STUDY UNIT 5- ARBITRATION

Question 1

MAJOR ADVANTAGE:

Answer 1

Major advantage of using arbitration is that the parties can control and determine the process of the adjudication to suit their needs and preferences, unlike in a court.

Question 2

WHAT IS ARBITRATION?

Answer 2

Arbitration is a process whereby the parties to the dispute enter into a formal agreement that an independent and impartial third party, the arbitrator, chosen directly or indirectly by the parties, will hear both sides of the dispute and make an award that the parties undertake through the agreement to accept as final and binding

Question 3

MEDIATION AND ARBITRATION {DIFFERENCES}

Answer 3

-in mediation, the parties use a mediator to facilitate the negotiation, whereas in arbitration the parties appoint an arbitrator to hear their dispute and make a decision that is binding between them.
-the rules of mediation are more flexible and informal than arbitration
-Mediation does not necessarily result in the resolution of the disputes, whereas the arbitrator makes a decision that determines the dispute.

Question 4

ADJUDICATION AND ARBITRATION [DIFFERNCE]:

Answer 4

-an adjudicator normally bases his decision on documentation provided to him by the parties and is not obliged to hear the parties.

Question 5

TYPES OF ARBITRATIONS:
1. CONSENSUAL ARBITRATION:

Answer 5

-is where the parties to a dispute voluntarily agree to refer their dispute to arbitration for a binding decision.

Question 6

2. STATUTORY ARBRITRATION:

Answer 6

-is where legislation obliges the parties to a dispute to refer their dispute to arbitration.

Question 7

3. COURT-DIRECTED ARBITRATION:

Answer 7

-is where a court of law orders that certain future disputes must be refer to arbitration.

Question 8

4. AD HOC ARBITRATION:

Answer 8

-id when the parties to a dispute refer their dispute to arbitration and also agree on the rules applicable during the arbitration.

Question 9

5. MULTI-PARTY ARBITRATION:

Answer 9

-more than two parties are involved in the dispute and are not aligned on two sides.

Question 10

6. INSTITUTIONAL ARBITRATION:

Answer 10

-refers to an agreement whereby the dispute is arbitrated in accordance with the rules of a dispute resolution institution

Question 11

SOURCES OF SA LAW OF ARBITRATION:

Answer 11

1. The Common Law
2. Case law
3. The Constitution
4. The Arbitration Act
5. The Recognition and Enforcement of Foreign Arbitral Awards Act