Explain Arbitration as a method of ADR (8 marks).

Question 1

What is arbitration?

Answer 1

• Voluntary submission of parties to case being dealt with by 3rd party
• The Arbitrator is chosen and independent.
• Arbitrator has experience.

Question 2

What act governs it?

Answer 2

• Arbitration Act 1996.

Question 3

When is it used?

Answer 3

• Before or at time of dispute.
• Used in business disputes like building contracts.
• Requirement to arbitrate if “Scott v Avery” clause written into agreement.
• Clauses like this found in package holidays/

Question 4

What is ABTA?

Answer 4

• Provides arbitration scheme
• Resolves disputes within 10 weeks (Thomas Cook collapse 2019)

Question 5

What is the procedure?

Answer 5

• Formal court like hearing with witnesses/evidence
• OR paper arbitration (written down facts).
• Arbitrator on same level as parties. (Lawyers involved).
• “Award” is name of decision made.
• Decision is legally binding.