The types of arbitration we have that you should know.
CHAMAN LAW FIRM
2/5/2022 1 min read
HOW MANY TYPES OF ARBITRATION DO WE HAVE?
A number of authors have argued that King Solomon of the Bible was the first arbitrator. King Solomon, had used a procedure similar to the modern-day procedure while resolving a dispute that emerged when two women protested that they were the mother of a baby boy.
1. Commercial Arbitration: Arbitration is most commonly used in the resolution of commercial disputes. Arbitration customarily has been used for the settlement of disputes between members of trade associations and between different exchanges in the securities and commodities trade. Commercial arbitration is a means of settling disputes by referring them to a neutral person selected by the parties for a decision based on the evidence and arguments presented to the arbitration tribunal. The parties agree in advance that the decision will be accepted as final and binding.
Historically, commercial arbitration was used in resolving controversies between medieval merchants in fairs and marketplaces in England and on the European continent and in the Mediterranean and Baltic sea trade. The use of commercial arbitration increased after courts were empowered to enforce the parties’ agreement to arbitrate.
2. Labour Arbitration: Labour arbitration is the reference of disputes between management and labour unions to a neutral and impartial third party for a final resolution. It is usually the last step under a collective-bargaining agreement after all other measures to achieve a settlement have proved abortive. It is also a technique used for settling or avoiding strikes.
There are two major aspects of labour arbitration:
(a)Arbitration of rights: This refers to the arbitration of an existing labour contract when a dispute over its application arises between the labour unions and management.
(b) Arbitration of interests: This refers to arbitration between labour unions and management during the negotiation of a new labour contract.
3. International Arbitration: When there are controversies between sovereign states and they are not settled by diplomatic negotiation, both parties, as the case may be, states can agree to bring the issue to the decision of a third disinterested party, who arbitrates the dispute with binding force upon the disputant parties.