North South University

LAW 200

Assignment # 3

Prepared for:
Barrister A.M. Masum Faculty of Business North South University

Prepared by:

ID 073 462 030

NAME Md. Kamrul Hasan

Section: 01

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What sorts of arbitration varieties do you know? What are the roles of arbitrator to you? Should arbitrator as a general rule is require being impartial and or independent of the parties?

Introduction

Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"); by whose decision (the "award") they agree to be bound. Arbitration in the United States and in other countries often includes alternative dispute resolution (ADR), a category that more commonly refers to mediation1. It is more helpful, however, simply to classify arbitration as a form of binding dispute resolution2, equivalent to litigation in the courts, and entirely distinct from the various forms of non-binding dispute resolution, such as negotiation, mediation, or non-binding determinations by experts. Arbitration is today most commonly used for the resolution of commercial disputes, particularly in the context of international commercial transactions and sometimes used to enforce credit obligations. It is also used in some countries to resolve other types of disputes, such as labor disputes, consumer disputes or family disputes, and for the resolution of certain disputes between states and between investors and states.

Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, or legislation 3 has decreed, will be final and binding. This essay will illustrate about what is arbitration, varieties of arbitration, roles of arbitrator and other important things.
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Mediation, a negotiation to resolve differences that is conducted by some impartial party. Dispute resolution is the process of resolving disputes between parties The act or process of legislating; lawmaking.

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Varieties of Arbitration

As we already know about arbitration, it is time to familiarize our self with a few of the common kinds of specials techniques when negotiating functionality appointments. It will also advocate different circumstances in which each option is most effective. It is very important that each negotiation is as resourceful because individuals partaking. Should the following common specials require some remodeling to match a unique problem, feel free to discover your complete possibilities. Most reservation personnel with which team you will likely be negotiating fully understand these common specials and will be relax working with at least one to complete your negotiations on prices. There are actually 5 techniques for resolving dispute outside the courts. That are Straight Amount Straight Assure Assure In addition Amount Assure Versus Amount Assure In addition Bonus

1.1.

Straight Amount The true secret to the present negotiation is to generate the correct portion. This option is

usually offered if a company is just not identified in a very market and also the ally is just not prepared possibility any beforehand funds. Percentages range from 100 percent on the front door on lower. Regular portion cracks are 65-70 percent on the company and 35-30 % on the place. When negotiating this sort of option, it is very important constructor your worth in the marketplace to acquire the ally to accept the highest portion rate doable. Then, it can be you to view the fact that show is well offered and receive a good market. It could be wise to acquire some thought of the marketing the ally would likely to accomplish and can include that in an agreement.

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Having said that, in case you are unfamiliar with a market, a right portion will not be the best value. The ally may be very keen on having a right portion to cut back the danger on the place. When travelling to unfamiliar trading markets, make sure you discuss some promise to pay basic costs. Not less than you recognize the place is taking a chance on something for your benefit. They could make some efforts to advertise the time frame to make sure they regain their minor investment decision.

1.2.

Straight Assure A right promise promises you of some profits when constructing readers in new markets.

Some performers, who may have hit a specific stage of their employment, can want a great deal significant helps ensure and are also quite satisfied with the right promise. The true secret to negotiations on prices is identifying the promise that works for individuals financial constraints. It is very important see whether a right promise might be enough settlement 4. When many of the data continue to show an income a lot outweighing your promise, it is usually time and energy to begin combining some separated portion specials across the right promise. 1.3. Assure In addition Amount This option is determined after thinking about the revenues potential, costs, and also the acts pull potential. In the end the data are determined; it is possible to determine the amount, if any, left over after all costs. At this stage you could possibly discuss a percentage on the excess, for being separated together with the ally. All over again, common portion cracks cover anything from 65-70 percent on the company and 35-30 % on the place, but nearly anything is feasible. Its possible youll continue to learn how this option could be advantageous that has a considerable pull. This option is earn-earn for gatherings, enjoyable and also the place for efforts for making the time frame successful.

An official agreement intended to resolve a dispute or conflict: "unions succeeded in reaching a pay settlement".

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1.4.

Assure Versus Amount In this case a warranty is determined and then a percentage is determined. The true secret

to the present option is jewel a percentage on the yucky or the World Wide Web. Continually test to make this option based on the yucky. Most bookers would like to allow it to be based on the World Wide Web. Carry out numbers for every single option to find out the way the volumes may ultimately operate. Usually have a finance calculator through your telephone when negotiating. After you know for sure option is just not creating the volumes you intend to see, advise a promise plus a portion especially if the ally contends on the area of the internet (after costs). The percentage on the separated will in all probability is lessened from 75 percent in such a case. 1.5. Assure In addition Bonus A lot of promoters like that option as its uncomplicated sales. Simply using a promise plus an extra. The advantage of this option is always that is easy to determine. If thats the case, a warranty plus a portion offers an advantage because it is the reason for each hold distributed. The amount of the extra is determined after deciding the costs and also the promise. A single extra amount or small extra portions can be offered. This is successful in circumstances if a reduced promise was arranged to cut back possibility and also the take action does as good as anticipated. These your five specials would be the common in the marketplace, but dont allow that to control you from resourceful option making. Theres no end on the alternatives when planning to discuss a package that is useful for you and the ally. The true secret to any negotiation is, being aware what the alternatives are and which solution work in your unique problem.

