Arbitration In Business Contract

750 Words2 Pages

Question 1
The PBA signed between both parties refers to an arbitration clause in the contract. Arbitration as a process is very different from the process of litigation, for business disputes.
Here is a listing of the differences
• Public/Private, Formality o Its private between 2 parties while litigation is conducted in a public court
• Speed of Process o Arbitration is a fairly quick process, while litigation is a length process dictated by the courts
• Cost of the Process o Arbitration costs are limited to the Arbitrator, while litigation consists of courts and attorney fees
• Selection of Arbitrator/Judge o Arbitration is a joint selected process, while litigation is based on a court appointed judge and the parties have no say in the matter
• Use of Attorneys o Arbitration attorneys are optional, while litigation attorneys are required
• Evidence Allowed o Arbitration evidence is limited, while litigation full disclosure is required
• Availability of Appeal o Arbitration there is no appeal process, while litigation there is.
In reference to the PBA the points are found in section 40.4
40.4 Where a dispute is referred to arbitration the following shall apply:
40.4.1 The arbitrator shall be appointed at the request of either party by the body stated in 40.2.2
40.4.2 The arbitration shall be conducted by the arbitrator in accordance with the rules of the body stated in the contract data
40.4.3 The arbitrator shall have the power to open or revise any certificate, opinion, decision, requisition, or notice relating to the dispute as if no such certificate, opinion, decision, requisition or notice had been issued or given
40.4.4 The arbitrator's decision shall be binding on the parties who shall give effect to it without ...

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...and until it is subsequently revised by an arbitrator [40.4]
40.3.4 Should either party be dissatisfied with the decision given by the adjudicator, or should no decision be given within the period set in the Rules, such party may give notice of dissatisfaction to the other party and to the adjudicator within ten (10) working days of receipt of the decision or, should no decision be given, within ten (10) working days of expiry of the date by which the decision was required to be given the dissatisfied party shall refer the dispute to arbitration
The process follow by arbitration and adjudication is very much the same. Medication is very similar to a court hearing, with both parties bringing evidence and witness to an agreed arbiter to justify their case. The arbiter will the weigh up the evidence presented and then comes back with a solution to the situation.

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