International Commercial Arbitration Overview

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Questions and Answers

What does the arbitration agreement constitute?

The relinquishment of the right to have disputes decided by a national court.

What rights do parties create when they agree to arbitrate?

The right to choose a mediator to resolve the disputes.

The right to have their disputes resolved judicially.

The right to avoid any binding decisions.

The right to establish the process for resolving the dispute. (correct)

Arbitration agreements need to be contained within a commercial contract to be valid.

False

What is the doctrine of separability?

It refers to the arbitration clause being considered a separate and distinct agreement from the main contract, even if the contract is invalid. Signup and view all the answers

What are the two main requirements for a valid arbitration agreement under most national laws and the New York Convention?

The agreement must be in writing and, in some cases, signed by both parties. Signup and view all the answers

What is the primary purpose of the New York Convention?

To enforce arbitration agreements and awards internationally. Signup and view all the answers

What are the three main scenarios where the issue of a valid arbitration agreement may arise?

When a party seeks to renege on its agreement to arbitrate. Signup and view all the answers

The New York Convention supersedes domestic law regarding the proper form of an arbitration agreement.

True Signup and view all the answers

What are the ways courts can ensure that the purpose of the New York Convention is not undermined by strict interpretations of the writing requirement?

By interpreting the Convention's writing requirement more liberally in light of modern communication methods. Signup and view all the answers

The signature requirement of the New York Convention applies only to submission agreements, not to contracts containing arbitration clauses.

False Signup and view all the answers

According to the New York Convention, what are the three main requirements concerning the subject matter of a dispute to be settled through arbitration?

The dispute must be in respect of a defined legal relationship, whether contractual or not. Signup and view all the answers

What is Article II(3) of the New York Convention requiring courts to do when presented with a matter subject to a valid arbitration agreement?

Courts must refer the parties to arbitration and stay the proceedings. Signup and view all the answers

What are the potential downsides of strict interpretations of the New York Convention's writing requirement?

It can make it difficult to enforce arbitration agreements in certain cases. Signup and view all the answers

Study Notes

Chapter One: Introduction to International Commercial Arbitration

Arbitration is a private dispute resolution system outside of judicial systems.
It usually involves a final, binding decision enforceable in national courts.
Arbitrators, typically one or three, are chosen by the parties.
Arbitration can be administered by an institution or be ad hoc (without an institution).
Parties choose the arbitration rules, location, and language.
Arbitration provides autonomy and avoids "home court advantage" in international disputes.
Flexibility and expertise in arbitrators are attractive features.
International commercial arbitration is now standard in international business.

Chapter Two: The Arbitration Agreement

Arbitration agreements allow parties to resolve disputes privately.
This relinquishes judicial resolution rights and creates rights to establish a dispute resolution process.
Arbitration clauses are embedded in commercial contracts, often before disputes arise.
A submission agreement is a later agreement to arbitrate an existing dispute.
Arbitration clauses are considered separate agreements, even if the main contract is invalid.
Separability doctrine allows arbitrators to proceed regardless of contract validity challenges.

Validity of Arbitration Agreements

Agreements to arbitrate must be freely, knowingly, and competently given.
Most national laws and the New York Convention require written agreements.
Validity is critical to dispute resolution.
The New York Convention requires written agreements and clarifies what "agreement in writing" means.
The writing requirement might involve a clause within the contract, a separate submission agreement, or exchanges of signed letters/telegrams.
Courts interpret the writing requirement differently.
Some require express, signed acceptance.
Some interpret the writing requirement loosely.
Divergent court interpretations can lead to inconsistent application of the Convention.

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Description

This quiz covers the fundamentals of international commercial arbitration, including its definition, advantages, and the key aspects of arbitration agreements. Understand how arbitration serves as a private dispute resolution mechanism and its significance in international business transactions.