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Roles of Arbitrator

An arbitrator has a professional obligation5 to hear cases and render decisions based on evidence presented, persuasive testimony and application of the law or accepted business principles; however, there are many other duties for which the arbitrator is responsible. Those are given bellow

Preparing for the Case The parties provide the arbitrator with all the relevant materials to enable an understanding of the issues at dispute. In order to be fully prepared for the hearing, the arbitrator carefully reviews and digests the materials. In addition, the arbitrator conducts research to determine the legal bases for the case and decisions rendered in similar cases.

Participating in the Preliminary Steps Consistent with the goal to maintain ADR effectiveness, the arbitrator may participate in the scheduling process to ensure both parties work diligently to address their issues in a timely manner. The arbitrator may intervene if scheduling concerns, such as unreasonable delays or unexplained requests for postponement, occur.

Maintaining a Civil Hearing Process An arbitrator maintains civility and professional courtesy during the hearing, much like a judge would maintain order in the courtroom. Although the decision to participate in ADR is a mutual agreement6 between opposing parties, there always exists the potential for argument and debate. An arbitrator ensures the parties present their cases in a professional and responsible manner.
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An obligation is a requirement to take some course of action, whether legal or moral Agreement may refer to: Agreement (linguistics) or concord, cross-reference between parts of a phrase

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Discerning Fact, Evidence and Testimony The opposing parties present facts and evidence using documentation7 and other tangible or verifiable sources. An arbitrator's responsibility is to ensure balanced representation of the issues, by distinguishing fact and evidence from testimony.

Determining Application of Law, Business Principles and Industry Practices An arbitrator is deemed qualified based on a record of professional achievement in a number of business areas and industries. Many arbitrators are not lawyers by profession or education; however, all members of the American Arbitration Association and National Mediation Board must have knowledge of applicable laws and legal principles. The arbitrator is expected to utilize this knowledge throughout the ADR process.

Rendering a Decision The final step in the ADR process is reaching a decision acceptable to both parties. The arbitrator's duty is to preserve the integrity of the ADR process in rendering a decision through professional responsibility, as well as an impartial and comprehensive understanding of the disputed issues, legalities and business practices.

An arbitrator8 should be a person who stands indifferent between the parties. He should have no interest direct or remote in the subject-matter of the controversy or in the parties. Any person who is under any legal disability by virtue of statutory provision or by reason of public policy cannot act as an arbitrator. An arbitration agreement appointing a supreme head of the state as an arbitrator would be against public policy and hence void at its inception.

Documentation is a term used in several different ways. Generally, documentation (to document) refers to the process of providing evidence. 8 A person chosen to settle the issue between parties engaged in a dispute.

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Should arbitrator as a general rule is require being impartial and or independent of the parties?

It is a fundamental principle in international commercial arbitration that an arbitrator must be and remain impartial and independent at all times. This requirement is reflected in most national laws, international conventions and arbitration rules. The term 'independence' is not defined in any of the rules. In fact, it is difficult to define the qualities of independence or impartiality required of arbitrators. It is however possible to distinguish independence and impartiality on the basis that independence is generally perceived to be a situation of fact or law which is capable of objective verification whereas impartiality is more a mental state, which is necessarily subjective. It is often thought that it is easier to establish a lack of independence than to provide proof of impartiality. While the bias of arbitrators will rarely be revealed by their conduct, links with one of the parties will be easier to demonstrate9 by reference to outside sources. The issue of whether there should be a universal definition of 'independence' has been considered by the International Chamber of Commerce (ICC). The ICC decided not to provide specific guidelines to prospective arbitrators for fear that they would become too rigid. However Stephen Bond, a former Secretary General of the Court, has described the absence of a "close, substantial, recent and proven relationship" between a party and a prospective arbitrator as the essential feature of independence. How close is 'close', how substantial is 'substantial' and how recent is 'recent' are all matters of potential disagreement which will inevitably depend on the circumstances of a particular case. It should be noted that this is not the case in trade arbitrations where it is accepted that the parties and the arbitrators will all be professionals in the same field. In such cases, it is felt that the existence of such business relationships need not bring into doubt the independence of an arbitrator.
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An illustration or explanation, as of a theory or product, by exemplification or practical application.

