Business Law A1.

1
Question 1
EU law, often known as European Union law, is a legal system that make up the European
Union. If there is a disagreement between national law and EU legislation, this system takes
precedence over the national law of each member country. As of February 2012, with 27
member countries, 500 million people and 23 official languages, the European Union (EU) is
an organization with great legal power. The EU creates a legal order that is not traditional
national law, but 'supranational law'.
EU Law is enacted by the European Parliament. The European Parliament is one of the main
legislative institutions of the EU, deciding on issues of EU legislation and budget, together
with the Council of Ministers, comprehensively overseeing EU affairs, has the power to
exercise immunity. of the European Commission and to apply veto power to the candidate
country's accession to the EU.
However, there is still an exception. The UK will still follow regulation of Human Rights
even if Brexit happens.
Regulation of Human Rights in EU Law is to highlight the value of respect for human rights,
dignity, democracy, freedom and equality. This is based on the Charter of Fundamental
Rights (2000), which is consistent with the European Convention on Human Rights (ECHR).
So that even though the United Kingdom has left the European Union, it is still a member of
the ECHR and must adhere to its rules. Because Human Rights are not only encapsulated
within the framework of EU Law but also globally.

Question 2
The source of law in the UK is a fairly common concept, and if understood from a practical
point of view, two of the largest sources of legislation are the Statue Law and the Case Law.
Statute Law is created by the UK's parliament. Before being approved by the Queen to
become an official law, it is a bill approved by both houses of Parliament. It can be called,
Statute Law is a primary law because it is not influenced by any other authority.
Whereas most legislation are formed through law by Parliament, under a common law like
ours, the courts or judges could also produce the law. A senior one can amend or define the
law by ruling on a contested issue of law, so creating a precedent that other authorities must
follow or use in future instances. That is called Case Law.
Law making process
(SEE MORE IN APPENDIX 1)
Role
Parliament
The main function of the Parliament in the UK is to legislate, make and amend laws, conduct
debates. At the same time, it will also delegate power to the authorities under its authority.
Parliament in the UK has two houses, which is Commons and Lords. Although both houses
played an important part in bringing the bill into law, they still have a number of different
roles.
Financial Bills, like future enhancement taxes, must be decided only by Commons. These
Measures can be debated in the Lords, but they cannot be blocked or amended. Meanwhile,
the House of Lords is an independent institute from the House of Commons and it
complements each other. The role of the House of Lords often involves shaping the law,
overseeing the parts under Parliament in the enforcement of the law (including Government
and Courts).
Government
Unlike the National Assembly, the Government has no power to make laws or amend laws.
However, the Government is the party that can propose the enactment of bills. While the
National Assembly has a legislative role, the Government has a role to monitor the
implementation of the law, through which they can see things that are close to reality that the
National Assembly when making bills and laws does not see. Thanks to that, the Government
is also the party that makes suggestion to change the law. With the National Assembly
delegated the power for in-act documents under the law, the Government can also issue
decrees, circulars,...
Courts
The primary role of the Courts is to perform their constitutional function, which is to interpret
and apply the laws enact by Parliament. However, Courts also play an important role in
making law.
Judges in the UK today still often make decisions based on precedent that has been created
from previous courts. As mentioned above, case precedent is created in unusual situations
and must be new, i.e. rules established in precedents that did not exist before. In addition,
case precedent is also repeatable and mandatory when it becomes a template for dealing with
similar cases.
Therefore, creating a case law, or can be called court precedent is the role of the courts or
judges.
However, not every court will have the power to create case law. Therefore, there will also be
things to follow, namely, judical precedent. A higher court can override a lower court's
ruling, and the upper judge's decision will then take precedence over the previous, directed
verdict. For example, case of Jersey v Holley in 2005 would be overrule Smith v Morgan in
1998.
In Court Hierarchy, the court is divided into 3 levels, which is Trial court, court of appeal and
the highest level is Supreme courts. If the trial court is where the lawsuit is first heard, the
court of appeal will deal with the remaining issues from the trial, then the Supreme courts are
the highest court. Therefore, often cases heard in the Supreme courts can become case law.

