Arbitration Overview
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Questions and Answers

What is the primary basis for arbitration?

  • Legislative mandate
  • Party agreement (correct)
  • Public decree
  • Court order
  • Arbitration is generally more developed in Australia than in Singapore.

    False (B)

    What type of arbitration allows a foreign investor to bring a claim against a country?

    investor-state arbitration

    The New York Convention, signed in 1958, is considered a foundational instrument of ______ arbitration.

    <p>international</p> Signup and view all the answers

    According to the content, which sector is NOT a common user of arbitration?

    <p>Retail (B)</p> Signup and view all the answers

    A party can bring an arbitration claim against an entity even if it's not party to an arbitration agreement.

    <p>False (B)</p> Signup and view all the answers

    What important consideration, mentioned in the content, must be ensured by arbitrators when conducting the proceedings?

    <p>procedural fairness</p> Signup and view all the answers

    Which of the following is NOT a typical characteristic of arbitration?

    <p>Mandatory disclosure processes (C)</p> Signup and view all the answers

    What was the primary reason Clime Palmer restructured into an Hong Kong company?

    <p>To sue Australia under the Asian Free Trade Agreement. (D)</p> Signup and view all the answers

    In domestic arbitration, decisions in one state cannot be referred to for precedential value in another state.

    <p>False (B)</p> Signup and view all the answers

    What is the main difference between institutional and ad hoc arbitration?

    <p>Institutional arbitration provides administrative assistance and rules, while ad hoc arbitration does not.</p> Signup and view all the answers

    The dispute between White Industries and Coal India was resolved entirely within Indian Courts.

    <p>False (B)</p> Signup and view all the answers

    The International Arbitration Act 1974 (Cth) implements the NY Convention and the _______ Model Law.

    <p>UNCITRAL</p> Signup and view all the answers

    What is the typical role of the court at the seat of arbitration?

    <p>The court at the seat of arbitration is a procedural supervising court that is used to enforce awards and issue subpoenas.</p> Signup and view all the answers

    Who typically pays the registration fee at the beginning of an arbitration process?

    <p>The claimant (A)</p> Signup and view all the answers

    In the case of Tethyan Copper Company, the country that cancelled their mining lease was ________.

    <p>Pakistan</p> Signup and view all the answers

    Match the following concepts with their descriptions:

    <p>International Arbitration = Parties from different countries Domestic Arbitration = Not subject to the Model Law Institutional Arbitration = Administered by an institution Investor-State Arbitration = Involves a state and a foreign investor</p> Signup and view all the answers

    All arbitration proceedings are kept strictly confidential, with no exceptions.

    <p>False (B)</p> Signup and view all the answers

    What was the outcome of the arbitration case between Tethyan Copper Company and the Islamic Republic of Pakistan?

    <p>Tethyan Copper Company won and the mining license was reinstated. (D)</p> Signup and view all the answers

    What is the primary function of ACICA?

    <p>The Australian Centre for International Commercial Arbitration focuses on international arbitration and domestic cases where agreed.</p> Signup and view all the answers

    In order to ensure an arbitration award is enforceable, an exclusive jurisdiction clause must be included.

    <p>False (B)</p> Signup and view all the answers

    What is a key issue that arose with the APR wind turbine leases?

    <p>The US company failed to register their interest on the PPSR, leading to financial losses.</p> Signup and view all the answers

    According to the content, what is one way to avoid issues with arbitration clauses?

    <p>Use the ACICA Arbitration Rules (D)</p> Signup and view all the answers

    If an arbitration agreement is deemed null and void, a court will still refer parties to arbitration.

    <p>False (B)</p> Signup and view all the answers

    In the Robotunits v Mennel case, what did the parties agree the arbitration clause could potentially be rendered by a court?

    <p>pathological and could be rendered void</p> Signup and view all the answers

    According to the content, what is the typical first step to commence arbitration?

    <p>File a notice of arbitration (B)</p> Signup and view all the answers

    According to the content, a claimant can obtain a summary judgement in arbitration, like in court.

