Lecture 7 examples

Question 1

Party ignores a proposal to mediate and later wins in court. Consequence?

Answer 1

Possible cost sanctions. Rule: ADR – unreasonable refusal to mediate.

Question 2

Party refuses mediation with clear reasons (high cost low prospects). Consequence?

Answer 2

Reasoned refusal of mediation → no penalty
Silence or blanket refusal → risk of cost sanctions

Question 3

Contract contains arbitration clause; party sues in court anyway. Outcome?

Answer 3

Court stays proceedings and compels arbitration. Rule: Arbitration agreement enforcement.

Question 4

Party claims entire contract is invalid due to bribery but arbitration clause exists. Who decides?

Answer 4

Arbitrator decides. Rule: Separability + Kompetenz-Kompetenz.

Question 5

Party claims arbitration clause itself was never agreed. Who decides first?

Answer 5

Tribunal decides initially; court reviews later. Rule: Kompetenz-Kompetenz.

Question 6

Same scenario in the US without delegation clause. Who decides?

Answer 6

Court decides arbitrability. Rule: US exception (First Options).

Question 7

Contract contains both court jurisdiction clause and arbitration clause; one party elects arbitration. Outcome?

Answer 7

Arbitration prevails. Rule: Fiona Trust – one-stop adjudication.

Question 8

Company sued via class action despite arbitration clause. Outcome?

Answer 8

Court compels individual arbitration. Rule: Arbitration vs class actions.

Question 9

Party argues contract illegality to avoid arbitration. Outcome?

Answer 9

Arbitrator decides legality. Rule: Separability.

Question 10

Arbitration tribunal decides it has jurisdiction and issues award. What next?

Answer 10

Court involved only if award is challenged or enforced. Rule: Court review stage.

Question 11

Party challenges arbitration award claiming lack of jurisdiction. Court role?

Answer 11

Limited review of jurisdiction only. Rule: Post-award judicial control.

Question 12

Arbitration clause attacked specifically for fraud. Process?

Answer 12

Tribunal decides first; court may later review. Rule: Kompetenz-Kompetenz.

Question 13

Mediation clause requires negotiation before arbitration. Party skips mediation. Effect?

Answer 13

Possible stay or cost consequences. Rule: ADR procedural compliance.

Question 14

Business dispute across borders with arbitration clause. Why arbitration?

Answer 14

Easier international enforcement. Rule: Commercial arbitration advantage.