Question 3
Pursuant to section 55 of the Consumer Right Act 2015, which is stating that the service must
account for the reasonableness of time and substantial inconvenience. Article 3 section 55
also states, if finishing the service in accordance with the contract is impossible, the
consumer cannot demand repeat performance. Here, the catering service to deliver the buffet
again at 6 pm tomorrow. With Selena moving to another city tomorrow, it's a time and
inconvenient inconvenience, so it's impossible. Selena could not allow the service's offer.
Next, Selena will be able to claim compensation, because in the contract entered into between
her and the service, delivery at 6pm is a condition of the contract. Therefore, when the
delivery party does not fulfill that condition, they will have to compensate for the damage.
This case can be followed by the case of Poussard v Spiers in 1875. In this case, the Spiers
hired Poussard for their opera performance on November 14, then returned it on November
28 without any objection from Poussard. However, before 28 3 days, Poussard fell ill, which
forced Spider to hire another person. After recovering from the disease, Poussard wanted to
return to the position but was rejected by Spiers and canceled his contract.
The court's solution in this case was to rule in Spiers' favor. Poussard must compensate Spiers
£83. The court held that Poussard's disappearance had affected the breach of the signed
contract, affected the terms and therefore, they would have to pay compensation.
By this case, if the innocent side is unable to fulfill the purpose for closing a deal as a
consequence of breach, then this is fundamental, so that Selena cancel the contract and seek
damages.

