My Essay
BUS 771
International Business Law
Professor John T. Robinson, Esq.
Midterm Examination
1. Page 103 #5
What are the risks associated with arbitration? Why might a company prefer to settle disputes by litigation? What are the advantages of arbitration?
When deciding the means off settling a dispute, parties should heavily consider the advantages as well as disadvantages of all possible options. Arbitration, in most cases seen to be more efficient, speedier and less costly than resorting to trial by jury, however the downsides and risks are various. That largest risk in choosing arbitration as an option is the finality of the decision.
• The arbitration tribunal renders an award that is enforceable in court with very narrow grounds of appeal called “vacatur.” Once a decision is rendered in a binding arbitration, the parties are generally stuck with that decision. This places the parties at risk to any unfairness and prejudice of the assigned arbitrator.
• The arbitrator may approach a decision that is based on simple notions of equity, rather than the facts or the relevant law. There is a risk that an arbitrator will ignore the contract in favor of a more "equitable or fair" result.
• arbitration carries the risk that a losing party will refuse to accept or ignore an arbitral decision. However, arbitral awards are recognized and enforceable by the courts of most nations. • "One of the complaints about arbitrations these days is that it has become pretty expensive," said John A. Sherrill, a litigator and arbitrator with the law firm of Seyfarth Shaw LLP • Arbitration clauses in contracts that are imposed on less powerful entities are typically ultimatums and force them to either “take it or leave it” with very few alternatives. In addition to the fact that arbitrators are not necessarily attorneys who are well versed or even familiar with the law.
Comparatively, the capability and vast capacity of Litigation
International Business Law
Professor John T. Robinson, Esq.
Midterm Examination
1. Page 103 #5
What are the risks associated with arbitration? Why might a company prefer to settle disputes by litigation? What are the advantages of arbitration?
When deciding the means off settling a dispute, parties should heavily consider the advantages as well as disadvantages of all possible options. Arbitration, in most cases seen to be more efficient, speedier and less costly than resorting to trial by jury, however the downsides and risks are various. That largest risk in choosing arbitration as an option is the finality of the decision.
• The arbitration tribunal renders an award that is enforceable in court with very narrow grounds of appeal called “vacatur.” Once a decision is rendered in a binding arbitration, the parties are generally stuck with that decision. This places the parties at risk to any unfairness and prejudice of the assigned arbitrator.
• The arbitrator may approach a decision that is based on simple notions of equity, rather than the facts or the relevant law. There is a risk that an arbitrator will ignore the contract in favor of a more "equitable or fair" result.
• arbitration carries the risk that a losing party will refuse to accept or ignore an arbitral decision. However, arbitral awards are recognized and enforceable by the courts of most nations. • "One of the complaints about arbitrations these days is that it has become pretty expensive," said John A. Sherrill, a litigator and arbitrator with the law firm of Seyfarth Shaw LLP • Arbitration clauses in contracts that are imposed on less powerful entities are typically ultimatums and force them to either “take it or leave it” with very few alternatives. In addition to the fact that arbitrators are not necessarily attorneys who are well versed or even familiar with the law.
Comparatively, the capability and vast capacity of Litigation