Those are complete notes for the International business transaction course that I did, based on the oral explanations and the power points. It is perfectly complete and contains all relevant information
note: there might be some spelling faults
, International commercial arbitration
International business transaction| Anna Sonnenschein
Exam
→ Written
→ Applied questions (ex: you are a lawyer that has to give advice)
In international commercial transaction we see that businesspeople like arbitration and consider this option
when a dispute arises
→ Cross border litigation is not the prefers choice in the context of international business dispute
1. Definition: what is arbitration
It is a form of alternative dispute resolution.
→ Opinions are divided whether arbitration fits in it of not BUT for the sake of this class we will say that yes
◊ Anatomical features
you need to have
→ Agreement between the party! (see IV)
o There is a party autonomy
o The party must agree together to go through an arbitration
→ A dispute about rights and obligations
o It needs to affect the rights and obligation of parties
→ An arbitrator (See V)
o There are third parties that are ask to decided on the dispute as a third neutral party
o They do the same things as judges (render a decision about rights and obligaitons) and they have
the same state of mind as judges (= being neutral)
o The parties may decides on the arbitrary which help to shape the arbitration according to what
they need and what the procedure needs (+gives a sense of participation)
→ A final and binding decision (See VII and VIII)
o Rendered by the arbitrator
o = arbitral reward
o Possibility of recourse against this decision (BUT not often)
1
, International business transaction| Anna Sonnenschein
◊ Types?
We make a distinction between Ad hoc and institutional arbitration
Ad hoc : a type of arbitration where parties do not rely on a set of executing rule
→ They cut out an extra third party and try to organizer everything directly.
Instituional arbitration : you agree with the other party that you will have an institution administer and organize
the procedure
→ They make sure that everything, procedure wise (procedure of setting the arbitration), goes smoothly.
→ It has a sort of framework that can rely on
o It has a set of rules that it can rely on and arbitrator can use
Main difference: in ad hoc there is not an extra third body that is involved in the procedure (the institution)
Why choose one over the other?
→ There can be plenty of reason.
→ Institution provides a number of guarantees.
o And when parties do not get along, it can be easier to have a third party between them (ad hoc
requires a bit more involvement from the parties)
o with the system comes a quality label
o you can also rely on the service of that institution and rely on her to get input because the staff
has experience in that
o = it gets you an extra security that the procedure will get along
→ Ad hoc offers the parties much more independence and autonomy in the organization of the procedure.
o They are not bound by rules.
→ There are pro and cons for each, so it has to be checked on a case-by-case basis
Examples of institutions
→ ICC : international lcourt of arbitration
→ AAA : American arbitration association
→ SUPANI
→ Every country has its own arbitration institutions so there are plenty.
→ AND there are also sector arbitration institutions
o There are set up to deal only with dispute that arises in a specific sector
o BUT we will focus on non-sector arbitration institutions.
2. (Dis)advantages
Why arbitrage?
◊ advantages
2
, International business transaction| Anna Sonnenschein
Enforceability of awards = main reason why businesspeople chose to go for arbitration in an international
context
→ This has do to with the NY convention
o Very very important !
o It deals with the enforcement of reward BUT also fidelity of arbitration.
o And it regulates under what conditions an arbitration ward can be enforce or recognized.
▪ Those reason constitute the framework of a valid arbitration.
To avoid specific legal system/ international court : this goes with the idea of neutrality
→ Parties choose a panel that is composed of neutral arbitrator and especially the president will be a
neutral third party in the sense that it will not be of the nationality of the parties AND without any
connection with any of the parties
Flexibility: in the sense that they are not a lot of procedural rule that are imposed on the procedure
The ability of parties to select arbitrator.
→ Parties have a say on how the panel will be composed.
Confidentiality and privacy
→ As opposed to a court procedure, an arbitration is confidential (obligation for both the parties and the
arbitrator tribunal)
Speed : arbitration goes usually very fast compared to court proceeding
→ For a number of reasons
o Ex: there a no appeal, you cannot accept the job of arbitrator if you don’t have the ability ot deal
with the case
◊ disadvantages
Cost:
→ arbitrators are not paid by the government; they are paid by the parties
o they are paid by the value of the dispute and you may have to pay 3 arbitrator so it can become
quite expensive very fast
→ you also have to pay for all the cost and expense from the arbitration such as the rooms.
→ This is a big reason why parties will not go to arbitration
+ if there is a slight problem, you have to go to court and start all over again.
3
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur anna7789. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €8,06. Vous n'êtes lié à rien après votre achat.