Question 4
Determine which type of Misrepresentation
Section 2 of the Misrepresentation Act 1967 gives a hint as to the definition of
Misrepresentation. Misrepresentation is understood as a concept of contract law expressing a
false statement of fact proposed by one party to the other for that party to enter into a
contract. There are two types of misrepresentation that are quite common, namely the
negligent misrepresentation and the fraudulent misrepresentation.
Considering this case, Transtars has decided to agree to sign a contract with Grantcars,
provided that Grantcars' cars must meet the capacity, can carry 360 tons. However, in reality,
this load can only carry 300 tons, thereby, slowing down the progress that Transstars wants,
which is affecting them.
However, Transtar has provided evidence that there is a specialized report for the trucking
industry that says their vehicles can carry up to 360 tons. This caused Transtar to misinform
Grantcars.
Pursuant to article 1 in section 2, a party exhibits counterfeit misrepresentation when that
party does not provide reasonable grounds for believing. In this case, Grantcars also provided
evidence to prove that they were not lying.
However, the Grantcars side holds a blueprint, which states that their lorries have a load
capacity of 300 tons. Therefore, their misrepresentation does not fall under the category of
innocent misrepresentation. The conditions that Grantcars do not fulfill seriously affect
Transtars, so it can be said that this is neglient misrepresentation.
Outcome
Based on two previous cases, which is HM and Dredging Co vs Ogdens (1978), this case can
follow them to reach a final conclusion. HM and D case is a case where party A is the
charterer and party B is the charterer. Party B provides a data of the tonnage that the ship can
carry that is different from the actual value to Party A, but these figures are taken by them
from an error registration. Therefore, Party A sued B and Party B appealed. The court did not
consider this to be a fraud, so it did not follow the case of Heller and Hedley (1964). The
decision they made was that they partially accepted party B's appeal, as giving false
information about capacity was a minor issue. However, Party B is still responsible for
unintentionally causing great damage under the 1967 law.
Next, pursuant to article 2 section 55 of that act, the contract can be canceled and the
breaching party must compensate the other party for the loss. Therefore, compared with the
given case, there were deviations arising from outside the contract from Grantcars that made
the contract void, so Grantcars will be the loser in the claim and must compensate Transars.
Question 5
Situation
A main victim is someone who is directly implicated inside an accident and sustains head
trauma of a tortfeasor's negligence. A secondary victim is someone who experiences nervous
shock without even being immediately subjected to any bodily risk as a result of the original
victim's accident. The judgement in Page v Smith governs the status of main victim, which
states that a claim may collect for psychiatric suffering even if the feared physical injury does
not occur.
Based on this classification, we can see that the two primary victims here are Belinda and
Tom - two people who were directly affected both physical and psychological damage by the
accident cause by High Heaven.
The fact that the quality on the High Heaven wheel is of poor quality, damaged and causing
problems will be considered according to Tort Law. It can be seen that the broken wheel
when used by customers is not something High Heaven intentionally does, but this is a
carelessness and negligence of them, but it does cause damage to the users. Therefore, this
will be considered according to the tort of negligence. A claimant has to show that High
Heaven owed him or her a duty of care, that High Heaven has breached that duty, and that the
one who claims was injured or lost due of the infringement in order to set up negligence.
In the other case, Jessica, which is Belinda's mom, would be the secondary victim, because
she was psychologically affected by watching her daughter get hurt. Jessica must show all
components of the tort of negligence if she wants to recover damages for nerve shock caused
by High Heavan's carelessness.
Intentional actors, who are placed in a situation where they have caused injury or death to
individuals, or believe they have done so through negligence on the part of the respondent,
are called involuntary participant. Considering this case, Matthew could be in such a side.
Outcome
In the following, the article will go to find out who can claim compensation and how to solve
the problem.
Belinda and Tom
The first to be considered was Belinda. As demonstrated above, Belinda is considered a
primary victim, so she can claim compensation from High Heaven. Her case is supported by
an earlier previous case, which is Page v Smith case (1996). Here, the damage that Belinda
receives is foreseeable, in addition, when Belinda uses the wheel from High Heaven, they
must ensure her safety. When the wheel breaks, High Heaven violates this duty of care.
The same is true for Tom. While he suffered no physical injuries, his mental damage was also
foreseen. His case was supported by the case of Chadwick and the British Railroad Council
(1967), where Chadwick's family claimed compensation for the mental damage caused to
Chadwick by the train accident when he must see the dead and the wounded. Therefore, Tom
can also claim compensation.
Jessica
According to the McLoughlin vs O'Brian (1982) case, the defendant is required to be liable
both to those who come in the aftermath, and his obligation is to extend to those who may be
because of his actions then have a mental breakdown.
Considering this case, as long as High Heaven's duty of care can be proven in this case and
Jessica and Belinda's connection is close enough, then Jessica can also claim compensation.
Both of the above conditions were met, firstly Jessica was in nervous shock because of
Belinda's injury, secondly Belinda was her daughter.
Matthew
As an involuntary participant, Matthew can claim High Heaven for the psychological trauma
from thinking he was the cause of the trauma to the victims. He will be supported by the case
of Dooley vs Cammell Laird (1951). This case said, employers have a responsibility to
protect employees from the trauma mentioned.

Question 6
Business Forms

Partnership
Sole Trader Company

General LP LLP

Usually set by
Naming
owner(s)
Usually set by owner(s). (Pty Ltd. stand for
private copanies)

