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Assignment Brief / Question
Emily ordered goods for £100.000 from Akateh Plc. to be delivered within a month. It's been six months since the goods were ordered and the company has still not delivered the goods.
Emily is considering arbitration to recover her money from the company as opposed to bringing an action in the High Court.
Advise Emily on the advantages and disadvantages of arbitration and if it is a better option than litigation.
The essay should include:
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In the above case, Emily had ordered goods from Akateh Plc., which was supposed to be delivered within a month. However, Akateh Plc failed to deliver the goods even after six months. As a result, Emily wants to go to arbitration in order to recover her money as opposed to going to the high court.
Arbitration is a different form of resolution between the two parties which does not require the two parties to go to a court belonging to a particular jurisdiction. In arbitration, one important feature is that both the parties need to agree to resolve the dispute by arbitration (Mayer Brown, 2013). Both the parties should agree that they do not need any intervention, in their case, from the court. Arbitration is common in disputes with respect to various business deals and transactions. The above case is a similar one wherein the parties involved are Emily and Akateh Plc.
In the case of Arbitration, both the parties would be subjected to a degree of confidentiality with respect to their case. The general public would not be able to witness the proceedings. In the case of arbitration, the proceedings would be attended by only the parties, their representatives and the tribunal. As a result, both Emily and the company would be able to have their privacy. (ORLANDO, 2009)
In the case of a court proceeding, the dispute would not be confidential and the general public would be aware of it. As a result, there can be a case of damage to the brand name with respect to the companies who are involved.
Location and Law:
The parties can choose the location of the arbitration according to their convenience. In the case of a domestic tribunal, where both the parties belong to the same country, the laws of arbitration pertinent to that country would be applied. In case, the parties belong to different countries, a multi-national tribunal would be set up for the convenience of both the parties. (Arthur Mazirow, 2008)
In case of litigation, the parties do not have the flexibility to choose a particular location for the dispute to be resolved.