    <p>False (B)</p> Signup and view all the answers

    According to the content, how many days do parties have to agree on an arbitrator once a dispute is filed with ACICA?

    <p>41</p> Signup and view all the answers

    Which of the following must an arbitrator know before a case?

    <p>All of the above (D)</p> Signup and view all the answers

    Arbitrators typically write to parties to organize a case management conference after being appointed to a case

    <p>True (A)</p> Signup and view all the answers

    What type of pleadings are encouraged in arbitration?

    <p>memorial style pleadings</p> Signup and view all the answers

    Match the following reasons a court may refuse to enforce an arbitration award:

    <p>Party was under incapacity = The party lacked the legal competence to enter the agreement. Award exceeds scope = The award deals with issues outside the arbitration agreement. Award not binding = The award is not yet legally enforceable or has been set aside. Against public policy = The award is affected by fraud, corruption, or a breach of natural justice.</p> Signup and view all the answers

    Both parties need to agree that a hearing should take place

    <p>False (B)</p> Signup and view all the answers

    Besides a reasonable opportunity to be heard, what else must an arbitrator provide to a self-represented party?

    <p>nothing</p> Signup and view all the answers

    Flashcards

    Arbitration

    A legal process where parties agree to have their dispute resolved by a neutral third party, typically an expert in the relevant field.

    Institutional Arbitration

    A type of arbitration where an organization provides administrative support, such as setting rules and appointing arbitrators, but does not make the decision. They can provide arbitrators when the parties do not agree.

    Ad Hoc Arbitration

    A type of arbitration where the parties manage the process without the assistance of an institution.

    Investor-State Arbitration

    A specialized type of arbitration involving a dispute between an investor and a state.

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    Australian Commercial Arbitration Acts

    A legislative framework governing arbitration conducted in Australia, implemented through state and territory laws.

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    Australian Centre for International Commercial Arbitration

    An Australian organization that specializes in international arbitration and also provides support for domestic disputes.

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    What is arbitration?

    A private and binding process where a panel of impartial experts (arbitrators) resolves a dispute after reviewing evidence.

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    What is the New York Convention?

    It is a standard, widely recognized treaty that enforces arbitration awards globally, promoting cross-border commerce and dispute resolution.

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    What are some key benefits of arbitration?

    The ability to choose the arbitrators, the flexibility in setting procedures, and the confidentiality of the process.

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    What is investor-state arbitration?

    The process of resolving a dispute between an investor and a foreign government when there is a breach of an investment agreement.

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    What is the importance of the arbitration clause in a contract?

    The agreement that gives the arbitrators power to resolve the dispute. Be careful to define who is bound by the agreement.

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    What is 'fractured dispute resolution'?

    It refers to the risk of having different legal authorities handle separate parts of a dispute, making the resolution complex and potentially inconsistent.

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    What are some potential drawbacks of arbitration?

    Potential drawbacks include costs, limitations on arbitrator powers, potential for delays, and limited appeal rights.

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    Arbitration Agreement

    A written agreement between parties to resolve their disputes through arbitration, rather than through court proceedings.

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    Can parties commence court proceedings when there is an Arbitration Agreement?

    No, a party can't avoid arbitration by starting court proceedings when an arbitration agreement exists for the dispute.

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    What happened in Robounits v Mennel [2015]?

    Parties agreed to arbitrate by the guidelines of the Law Institute of Victoria

    The Law Institute of Victoria did not exist. Although the clause was pathological and could be rendered void by a court, the judge determined that the parties had agreed the seat would be Victoria. Courts are generally very supportive of arbitration and will try their best to uphold arbitration clauses in agreements.

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    Non-Existent Arbitration Organization

    If an arbitration clause refers to an organization that doesn't exist, the clause can still be valid if another similar organization is willing to conduct the arbitration.

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    What does the seat of arbitration mean?

    It is the court you would go to to enforce or subpoena. Typically it is the law governing the contract.