-One-man business. -2 or more -There must -It doesn’t -A private

-Do not have an people run a be at least include company is a
official procedure. business 1 general general company in which
Formation together in the partner and partner. shares are held by
hopes of 1 limited people who are
making a liability familiar with each
profit. ones. other, dignitaries,
- Not getting and employees
kicked out by within a company
others or in a narrow
area.
-Public company
is understood as
 shares widely
spread out for the
public to invest in.
Public joint stock
companies are
often also
companies that
already have
shares traded on
the stock
exchange.
-Easy to manage -All -Limited --All -The business is
because this is one- partnership partner, partnership separate from its
man business. Owner can have equal unlike can have owners. The
Managemen has unlimited management general one, equal owners are
t liability. power. doesn't have management shareholders, they
voting power. choose an
rights in the executive
corporation. management
board to oversee
the business.
-Capital is private -The -Profit will -Each -The Company is
property. responsibility be dispersed partnership responsible for all
-This individual of limited in is not aspects of the
Funding owns all of the firm's partnership is accordance accountable business and
profits and receives limitless. They to or culpable enjoys all profits
all of the revenues, will be each share for the from the business.
but he or she also accountable of the wrongdoing Shareholders
bears every one of for the debts partnership's or receive dividends
the firm's loses. and liabilities founding carelessness from the profits
to the degree investment. of the other. earned by the
of their business.
wealth.
-Creating and -Talent, abilities, and experience are all -Shareholders
running a business is available. have limited
Pros simple and -Building smart decisions. liability
affordable. -More cash, more partnerships. -All employee
-Management that is benefits are tax
simple deductible
-All proceeds go to -Easier to raise
the owners. additional capital
through stock
sales
-The company
does not dissolve
when the owner
changes
-Risky again for -Liabilities are limitless -Difficult and
individual because A general partnership's participants are expensive to start
he/she is accountable collectively accountable for each other's -Being watched
 Cons for the many company operations. more closely
company's -Shared profits hazard of member and -Dividends paid to
obligations. managerial conflicts. shareholders are
-The owner's not tax deductible
alternatives for
acquiring money are
restricted.

MOA
Based on section 8 of the Company Act 2006, the memorandum of association can be
understood as it records who has registered to form a company, based on it. In addition, there
are people who want to contribute capital to a company, in case it is a joint stock company.
The MOA is required to follow the form and each registrant needs to verify the credentials.
In addition, also in this act, it is also clearly stated that MOA is related to 7 main contents,
namely: name-registered office-objects-object-liability-capital-association clause.

Question 7
The article will proceed to analyze the given case. The client sued Kwicpic because their
painting was damaged, meaning the original contract was breached because of George's
carelessness. Kwicpic is a partnership, so there are different ways to deal with customer
compensation issues.
Case 1
According to the Partnership Act of 1890, a general partnership consists of only general
partners, has unlimited and joint responsibility, and has the authority to control and represent
the firm. General partners must be persons who are personally liable for the company's
commitments with all of their assets. Each general partner is jointly accountable with his or
her personal assets if the firm is unable to fulfill its debts.
Because their duties are boundless in this instance, they have equal rights and obligations.
When a consumer files a claim, the compensation amount will be divided by three, jointly,
equally, and individually.
Case 2
It is a formal partnership between at least two business partners, according to the Limited
Liability Partnerships Act of 2000. Limited liability is provided to each business partner,
which implies they are not totally accountable for the company's obligations. Each partner is
in charge of his or her own actions. Although each partner's personal assets will be
safeguarded if an LLP is sued, the partnership's assets may be lost. While the partnership will
be sued, the criminal or irresponsible partner may be held individually accountable for their
acts.
So, in LLP's case, Donald, George or Bill's liability will depend on how much each person
invests in the company, as required by the client side. It was an allegation that the company
had breached the contract. As for the tort claim, under section 6.4 of the 2000 act as
mentioned above, the wrongful individual will be liable if the amount of property in the
relationship used to pay for the damage has been limit is reached. At this time, George, as the
person who directly damaged the painting, will have to make up for the remaining amount.

Question 8
Any person, company, or corporation that owns a small 1 piece of a firm and therefore has a
monetary stake inside its performance is referred to as a shareholder. Shareholders might be
individual or large corporations interested in having a voice in how a business is run. When
the institution's stock goes up, the shareholder's value goes up; and vice versa. Shareholders
want management can take initiatives to increase the stock price and dividend, which would
improve their economic position.
An overall meeting is held of all the partnership firm when crucial choices are made, like
reducing the capital, changing the reporting period, and so on. As a result, shareholders, who
have the ability to join and voting at meetings, have the authority to decide on the
organization's most significant issues (Keenan & Riches, 2009). Shareholders elect the Board
of Directors, who designate the corporate Executives, which normally include a Presidents
(CEO), Secretaries, CFO, CMO, and others. Shareholders have last say in a firm since they
pick Directors and Directors choose Officers.

