Arbitration-FS

Question 1

What is arbitration in relation to litigation?

Answer 1

It is an alternative dispute resolution mechanism to litigation.

Question 2

How does the forum of arbitration differ from litigation in terms of publicity?

Answer 2

Arbitration is a private forum, whereas litigation is generally held in open court.

Question 3

What is the practical effect of litigation being held in open court?

Answer 3

It is open to the public and reporters.

Question 4

How do parties usually commit in advance to using arbitration for certain disputes?

Answer 4

By including a contractual clause requiring disputes to be submitted to arbitration.

Question 5

Once parties have agreed in a contract to arbitrate a type of dispute, what is the effect of that agreement?

Answer 5

They are bound by that contractual commitment.

Question 6

What will often happen to court proceedings started in breach of an arbitration clause?

Answer 6

The proceedings will be stayed pending the outcome of the arbitration.

Question 7

How can a party respond if the other side starts court proceedings despite an arbitration clause?

Answer 7

By requiring the dispute to be determined by arbitration rather than by the courts.

Question 8

In terms of how proceedings begin, what is a key difference between arbitration and litigation?

Answer 8

Arbitration depends on agreement, whereas litigation can be commenced unilaterally.

Question 9

Why is arbitration attractive to a party who wants a dispute resolved quickly?

Answer 9

Because the procedure can be customised and is often much faster than court proceedings.

Question 10

How can arbitration procedure be tailored to the parties’ needs?

Answer 10

By customising procedural aspects, including those affecting speed of resolution.

Question 11

Generally, how does the speed of arbitration compare with litigation?

Answer 11

Arbitration is often faster than litigation.

Question 12

In general terms, how does arbitration compare with litigation on cost?

Answer 12

Arbitration is normally more cost-effective than litigation.

Question 13

What is one way the parties can reduce costs in arbitration?

Answer 13

By agreeing that the dispute be determined on the papers without live witness evidence.

Question 14

What is the legal status of an arbitrator’s judgment and award?

Answer 14

It is binding.

Question 15

How does the enforceability of an arbitral award compare with a court judgment?

Answer 15

An arbitral award can be enforced abroad, not just domestically.

Question 16

Why is the ability to enforce an arbitral award abroad particularly useful against some opponents?

Answer 16

Because the opponent may be a multinational with assets overseas.

Question 17

How is the arbitrator typically appointed in arbitration?

Answer 17

By agreement between the parties.

Question 18

What is the main advantage of the parties appointing the arbitrator?

Answer 18

They can select someone with appropriate expertise.

Question 19

What is a key difference between arbitration and litigation in choosing the decision-maker?

Answer 19

In arbitration the parties choose the arbitrator; in litigation they do not choose the judge.

Question 20

Why might commercial parties prefer a specialist arbitrator rather than a generalist judge?

Answer 20

Because a specialist is more likely to understand the relevant industry context.

Question 21

Which characteristic of arbitration relates to reducing the time taken to resolve a dispute?

Answer 21

Its potential for a more speedy resolution.

Question 22

Which characteristic of arbitration reflects party control over who adjudicates the dispute?

Answer 22

The ability of the parties to select their arbitrator.

Question 23

If asked why a commercial CEO might prefer arbitration to litigation, which two key characteristics should be identified?

Answer 23

The potential for a speedy resolution and the ability for the parties to select their arbitrator.