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IMPORTANT QUESTION WITH ANSWERS RELATED TO LAW OF ARBITRATION AND CONCILIATION
1. What is the primary purpose of arbitration in dispute resolution?
a) To establish guilt
b) To maintain confidentiality
c) To reach a mutually agreed settlement
d) To create a public recordAnswer: c) To reach a mutually agreed settlement
2. Which international organization promotes arbitration as a method of resolving disputes between states and private parties?
a) United Nations
b) World Trade Organization
c) International Chamber of Commerce
d) United Nations Commission on International Trade Law (UNCITRAL)Answer: d) United Nations Commission on International Trade Law (UNCITRAL)
3. Which of the following is not a common form of arbitration clause in contracts?
a) Ad hoc arbitration
b) Institutional arbitration
c) Mediation-arbitration
d) Class-action arbitrationAnswer: d) Class-action arbitration
4. In arbitration, what is the role of an arbitrator?
a) To represent one of the parties
b) To render a legally binding decision
c) To provide legal advice
d) To assist in negotiationsAnswer: b) To render a legally binding decision
5. Which of the following is a critical element of arbitration agreements?
a) The choice of law
b) The choice of venue
c) The choice of arbitrator
d) All of the aboveAnswer: d) All of the above
6. What is the process of selecting arbitrators called?
a) Arbitration selection
b) Adjudication
c) Appointment
d) NominationAnswer: c) Appointment
7. Which principle dictates that an arbitration agreement should be respected and enforced by the courts of most countries?
a) Principle of neutrality
b) Principle of finality
c) Principle of party autonomy
d) Principle of precedentAnswer: c) Principle of party autonomy
8. In what circumstances can an arbitration award be set aside by a court?
a) If the award is incorrect
b) If the arbitrator was biased
c) If a party discovers new evidence after the award
d) If the losing party requests itAnswer: b) If the arbitrator was biased
9. What is the legal doctrine that prevents parties from re-litigating the same issues that have already been decided in arbitration or court called?
a) Res judicata
b) Arbitration estoppel
c) Collateral estoppel
d) Double jeopardyAnswer: a) Res judicata
10. Which international convention governs the recognition and enforcement of foreign arbitral awards?
a) The Geneva Convention
b) The New York Convention
c) The Hague Convention
d) The Vienna ConventionAnswer: b) The New York Convention
11. What is the maximum number of arbitrators that can be appointed in an arbitration proceeding?
a) One
b) Two
c) Three
d) It depends on the parties’ agreementAnswer: d) It depends on the parties’ agreement
12. What term is used to describe a situation where the arbitrator renders an award that goes beyond the issues presented in the arbitration?
a) Excessive jurisdiction
b) Ultra vires
c) Collusion
d) OverreachAnswer: b) Ultra vires
13. In a binding arbitration, what is the legal status of the arbitrator’s decision?
a) Advisory
b) Non-binding
c) Final and legally binding
d) SuggestiveAnswer: c) Final and legally binding
14. Which of the following is not a characteristic of international commercial arbitration?
a) Parties are from different countries
b) It is subject to national court jurisdiction
c) It often involves cross-border disputes
d) It is governed by international treatiesAnswer: b) It is subject to national court jurisdiction
15. What is the term used to describe the process where parties attempt to resolve their dispute with the assistance of a neutral third party who facilitates communication but does not make a binding decision?
a) Arbitration
b) Mediation
c) Litigation
d) ConciliationAnswer: b) Mediation
16. What is the primary role of a conciliator in a conciliation process?
a) To impose a solution
b) To render a binding decision
c) To facilitate communication between parties
d) To conduct a trialAnswer: c) To facilitate communication between parties
17. Which international organization provides rules for the settlement of disputes through arbitration and conciliation?
a) International Monetary Fund (IMF)
b) United Nations Commission on International Trade Law (UNCITRAL)
c) World Health Organization (WHO)
d) European Union (EU)Answer: b) United Nations Commission on International Trade Law (UNCITRAL)
18. In arbitration, what is a “final offer arbitration” also known as?
a) Baseball arbitration
b) Tennis arbitration
c) Soccer arbitration
d) Basketball arbitrationAnswer: a) Baseball arbitration
19. Which principle states that arbitration awards should be enforced by courts without re-examining the merits of the dispute?
