International Commercial Arbitration Quiz
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Questions and Answers

Why is arbitration favored for resolving international commercial disputes?

  • Because all countries are legally required to use arbitration
  • Because it avoids the need for legal representation
  • Because it is less expensive than litigation
  • Because of the enforceability of arbitral awards (correct)

    • Transactional lawyers do not need to understand international commercial arbitration.

    False

    What term should be given a broad interpretation according to the Model Law?

    commercial

    Arbitration is a process by which parties agree to have their disputes determined by a neutral ________ party.

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

    Match the following concepts with their descriptions:

    <p>Arbitration = A dispute resolution process by a neutral third party Arbitrator = A neutral third party that decides disputes Arbitral Award = A final and binding decision in arbitration International Commercial Arbitration = Arbitration involving cross-border commercial activities</p> Signup and view all the answers

    What is a critical component that transactional lawyers should include in contracts to avoid clients being left without effective recourse?

    <p>Arbitration clauses</p> Signup and view all the answers

    An arbitral award is generally not considered to be binding.

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

    According to the authors, why should clients be aware of alternative dispute resolution mechanisms?

    <p>to avoid litigation in foreign courts</p> Signup and view all the answers

    According to the provided content, what is one of the most important features of international arbitration?

    <p>The enforceability of the arbitration award</p> Signup and view all the answers

    An arbitration is considered international if all parties to the agreement have their places of business in the same country.

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

    What is the name of the convention that provides the common framework for the recognition and enforcement of foreign arbitral awards?

    <p>New York Convention</p> Signup and view all the answers

    Arbitration is generally considered to be a ______ dispute resolution mechanism.

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

    If a party attempts to start court proceedings despite an existing arbitration agreement, what should a client typically do?

    <p>Apply for a stay of the court proceedings</p> Signup and view all the answers

    The New York Convention has less than 50 member countries.

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

    What is one benefit of arbitration related to publicity?

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

    Which of the following is a common element to consider when drafting an arbitration agreement?

    <p>Selection of an arbitration institute</p> Signup and view all the answers

    The earlier the arbitration clause is considered, the less appropriate the dispute resolution process will be.

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

    What is a key benefit of choosing arbitration over litigation in a foreign jurisdiction?

    <p>Having disputes resolved under a neutral third country's law</p> Signup and view all the answers

    Arbitration legislation based on the UNCITRAL Model Law will generally provide for these _______ measures.

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

    Australian courts are known for strictly interpreting dispute resolution clauses.

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

    Match the following potential grounds to set aside an arbitration award with their descriptions:

    <p>Arbitration agreement was not valid = The agreement was not legally binding Improper notice = A party did not receive proper notification of proceedings Award beyond scope = The award deals with a subject matter outside the scope of the agreement Composition of the tribunal unlawful = The arbitral tribunal was not constituted as agreed</p> Signup and view all the answers

    What is meant by the 'seat of the arbitration'?

    <p>The jurisdiction which oversees the process of the arbitration.</p> Signup and view all the answers

    What is one of the factors that may lead to setting aside an arbitral award?

    <p>The award deals with a subject matter beyond the arbitration agreement's scope</p> Signup and view all the answers

    Parties can refer disputes to arbitration by including a simple arbitration clause in their ______ .

    <p>agreement or contract</p> Signup and view all the answers

    According to the content, what is a potential way that parties can customize the arbitration process?

    <p>Placing limits on disclosure, hearing time, and recoverability of legal costs</p> Signup and view all the answers

    It is generally better to bring applications to set aside an arbitration award to arbitration institutes.

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

    What should be carefully considered in contracts involving a foreign element?

    <p>dispute resolution provisions</p> Signup and view all the answers

    Enforcement of an arbitral award in Australia is not the default position and often requires detailed review.

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

    According to the provided text, what is one reason a court may refuse to enforce an arbitral award (starts with 'i')?

    <p>If a party was under some incapacity at the time of the arbitration.</p> Signup and view all the answers

    According to the content, what is one of the reasons the enforcement of a foreign award might be considered contrary to public policy?

    <p>The award was affected by fraud or corruption.</p> Signup and view all the answers

    The International Arbitration Act (IAA) states that a breach of the rules of natural justice can be a reason to refuse the enforcement of an award.

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

    According to the content, what should parties to contracts nominate as their dispute resolution mechanism to better serve them?

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

    The choice of forum and process is in your client’s hands when ________ is selected.

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

    What does the content say that parties often do during contract negotiations regarding jurisdiction clauses which is contrary to their interests?

    <p>Insert boilerplate jurisdiction clauses.</p> Signup and view all the answers

    A client does not need to consider strategic matters with legal advisors when it comes to the enforcement of an award.

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

    According to the content, a client must enforce an arbitral award in a jurisdiction where what exists? This is a practical rather than legal consideration

    <p>the debtor has sufficient assets to meet the award</p> Signup and view all the answers

    Which is NOT a reason that a court may choose not to enforce an arbitral award?

    <p>a party does not agree with the award determined by the arbitrator and does not consent to it</p> Signup and view all the answers

    Which international instrument is the International Arbitration Act 1974 (Cth)'s legislative framework based on?

    <p>The UNCITRAL Model Law</p> Signup and view all the answers

    Study Notes

    International Commercial Arbitration 101

    • Internationalization of business leads to more cross-border commercial activity
    • Clients engaging in cross-border transactions need to understand alternative dispute resolution (ADR) mechanisms, avoiding litigation in foreign courts.
    • Arbitration is a preferred process due to its effective enforceability of arbitral awards.
    • Commercial arbitration involves disputes arising from business relationships.
    • International arbitration happens when parties from different countries or when the arbitration location or a large portion of obligations are not in the parties' home country.
    • Arbitration chosen due to enforceability of awards.
    • The New York Convention facilitates award recognition and enforcement across 157 countries.

    Why Choose Arbitration?

    • Enforceability of awards is a key feature for clients.
    • Arbitration avoids litigation in foreign jurisdictions.
    • Confidentiality protection is a crucial benefit in sensitive cases.

    How to Choose Arbitration

    • Include an explicit arbitration clause in contracts
    • Arbitration clauses include rules, arbitration institutions, number of arbitrators, language and seat of arbitration.
    • Clauses may specify limits on disclosure, hearing time, and cost recovery
    • These agreements are essential for resolving disputes efficiently and cost-effectively.

    How to Enforce Arbitration Agreements

    • Australian courts support enforcing arbitration agreements.
    • Courts take a flexible approach to interpreting dispute resolution clauses.

    How to Enforce Arbitration Awards

    • Enforcement in Australia is generally straightforward.
    • Courts will not enforce awards if a party challenges validity, incapacity, or if procedures were flawed
    • Issues can arise if the other side's ability to pay is questionable.

    DGT Costs Lawyers

    • Kerrie Rosati and Leanne Francis are court-appointed costs assessors.
    • They assess costs in diverse disputes, including complex litigation and solicitor-client assessments.

    Additional Considerations

    • Arbitration clauses concerning international business transactions require careful consideration for enforcing the terms and ensuring effective outcomes.
    • The choice of arbitration as a forum is in the client's hands.

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    Related Documents

    International Commercial Arbitration 101 PDF

    Description

    Test your knowledge on the principles and practices of international commercial arbitration. This quiz covers essential aspects such as the importance of arbitration in international disputes, key terms, and critical components for transactional lawyers. Understand the nuances of alternative dispute resolution mechanisms and the significance of arbitral awards.

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