Arbitration clause - Lesson 8

arbitration clause:  statement in a contract which indicates that both parties agree to arbitration in case of a dispute
I would never enter a contract without an ARBITRATION CLAUSE.
An arbitration clause may save a lot of time. 
Both parties are protected by an arbitration clause.
Award: in this context, the decision of arbitrators; the payment of an amount of money to settle a dispute
The arbitration tribunal will make the award.
The are times when de court must force an award to be paid.
Awards are usually fair.
bona fide: in good faith, therefore honest, real
There was a bona fide order for the merchandise.
The arbitrators decided that it was a bona fide order.
A bona fide orders is one that contains no misrepresentation.
Commercial arbitration tribunal: a group of men who meet to settle a dispute between others
We´re going to submit the dispute to the commercial  arbitration tribunal.
Most countries have a commercial arbitration tribunal.
A commercial arbitration tribunal should be set up.
litigation:  court action
Litigation is expensive.
Litigation involves court action.
Much time can be lost in litigation.
merchandise : goods
The merchandise has been damaged by bilge.
What kind of merchandise are in the cargo?
The leaftlet contains a description of the merchandise.
misrepresentation: falsehood
Misrepresentation is grounds for cancellation of a contract.
The agent was accused of misrepresentation.
We stopped dealing with that company after we suspected misrepresentation.
order form : a printed form on which goods are ordered
This is the order form we´re  supposed to use.
We´ve designed a new order form.
An arbitration clause is printed on the order form.
Parties to a contract: people who sign a contract and are responsible for carrying it out
Parties to a contract should agree to arbitrate.
All parties to a contract should understand it.
The obligations of each party to a contract should be clear.
reciprocal:  said of obligations, privileges, etc. that apply with equal
force to either of the two parties to an agreement with respect to the other
My country has a reciprocal arrangement with yours.
A reciprocal arrangement was included in the contract.
No reciprocal arrangement exists here.
review: in this sense, a check by a court to see that the decision of an arbitration tribunal is carried out
The review did not involve the amount of the award.
A review was not necessary in this case.
Which court is conducting the review?
statutory: having to do with law
A court may have a statutory basis for enforcing an award.
Not all awards are enforced by statutory requirements.
A statutory requirement should be included in the agreement.
trade discipline: Keeping high standards, or honest standards, in bussines dealings
If a party to a contract does not observe trade discipline, he may lose an award.
If there are no statutory requirements, you should be guided by trade discipline.
Trade discipline is not clearly understood by everyone.

C. Check -Up

Fill in the blanks with the correct terms from the list.
arbitration clause                        misrepresentation
award                                        parties to the contract
bona fide                                    review
commercial arbitration tribunal    statutory
litigation                                      trade discipline

1.  There was a statement in the contract indicating that both parties agreed to arbitration in case of dispute. It had an ________________________.
2.  The buyer felt that the producer had given incorrect information.
He said that there was some _________________________.
3.   This was not only a failure to keep high standards.  It was more than a lack of ________________.
4.    It was a matter that had to do with law. It was a _______________ matter.
5.    He said it was not an honest, legal contract. It was not a ____________ contract.
6.    But he did not want to get involved in a court action. He wanted to avoid ________________.
7.    So he asked that the case be submitted to a group of men who would meet to settle a dispute. He wanted to submit it to a ______________ .
8.    This group met and called in all the people who had signed the contract.  They questioned the ________.
9.    They decided the buyer was right.  They made an ______________  to the buyer.
10.   He then requested the court to see that the decision was carried out.  He requested a _________.


Clutupuvus
CLAUDIA TATIANA PALACIO VASCO
Administradora de Empresas  -  Especialista en Mercadeo Internacional.
TP -  07362  de Ministerio de Desarrollo Económico.
www.asesoriasaie.com