a) Principle of non-interference
b) Principle of due process
c) Principle of neutrality
d) Principle of enforcementAnswer: a) Principle of non-interference
20. Which of the following is NOT a common ground for challenging an arbitrator’s impartiality?
a) Financial interest in the outcome
b) Personal relationship with one of the parties
c) Legal expertise
d) Previous involvement in the disputeAnswer: c) Legal expertise
21. What is the primary difference between binding arbitration and non-binding arbitration?
a) The presence of an arbitrator
b) The ability to appeal the decision
c) The enforceability of the decision
d) The use of mediation before arbitrationAnswer: c) The enforceability of the decision
22. Which term describes a situation where the parties agree to submit a dispute to arbitration after a dispute has already arisen?
a) Pre-dispute arbitration agreement
b) Post-dispute arbitration agreement
c) Mandatory arbitration agreement
d) Voluntary arbitration agreementAnswer: b) Post-dispute arbitration agreement
23. What is the primary role of an arbitral institution in arbitration proceedings?
a) To select the arbitrator
b) To provide the venue for the arbitration
c) To draft the arbitration agreement
d) To enforce the arbitration awardAnswer: b) To provide the venue for the arbitration
24. In arbitration, what is the term for a situation where one party fails to participate in the proceedings without a valid reason?
a) Default
b) Abstention
c) Recusal
d) SanctionAnswer: a) Default
25. What is the standard of review applied by courts when considering a motion to vacate an arbitration award?
a) De novo review
b) Abuse of discretion
c) Clear error
d) Rational basisAnswer: b) Abuse of discretion
26. What is the term for an arbitration agreement that is incorporated into a contract between the parties?
a) Stand-alone arbitration agreement
b) Separate arbitration agreement
c) Embedded arbitration agreement
d) Isolated arbitration agreementAnswer: c) Embedded arbitration agreement
27. What is the primary purpose of the “seat” or “place” of arbitration in an arbitration agreement?
a) To determine the governing law
b) To select the arbitrator
c) To provide the venue for hearings
d) To specify the language of the arbitrationAnswer: c) To provide the venue for hearings
28. In which type of arbitration do the parties agree to submit their dispute to a panel of three arbitrators, with each party selecting one arbitrator, and the two party-appointed arbitrators selecting the third?
a) Sole arbitration
b) Tripartite arbitration
c) Institutional arbitration
d) Ad hoc arbitrationAnswer: b) Tripartite arbitration
29. What is the term for a situation where the parties to a dispute agree to resolve their issues through arbitration after a dispute has already arisen?
a) Post-dispute arbitration
b) Pre-dispute arbitration
c) Voluntary arbitration
d) Compulsory arbitrationAnswer: a) Post-dispute arbitration
30. In international arbitration, what is lex arbitri?
a) The governing law of the contract
b) The law governing the arbitration process
c) The law of the seat of arbitration
d) The law of the arbitrator’s jurisdictionAnswer: c) The law of the seat of arbitration
31. In arbitration, what is the “doctrine of separability”?
a) The parties can separate the arbitration from litigation
b) The arbitration agreement is separate from the main contract and can survive its termination
c) The arbitrator can separate the issues in dispute
d) The arbitration award can be separated into multiple partsAnswer: b) The arbitration agreement is separate from the main contract and can survive its termination
32. Which of the following is a characteristic of ad hoc arbitration?
a) It is administered by a specialized institution
b) It is more expensive than institutional arbitration
c) It is not governed by any rules or procedures
d) It is only used for international disputesAnswer: c) It is not governed by any rules or procedures
33. Which of the following is NOT a typical stage in an arbitration proceeding?
a) Pleadings
b) Discovery
c) Trial
d) AwardAnswer: c) Trial
34. In arbitration, what is the term for a situation where an arbitrator exceeds their authority or makes a decision that is not within the scope of the arbitration agreement?