Question 9
Type of Court
First, we consider that this lawsuit will have to take place in a civil court, not a criminal
framework. Next, for civil courts, we have the following courts. County court is the start of
court action for minor matters such as lender and renter conflicts, such as expulsion, housing
benefit, and repairs; consumer conflicts, such as defective products; Claims under fifty
thousand injury £; money alleges under £15,000; trust funds, mortgage loans, and actual
property claims; fiscal problems, including a lender desiring payout; workplace issues. The
larger county court will be the High Court, they are divided into 3 categories, dealing with
Family matters; Chancery and Queen's Bench. If these courts still cannot solve the case, they
will be taken to higher courts, which is Court of Appeal and Supreme Court that the article
mentioned in sentence 2.
As the case shows, the value of the lawsuit is not great, as the total amount is about £ 28000.
This is not too complicated a matter to bring to the High Court. Therefore, it is reasonable for
company A to sue company B to the County Court.
Procedure
( SEE MORE IN APPENDIX 2)
In the first step, Party A makes a claim for compensation that Party B has violated the
conditions before entering into the contract.
In the next step, Allocation, this is where the case manager decides in which direction the
case of both parties should be handled, depending on the value and complexity of the
resolution. In this case, the value of the claim is approximately 28,000, and there is nothing
wrong with this case. By definition, the consolidated track for this lawsuit will be the fast
track, as their capability for claims is between 10,000 euros and 25,000 euros. The court can
resolve this fast within 1 day.
Since this is a civil court, to the next step, defendant B and plaintiff A both have to submit
evidence to prove their arguments. At this time, if a witness appears from one of the two
parties, the witness must take an oath, record the statement in the statement, and may be
questioned by the lawyer of the other party.
If necessary, either party can go to the next step, which is to request an expert opinion for
valuation and double checks.
Then, after the court makes a decision, the decision can be applied immediately or 1 day
later. In this case, since this is a Fast track, which is different from a small claim, here the
losing party will have to pay legal fees for taking the matter to court, while the winning side
will not. They can also receive more money from the damage caused by the losing party.