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In an ideal world the nationality of a sole, or the presiding, arbitrator should be irrelevant. It is the qualifications, experience and integrity of the arbitrator which are the factors which should account. However it is generally the practice in international commercial arbitration to appoint a sole, or presiding, arbitrator of a different nationality from that of the parties to the dispute. This ensures that an arbitrator can be seen to be 'neutral'. If a prospective arbitrator, on being approached with a potential appointment, discloses all the facts which could conceivably be considered grounds for disqualification then, assuming no objection is made, any subsequent challenge during or after the proceedings should be unsuccessful. Furthermore, the right to an independent and impartial arbitrator will be deemed to have been waived in respect of challenges founded on facts contained in the disclosure. It should be noted, however, that the requirement of disclosure is a continuing duty throughout the arbitration. If new circumstances arise that might give rise to any doubts as to an arbitrator's independence or impartiality, he should disclose those circumstances immediately to the parties and to his fellow arbitrators if relevant. The duty of disclosure10 is set out clearly in the various arbitration rules.

4.1 Bias
The concept of 'bias' or 'partiality' concerns the bias of an arbitrator, either in favor of one of the parties or in relation to the issues in dispute. Central to this concept is the premise that the arbitrator is not acting fairly in that he is predisposed towards one of the parties and prejudiced against the other. Accordingly, 'partiality' is an abstract concept which primarily involves a state of mind. For the purposes of this guide we will focus on how the ICC Rules deal with bias, drawing comparisons with the other rules where appropriate. The provision that the tribunal act
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A disclosure is any public distribution of information about an invention, by print, demonstrations

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"fairly and impartially" was introduced into the ICC Rules in the 1998 version, although the principle that it expresses relates to basic concepts of 'due process' and 'natural justice' which have always been inherent in ICC arbitration. It is difficult to imagine parties agreeing to arbitrate if they had no faith in the fairness and impartiality of the process. However the language of the provision was carefully and deliberately chosen and contrasts with other provisions.

3.2 Fairly
Unlike similar provisions in the UNCITRAL Rules, the ICC provides that parties are to be treated '"fairly" rather than "with equality". This is because, in some cases, treating the parties in precisely the same manner may lead to unfair results. Reasonable opportunity to present case: The ICC Rules also differ from some others in providing that each party shall have a 'reasonable' as opposed to a 'full' opportunity to present its case. What is a 'full' opportunity may be the subject of debate and may not necessarily be the same as what is seen as either 'reasonable' or 'necessary'. In the context of 'impartiality', the ICC intends that the arbitral tribunal will have the discretion to decide when it has heard enough and whether it would be unreasonable to permit a continued exchange of submissions or evidence that may no longer be of any use to the arbitrators. It is therefore not open to a party to allege a lack of impartiality under the ICC Rules simply because an arbitrator has not given it a 'full' opportunity to present its case. Consequences of impartiality: in the event that an arbitrator's partiality can be demonstrated, it remains open to a party to seek the arbitrator's removal by means of the challenge procedure provided for in the various sets of rules.

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3.3 Practical examples of arbitrator bias

Direct interest in the subject matter of the arbitration Where an arbitrator has a direct interest in the outcome of the arbitration and fails to disclose it, he will be disqualified on the challenge of an interested party. Where an award has been granted before that interest was discovered, it may be set aside. This practice is entirely consistent with the requirement than an arbitrator must be impartial and the fact that his impartiality will be cast in doubt where he has an interest in the outcome. The concept goes further in that, even when the challenging party admits that it has no suspicion that the arbitrator is biased or partial, the challenge should nevertheless succeed. Because this remedy is so drastic it will be limited to cases of direct interest in one of the parties to the arbitration or the subject matter of the dispute, bearing in mind the standards of independence required by the jurisdictions which will ultimately execute or affirm the award.

Conclusion:
In theory, arbitration is a consensual process; a party cannot be forced to arbitrate a dispute unless he agrees to do so. In practice, however, many fine-print arbitration agreements are inserted in situations in which consumers and employees have no bargaining power. Moreover, arbitration clauses are frequently placed within sealed users' manuals within products, within lengthy click-through agreements on websites, and in other contexts in which meaningful consent is not realistic. Such agreements are generally divided into two types:

Agreements which provide that, if a dispute should arise, it will be resolved by agreements which are signed after a dispute has arisen, agreeing that the dispute should

arbitration. These will generally be normal contracts, but they contain an arbitration clause

be resolved by arbitration (sometimes called a "submission agreement")

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The former is the far more prevalent type of arbitration agreement. Sometimes, legal significance attaches to the type of arbitration agreement. For example, in certain Commonwealthcountries, it is possible to provide that each party should bear their own costs in a conventional arbitration clause, but not in a submission agreement.

of disputes other than in accordance with a specific legal system. These include provision indicating:

that the arbitrators "must not necessarily judge according to the strict law but as a general "internationally accepted principles of law governing contractual relations"

rule ought chiefly to consider the principles of practical business"

Agreements to refer disputes to arbitration generally have a special status in the eyes of the law. For example, in disputes on a contract, a common defence is to plead the contract is voidand thus any claim based upon it fails. It follows that if a party successfully claims that a contract is void, then each clause contained within the contract, including the arbitration clause, would be void.

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