a) Abstention
b) Default
c) Ultra vires
d) MediationAnswer: c) Ultra vires
35. Which organization provides administrative support and rules for international arbitration cases?
a) International Court of Justice (ICJ)
b) International Chamber of Commerce (ICC)
c) United Nations (UN)
d) European Court of Human Rights (ECHR)Answer: b) International Chamber of Commerce (ICC)
36. In arbitration, what is the term for the written statement of claim and defense submitted by the parties at the beginning of the proceedings?
a) Complaint and answer
b) Petition and response
c) Pleadings
d) Opening statementAnswer: c) Pleadings
37. Which of the following is a benefit of arbitration over litigation in court?
a) Arbitration is typically faster and more cost-effective
b) Arbitration allows for class-action lawsuits
c) Arbitration decisions are always appealable
d) Arbitration proceedings are public and transparentAnswer: a) Arbitration is typically faster and more cost-effective
38. In arbitration, what is the term for a situation where the parties agree to share the cost of the arbitration equally?
a) Pro rata
b) Ad valorem
c) Per diem
d) In totoAnswer: a) Pro rata
39. Which of the following is NOT typically included in an arbitration agreement?
a) Choice of law
b) Choice of venue
c) Choice of arbitrator
d) Choice of mediatorAnswer: d) Choice of mediator
40. In arbitration, what is the term for a situation where the arbitrator issues a decision without hearing evidence or arguments from the parties?
a) Ex parte
b) Ad hoc
c) Inter partes
d) In cameraAnswer: a) Ex parte
41. Which of the following is a characteristic of binding arbitration?
a) The decision is not legally enforceable
b) The decision is advisory
c) The decision is final and legally binding
d) The decision is not binding on the partiesAnswer: c) The decision is final and legally binding
42. What is the term for a situation where an arbitrator has a financial or personal interest in the outcome of the arbitration?
a) Conflict of interest
b) Bias
c) Impartiality
d) PrejudiceAnswer: a) Conflict of interest
43. What is the term for a situation where the parties to an arbitration agree to have a third party review and modify the arbitration award if certain conditions are met?
a) Appellate arbitration
b) Mediation-arbitration
c) Adjudication
d) Award modificationAnswer: b) Mediation-arbitration
44. Which of the following is NOT a reason parties might choose arbitration over litigation in court?
a) Arbitration is less formal
b) Arbitration is more cost-effective
c) Arbitration allows for jury trials
d) Arbitration offers more privacyAnswer: c) Arbitration allows for jury trials
45. What is the term for a situation where the parties in arbitration agree to submit their dispute to a neutral third party who will issue a non-binding opinion on the likely outcome of the case?
a) Mediation
b) Expert determination
c) Adjudication
d) ConciliationAnswer: b) Expert determination
46. In arbitration, what is the term for the stage where the parties present their evidence and arguments to the arbitrator(s)?
a) Mediation
b) Pleadings
c) Discovery
d) HearingAnswer: d) Hearing
47. What is the term for an arbitration agreement that requires the parties to submit their dispute to arbitration rather than litigating in court?
a) Mandatory arbitration clause
b) Voluntary arbitration agreement
c) Optional arbitration provision
d) Suggested arbitration clauseAnswer: a) Mandatory arbitration clause
48. In arbitration, what is the term for a situation where the arbitrator refuses to hear evidence or arguments from one of the parties?
a) Default
b) Ex parte
c) Recusal
d) AbstentionAnswer: b) Ex parte
49. Which type of arbitration is commonly used for disputes between investors and states?
a) Commercial arbitration
b) Domestic arbitration
c) Investor-state arbitration
d) Labor arbitrationAnswer: c) Investor-state arbitration
50. What is the term for a situation where the parties to a dispute agree to submit to arbitration, but the specific terms of the arbitration are not yet determined?
a) Arbitration agreement in principle
b) Preliminary arbitration agreement
c) Framework arbitration agreement
d) Incomplete arbitration agreementAnswer: c) Framework arbitration agreement