Question 10
ODR
"Online dispute resolution," according to legal experts, is a term that combines online
(Online) and alternative dispute resolution (ADR) (ADR).
As a result, ODR is commonly known across the world as the use of alternative dispute
resolution procedures facilitated by the internet (online network).
With this in mind, online dispute resolution (ODR) encompasses a variety of alternative
conflict settlement techniques. It might be the Internet or another type of technology that
permits virtual information connections to be created through a network without the parties
having to meet in person.
Because ODR is a blend of ADR and a unique instrument, internet technology, it possesses
all of ADR's quality, which is including negotiation, mediation, arbitration and court.
(SEE MORE IN APPENDIX 3)
1. Negotiation
It is a method of resolving business disputes without the need for a third party. When
there is a dispute, the disputing parties together discuss and agree to resolve the conflict
by themselves. It is a fairly simple and low cost method.
2. Mediation
It is the negotiation by the parties to resolve the dispute with the support of a third party,
the mediator. Mediation results depend on the goodwill of the disputing parties and the
reputation, experience and skills of the mediator. Mediation procedures are carried out
quickly, at low cost, the parties have the right to decide and choose any person to mediate
as well as the location to conduct the mediation.
3. Arbitration
Arbitration is a dispute resolution method in which only the disputing parties participate
together with one or more arbitrators (as distinguished from open court settlement, which
can be attended by the public). Compared to a court settlement, arbitration is said to be
faster and less expensive.
 4. Court
It is a method of settling disputes at adjudication agencies in the name of the State
according to strict order and procedures. With this method, the judgment or decision of
the Court on the dispute, if the disputing parties do not voluntarily comply, can be
enforced by enforcement. Failure to comply will be coercive, so when brought to court,
the interests of the winner will be guaranteed if the losing party has assets to enforce the
judgment
Online Arbitration
Thanks to the support of information and communication technology, the procedures in ODR
are carried out very quickly and conveniently. When compared with traditional dispute
resolution, here specifically Arbitration, online dispute resolution will have the following
advantages and disadvantages.
Pros
- First of all, with the online method, the communication between the disputing parties
with each other and for the arbitrator, the organization of meetings, the request for
trial, the evidence or the arbitrator's decision will all take place on the online platform.
First of all, with the online method, the communication between the disputing parties
with each other and for the arbitrator, the organization of meetings, the request for
trial, the evidence or the arbitrator's decision will all take place on the online platform.
Therefore, they can text communication (exchange messages, chat) or video
conference (online meeting) very conveniently, helping to speed up the speed of
dispute resolution for the parties compared to traditional methods.
- The second advantage of this online dispute resolution is the cost of resolving the
case. Because the entire dispute settlement procedure can be carried out via the
internet, the service fee for online arbitration of ODR organizations is quite low
compared to traditional dispute resolution methods. For example, if two parties want
to choose a satisfactory arbitrator but are in a far away location, and the two parties
are not close to each other, the online solution will greatly reduce travel and
transportation costs.
- The third advantage, the online system can develop and integrate more modern
technologies to become intelligent and capable of handling simple disputes by itself to
help resolve a large number of disputes. accept small value. At present, technologies
for image recognition and originality analysis of data and documents; secure key
technology using digital certificates or blockchain technology to ensure the integrity
of the original data; Deep learning and artificial intelligence (AI) technologies can be
applied to ODR systems to help arbitrators more convenient in checking and verifying
data, documents, and evidence in the case provided by the parties when giving
opinions and judgments.
Cons
- The first limitation is because meeting the referee online will involve a lot of
networking, as well as the arbitration and both parties will have disagreements in the
communication language and on the keyboard. Therefore, there may be
misunderstandings between the parties in the arbitral award.
 - The next difficulty is the requirement of computer skills because working online will
require fluent use of some software to communicate as well as typing skills. This is
sometimes a huge obstacle that takes time to resolve.
- The last one is the difference in legal and legal understanding of countries because
each country has different laws and management requirements for online disputes.

References
Appendix
1. Appendix 1
There are a total of 6 steps in the process of a law becoming official. Before being a law, it
was a bill and would be introduced at the First Reading. This is merely a way of introducing
them to MPs, giving them a clearer view of it for discussion. Going to the Second Reading
session right after, this bill will be dissected more fully and objectively. MPs will now vote to
see if it can pass this evaluation. The bill may go through another step, known as the
Committee phase. Either party from the 2 houses will be able to make amendment
contributions to the bill (which will be voted on by both parties). Following the Committee
Stage will be when the Committee will have to logically explain why it made the proposed
amendments. It is called the Report phase. In the next step, which is the Third Reading, there
will be another vote happening. The bill with its changes will be brought up to decide
whether it should be sent to the Queen. And finally, after reaching the hands of the Royal
Family, the bill will be passed and become an official law, which is an Act of Parliament.

2. Appendix 2
3. Appendix 3

Negotiation Mediation Arbitration Court

- It is a method of resolving
business disputes without
the need for a third party.
When there is a dispute, the
disputing parties together
discuss and agree to resolve
the conflict by themselves.
- It is a fairly simple
method of dispute
resolution, but the
negotiation results depend
on the goodwill of the
parties. If one of the
disputing parties lacks
goodwill, the settlement
process will be lengthy,
even if the dispute is not
resolved.
-It is the negotiation -Arbitration is a dispute - It is a method of
by the parties to resolution method in settling disputes at
resolve the dispute which only the adjudication
with the support of a disputing parties agencies in the
third party, the participate together name of the State
mediator. Mediation with one or more according to strict
results depend on the arbitrators (as order and
goodwill of the distinguished from open procedures. With
disputing parties and court settlement, which this method, the
the reputation, can be attended by the judgment or
experience and skills public). Compared to a decision of the
of the mediator. court settlement, Court on the
arbitration is said to be dispute, if the
faster and less disputing parties do
expensive. There are not voluntarily
arbitrators who work in comply, can be
many fields and there enforced by
are arbitrators who enforcement.

