrators?
The Institute of Arbitrators provides trained arbitrators with expertise in the relevant area.
What do the parties agree upon in arbitration?
The parties agree on the Arbitrator, the date and venue, and the procedure to be used.
What are the types of procedures in arbitration?
Procedures can be a formal court-like hearing or a ‘paper arbitration’ where arguments are submitted in writing.
How does the position of the Arbitrator differ from that in a civil court?
The Arbitrator sits on the same level as the parties, unlike in a civil court.
Is legal representation common in arbitration?
Yes, legal representation is very common in arbitration.
What is the decision made by the Arbitrator called?
The decision made by the Arbitrator is called an ‘award’.
Is the decision of the Arbitrator legally binding?
Yes, the decision is legally binding under the Arbitration Act 1996.
Under what circumstances can an arbitration decision be appealed?
An arbitration decision can only be appealed in exceptional circumstances, such as a serious irregularity.