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    Arbitration Procedure

    The process of starting and responding to an arbitration case, including appointing an arbitrator.

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    Arbitration Organizations

    Arbitration organizations (like ACICA, SIAC, ICC) provide a framework and rules for conducting arbitration. They do not preside over the arbitration.

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    Investor-State Dispute Settlement (ISDS)

    A situation where a foreign investor sues a country for breach of an international investment agreement.

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    Arbitration Award Requirements

    Arbitration awards must be written, signed, dated, and include the location of the arbitration and the reasons for the decision.

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    Self-Represented Parties in Arbitration

    A self-represented party in an arbitration is entitled to reasonable opportunity to present their case, though the arbitrator may provide guidance.

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    How can evidence be received in an arbitration?

    Through documents or a hearing.

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    What industries is arbitration common in?

    Energy and resources followed by construction (high value projects)

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    What is investor-state arbitration?

    Where a company can bring a claim against a foreign country if they have breached their obligations under an agreement.

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    What are the key features of arbitration?

    enforceability, confidentiality, party choice of arbitrator, neutral forum, flexibility

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    What obligation does the New York convention place on courts?

    To recognise arbitration awards as enforceable.

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    How many states are not contracting states of the New York Convention?

    21

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    What is the New York Convention?

    One of the most important trade treaties. The foundational instrument of international arbitration.

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    What is one way that arbitration disputes might not be confidential in?

    Some commercial disputes require ASX reporting.

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    What international agreements does the International Arbitration Act 1974 integrate?

    The New York Convention, The UNCITRAL Model Law, The ICSID Convention

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    Key elements of an arbitration clause

    Broad definition of dispute, Choice of institution and rules, Seat of arbitration (the court you would go to), Language, Number of arbitrators

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    Study Notes

    Arbitration

    • Arbitration is a private process where a panel of arbitrators makes a binding decision on a dispute. It's typically based on an agreement between parties.
    • Party autonomy (agreement) is key.
    • Arbitration is more common in commercial contexts.
    • Australia has seen slower development of arbitration compared to some other regions, like Singapore.
    • A 2020 report highlighted Australian projects & contracts valued over $25 billion, with energy and resources, and construction projects as frequent users.
    • Investor-state arbitration allows claims against foreign countries for breaching agreements.

    Key Features of Arbitration

    • Enforceable decisions.
    • Confidentiality.
    • Parties choose their own arbitrator.
    • Neutral forum.
    • Informal and flexible process (potentially more efficient).

    Enforceability and Key Treaties

    • The New York Convention (1958) is a crucial international treaty for enforcing arbitration awards.
    • It's widely recognized and requires courts to recognize and enforce arbitration awards.
    • Most countries (excluding 21) in the Americas and Europe are signatory states to the Convention.
    • Australia's cases are enforceable in over 34 jurisdictions.

    Other Considerations

    • Costs can be a factor.
    • Dispute resolution structure risks.
    • Limited arbitrator powers and appeal rights.
    • Only parties to the agreement can initiate arbitration.

    Arbitration Procedure and Fairness

    • Procedural fairness (equal opportunity for both parties) is crucial.
    • Process pace and duration depend on involved parties.
    • Confidentiality is common, though not always guaranteed.
    • Arbitration awards are usually upheld by courts, unless specific grounds for appeal are present.

    Australian Context

    • Australian Arbitration Act 1974 implements international conventions (NY Convention, UNCITRAL Model Law, ICSID Convention).
    • State and territory laws reflect this.
    • Specialist arbitration lists operate within Federal and State Courts (e.g., QLD Commercial List).
    • Australian organizations like ACICA (Australian Centre for International Commercial Arbitration) play crucial roles in managing and facilitating arbitration.

    Types of Arbitration

    • International arbitration involves parties from different countries.

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    Description

    This quiz covers the key aspects of arbitration, including its definition, significance in commercial disputes, and essential features such as enforceability and confidentiality. It also discusses the impact of international treaties like the New York Convention on arbitration processes.

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