Arbitration

• what is arbitration?

  Arbitration is where the parties refer the dispute to a third party, who will act like a judge and give a decision on the dispute, which is called an award.
• What legislation governs private arbitration, and what does it do?

  The arbitration act 1996 provides a statutory framework for the process and grounds of appeals.
• What does section 1 of arbitration act 1996 say?

  the object of arbitration is to reach a fair resolution through an impartial third party and the parties should choose the nature of the hearing.
• Which section of which legislation states that 'the object of arbitration is to reach a fair resolution through an impartial third party and the parties should choose the nature of the hearing.' ?

  The Arbtitration Act 1996
• What does section 5 of the arbitration act 1996 say?

  It states that the parties must agree to arbitration and to abide bythe decision of the arbitrator.
• What section of which legislation states that 'the parties must agree to arbitration and to abide by the decision of the arbitrator.' ?

  Section 5 of the arbitration act 1996
• What is a scott v avery clause?

  A clause in a commercial contract that states that where there is a dispute, it will be settled by arbitration.
• Is there a framework to how the arbitration is carried out?

  No. The precise way in which the arbitration is carried out is left almost entirely to the parties’ agreement.
• Who decides the procedure for appointing an arbitrator, date, time and place of the hearing?

  The parties decide the procedure for appointing an arbitrator, and the date, time and place of the hearing.
• Who are arbitrators?

  Arbitrators may be trained lawyers or laypersons who have expertise in the particular field involved in the dispute.
• What is the Charted insitute of Arbitrators, and when would it be used?

  Chartered Institute of Arbitrators is a body of qualified arbitrators. Ifthe parties cannot agree on an Arbitrator then the Chartered Institute will allocate one.
• The actual procedure is left to the agreement of the parties – they may opt for “paper” arbitration, or they may opt, additionally, for a hearing at which they make oral submissions as well.
• What does section 58 of the arbitration act 1996 say?

  The decision of the arbitrator is binding on the parties. It can be enforced through the courts if necessary. It is usually final.
• WHat section of which legislation states that 'The decision of the arbitrator is binding on the parties. It can be enforced through the courts if necessary. It is usually final.' ?

  Section 58 of the Arbitration act 1996
• What do sections 67 through 69 of the arbitration act 1996 say?

  The decision of the Arbitrator can be challenged on a point of law.
• what sectionS of which legislation states that 'The decision of the Arbitrator can be challenged on a point of law.' ?

  Sections 67 through 69 of the Arbitration Act 1996
• What is the significance of the case of Kaneria v ECB?

  It shows how through sections 67 - 69 of the arbitration act 1996, the decision of an arbitrator can be challenged.
• What case shows how through sections 67 - 69 of the arbitration act 1996, the decision of an arbitrator can be challenged?

  KANERIA v ECB
• when is arbitration typically used?

  Arbitration is often used in collective employment related disputes.
• What are the advantages of handling a dispute through Arbitration?

  Expertise

  Privacy

  Legally binding decision

  Cheaper
• What are the disadvantages of arbitration?

  Inconsistent Decisions

  Lack of Legal Expertise

  Appeals are limited
• Why is the fact trhat an arbitrator is likely to have expertise in an area an advantage of arbitration?

  The Arbitrator is likely to have specialist knowledge on the subject beingdisputed. This makes him/her better qualified to understand the relevant issues and judge on them.
• Why is privacy an advantage of arbitration?

  the process of arbitration is held in private. The public and the media are notallowed access to the hearing or the outcome. This means that businesses avoid adverse publicity.
• Why is the fact that arbitration produces a legally binding result an advantage?

  The arbitrator's decision is final. Arbitration therefore results ina definite outcome. It will not be a waste of time. The decision can be enforced through the courts.
• Why is the fact that arbitration can result in inconsistent decisions a disadvantage of Arbitration?

  the arbitrators are not bound by rules of precedent. They do notneed to follow previous decisions. This makes the outcome unpredictable, leaving it difficult for parties to decide whether or not to pursue a dispute.
• Why is the fact that arbitrators have a lack of legal expertise a disadvantage of arbitration?

  Judges are legally qualified and have knowledge of various complex aspects of law. Arbitrators may not have this knowledge, meaning they are unable to deal with complex legal issues
• Why is the fact that appeals are limited a disadvantage of Arbitration?

  Appeals are limited, however if the parties do appeal then this increases the costand time of arbitration. Both of which it is designed to reduce
• where is it common to find a scott v avery clause?

  Building, package holiday and mobile phone contracts
• what is an arbitrator's decision called?

  The arbitrator’s decision is called an ‘award’, and is final and binding on the parties. If necessary, it can be enforced in court. An award can only be challenged if there is a serious irregularity in the proceedings or on a point of law.