International Trade Law
INTERNATIONAL ARBITRATION
(1) In an international commercial arbitration, parties usually involve a third party, i.e. someone who is neutral, (arbitrator) and the neutral party is entrusted with the responsibility of resolving the dispute. The authority of the arbitrator is derived not from a court system, but from the consent of the parties as stipulated in their contract, or mutual agreement. It is imperative to note here that the court can enforce the decision or ruling of the arbitrator. According to the American society of law, there exist two kinds of arbitration, namely, ad hoc, and institutional. Arbitration binds both parties in conflict, and it becomes international if both parties involved in the conflict have their places of business in more than one country. The decision of the arbitrator is binding on both parties. It should be noted here that there is no appeal or review after the decision (the award) is given. The “Award” can be enforced in courts around the world. (FITT, 2014) One of the advantages of arbitration is the fact that arbitrators can be chosen as opposed to a judge, which cannot be chosen. Another advantage of arbitration is the fact that it is faster and cheaper owing to the fact that litigation hearings are always based on a court’s schedule, which can sometimes be backlogged.
MEDIATION
In mediation, the parties usually engage the services of an independent third party (mediator) who has no vested interest as regard to how the proceeding turns out. In mediation, the mediator is merely a facilitator, as opposed to being a decision maker. The power in this process lies entirely on both parties, therefore there is no winner or loser in this process. In this process, the decision of the mediator is non-binding on the parties involved because he is merely a facilitator. As stated earlier, the power lies with the parties involved, as they decide on how best to resolve the dispute by making
(1) In an international commercial arbitration, parties usually involve a third party, i.e. someone who is neutral, (arbitrator) and the neutral party is entrusted with the responsibility of resolving the dispute. The authority of the arbitrator is derived not from a court system, but from the consent of the parties as stipulated in their contract, or mutual agreement. It is imperative to note here that the court can enforce the decision or ruling of the arbitrator. According to the American society of law, there exist two kinds of arbitration, namely, ad hoc, and institutional. Arbitration binds both parties in conflict, and it becomes international if both parties involved in the conflict have their places of business in more than one country. The decision of the arbitrator is binding on both parties. It should be noted here that there is no appeal or review after the decision (the award) is given. The “Award” can be enforced in courts around the world. (FITT, 2014) One of the advantages of arbitration is the fact that arbitrators can be chosen as opposed to a judge, which cannot be chosen. Another advantage of arbitration is the fact that it is faster and cheaper owing to the fact that litigation hearings are always based on a court’s schedule, which can sometimes be backlogged.
MEDIATION
In mediation, the parties usually engage the services of an independent third party (mediator) who has no vested interest as regard to how the proceeding turns out. In mediation, the mediator is merely a facilitator, as opposed to being a decision maker. The power in this process lies entirely on both parties, therefore there is no winner or loser in this process. In this process, the decision of the mediator is non-binding on the parties involved because he is merely a facilitator. As stated earlier, the power lies with the parties involved, as they decide on how best to resolve the dispute by making
References: Carlson Arbitration L.L.C. (2014). Why arbitration? Retrieved from www.carlsonarbitration.com/?q=content/why-arbitration FITT. (2014). FITT skills: legal aspects of international trade. National Paralegal College. (2010). Advantages and disadvantages of mediation. Retrieved from http://nationalparalegal.edu/public_documents/courseware_asp_files/ADR/MediateHow/AdvantageMediate.asp