Alternative Dispute Resolution Methods

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Questions and Answers

Which institution is primarily associated with resolving disputes related to international business transactions?

International Centre for Settlement of Investment Disputes (ICSID)

Stockholm Chamber of Commerce (SCC)

Permanent Court of Arbitration (PCA)

International Chamber of Commerce (ICC) (correct)

Which set of rules does ad hoc arbitration commonly employ?

London Court of International Arbitration Rules

International Chamber of Commerce Rules

UNCITRAL Rules (correct)

Madrid Arbitration Rules

What does the term 'expropriation' generally refer to in investment law?

A legal process to secure investments made by foreigners

A negotiation mechanism for trade disputes

A method for protecting against foreign competition

The transfer of property ownership by a state (correct)

Which of the following institutions does NOT primarily deal with investment disputes?

World Bank Signup and view all the answers

What obligation does a host state have under the principle of 'full protection and security'?

To prevent harm to investments by state organs Signup and view all the answers

What is the primary purpose of Bilateral Investment Treaties (BITs)?

To define terms for private investment between states Signup and view all the answers

What does the principle of 'Most-Favoured-Nation (MFN) Treatment' ensure?

Equal trade concessions across all trade partners Signup and view all the answers

What does 'Pacta Sunt Servanda' imply in international agreements?

Agreements must be kept and upheld Signup and view all the answers

What is the maximum amount in dispute for expedited proceedings according to LCIA after January 1, 2021?

US $3,000,000 Signup and view all the answers

Which of the following is NOT a requirement in the request for arbitration at the LCIA?

Evidence and documentation supporting the claim Signup and view all the answers

When can the court make costs decisions during arbitration proceedings?

At any time during the proceedings Signup and view all the answers

What is the default number of arbitrators appointed by LCIA if parties have not agreed otherwise?

Sole arbitrator Signup and view all the answers

How long does a respondent have to provide a response to a request for arbitration in the Corte de Arbitraje de Madrid?

15 days Signup and view all the answers

What condition must be satisfied for a third party to join a request in the pending proceeding?

No-conflict control by the court Signup and view all the answers

What must be included in the statement of defense according to LCIA proceedings?

A counterclaim Signup and view all the answers

What is the term for the fees and expenses of arbitrators as regulated in LCIA procedures?

Arbitrator fees Signup and view all the answers

Interim measures may be ordered for which of the following reasons?

To provide security for disputed amounts Signup and view all the answers

What does the LCIA registrar manage during arbitration?

Administrative and judicial work Signup and view all the answers

What is considered a basis for revoking an arbitrator's appointment according to LCIA guidelines?

Doubts about impartiality or independence Signup and view all the answers

What communication method is used for written communications in LCIA proceedings?

Email or electronic means Signup and view all the answers

What is a key feature of the UNCITRAL Expedited Arbitration Rules introduced in 2021?

The possibility of hearings being skipped if documentary evidence is sufficient. Signup and view all the answers

Which document is essential to initiate arbitration in the ICC?

A request for arbitration submitted to the Secretariat. Signup and view all the answers

Under which circumstance can an ICC tribunal reject evidence?

If the tribunal deems it unnecessary. Signup and view all the answers

What type of arbitration clause is considered pathological?

A clause that lacks essential elements. Signup and view all the answers

What is a fundamental aspect of the UNCITRAL Rules on Transparency for Investor-State Arbitration?

Public disclosure of essential non-confidential documents. Signup and view all the answers

Which of the following is NOT a type of evidence recognized in arbitration?

Speculative evidence. Signup and view all the answers

What is the default number of arbitrators if parties do not agree otherwise in ICC arbitration?

Three arbitrators. Signup and view all the answers

What governs the appointment of arbitrators under the UNCITRAL rules?

Agreement among the parties or consultation with the appointing authority. Signup and view all the answers

Which of the following accurately represents the role of experts in arbitration?

Experts are required to remain impartial and can assist with technical matters. Signup and view all the answers

Which scenario allows for the reopening of hearings before an arbitration award is finalized?

It is necessary due to new evidence emerging. Signup and view all the answers

What does the principle of immediacy refer to in arbitration?

The tribunal should see evidence directly related to the case. Signup and view all the answers

What is the purpose of an interim measure in arbitration?

To provide immediate relief before the final award. Signup and view all the answers

What must a request for arbitration include in ICC procedures?

Contact details and the parties involved along with dispute descriptions. Signup and view all the answers

What is one of the primary functions of the ICC International Court of Arbitration?

To provide administrative support and assign arbitral tribunals. Signup and view all the answers

Study Notes

ADR (Alternative Dispute Resolution)

ADR is an alternative to traditional litigation, reducing costs and time.
Based on effectiveness, legal certainty, and proportionality.
Voluntary participation from parties.

ADR Methods

Hererocomposition: A third party makes a binding decision.
Arbitration: A neutral arbitrator makes a binding decision. It is private and confidential. Parties choose the arbitrator & rules.
Autocomposition: Parties reach a solution on their own. A third party can assist, but their decision isn't binding.
Negotiation: Parties discuss to reach an agreement.
Mediation: A neutral party facilitates the discussion.
Conciliation: A neutral party guides the discussion and suggests solutions.

Dispute Components in Negotiation

Problem: The core issue.
Positions: The initial demands.
Interests: The underlying needs behind positions.
Possible agreement: Identifying shared interests and risks to find a solution.
General elements in negotiation:
Motivation and needs of parties
Legitimacy of the process
Conflict management (communication)
Alternatives (BATNA)
Commitments from both sides

BATNA (Best Alternative To a Negotiated Agreement)

Best alternative if negotiations fail.
Provides leverage and sets a reservation point, minimum acceptable outcome.
ZOPA (Zone of Possible Agreement): The range where both parties' acceptable outcomes overlap.

Negotiation Types

Distributive: Competitive, win-lose.
Integrative: Collaborative, win-win.

Negotiation Steps (Harvard Law School)

Clarify needs and positions
Assess BATNA and reservation points
Focus on details to avoid misunderstandings

Traits of a Good Negotiator

Charisma, patience, honesty, good listening, persuasive, assertive, and problem-solving skills.

Common Negotiation Mistakes

Poor planning, accepting bad deals, competing over collaborating, and unethical behavior.

Conciliation vs Mediation

Conciliator: plays an active role, suggesting solutions.
Mediator: guides the discussion; parties reach solutions independently.

Conciliation Regulation

Spanish Act (15/2015), Articles 139-148. (Specific details not required)
Court procedure: Request filed at courthouse. Handled by a district judge or court secretary.

Mediation Process

Request for initiation: Both parties agree to mediate.
Briefings: Exchange of information.
Sessions: Proceedings of the mediation.
Conclusion: Agreement reached and enforced.

Mediation Agreement (Enforceability)

Can cover all or part of the issue.
Signed by all parties and mediator.
Copies are kept by each party and mediator.
To be enforceable, parties can legalise the agreement with a Notary Public.

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Description

This quiz explores the various methods of Alternative Dispute Resolution (ADR), including negotiation, mediation, arbitration, and more. Discover how these methods provide effective solutions while reducing the costs and time associated with traditional litigation. Test your understanding of key concepts and definitions in ADR.