-The negotiation method is
P not subject to the law, is not
constrained by strict
r
regulations on the
o negotiation process,
s participants,
implementation time, and
does not cost money.
- Due to the self-settlement,
the dispute is not made big
and does not affect the
reputation of the parties
specialize in one area. - Disputes shall be
- Disputes under the resolved by Court,
arbitration's jurisdiction except where the
include: Disputes parties have an
arising between the agreement on
parties from arbitration,
commercial activities; including: Disputes
Disputes arising over business
between the parties, contracts between
when only one party traders with the
conducts commercial same profit
activities; Other purpose; Disputes
disputes between the over intellectual
parties which according property rights,
to the law provisions technology transfer
shall be resolved by for profit purposes;
arbitration. Disputes between
an enterprise
(company) and
members of an
enterprise, between
members of an
enterprise, related
to the
establishment,
operation, internal
organization,
corporate
restructuring or
dissolution
enterprise body.
- Mediation - It has flexibility, - Because it is the
procedures are carried creating initiative for judicial organ of
out quickly, at low parties; fast calculation, the State, the
cost, the parties have saving time can shorten court's judgment is
the right to decide and arbitration proceedings highly coercive.
choose any person to and ensure Failure to comply
mediate as well as the confidentiality. will be coercive, so
location to conduct the Arbitrators resolve when brought to
mediation. They are disputes according to court, the interests
not constrained by the principle that of the winner will
time as in court arbitral awards and be guaranteed if the
proceedings. Friendly decisions must not be losing party has
mediation to further made public. According assets to enforce
preserve and develop to this principle, they the judgment.
business relationships can keep their business
for the benefit of both secrets as well as their
parties. Mediation is honor and reputation.
the desire of the Arbitration is not
parties to settle the limited in terms of

- The law on dispute
C settlement does not require mediation is
the parties to negotiate.
o
Therefore, from the process the agreement of the
n of organization and
s implementation, the
presence of the parties, the power to make a
rights and obligations of the binding decision or
subjects, the negotiation
results are not subject to
legal regulation. It all
depends on the goodwill of agreement. The award
the parties.
case so that no one territory because the
loses, does not lead to parties have the right to
confrontation, win or choose any arbitration
lose like the litigation center to resolve their
process in court. disputes. The arbitral
- When settling by this award is final, which is
route the parties an outstanding
examine relevant advantage compared to
documents (trade the form of dispute
secrets) during the settlement by
settlement in court, mediation. After the
these requests are not arbitrator makes an
guaranteed to be award, the parties have
processed. according no right to appeal
to the principle before any organization
declaration. or court.
- Whether or not the - Settlement by - It has certain
arbitration requires disadvantages
conducted depends on relatively high costs, because the
the longer the case is procedure in court
parties, the mediator resolved, the higher the is not flexible
does not have the arbitration fee. The because it has been
enforcement of arbitral prescribed by law
awards is not always as before. Besides, the
impose any issue on smooth and convenient principle of open
the disputing parties to as the enforcement of trial of the court,
the mediation court judgments and although
decisions. considered a
is not enforceable like progressive and
an arbitral award or a deterrent, is
court order. This sometimes an
procedure is rarely obstacle for
used if the parties do entrepreneurs when
not have trust with business secrets are
each other. revealed.
- In case of
unsuccessful
conciliation, not only
will it incur additional
costs for the
settlement, the party
whose interests are
infringed may lose the
right to initiate a
lawsuit because the
statute of limitations
for initiating a lawsuit
is no longer available
(usually occurs when
the other party lacks
goodwill, takes
advantage of the peace
settlement).