ANSWER ONE OF THE FOLLOWING
How far is it correct to say that consent, together with a set of rules, is sufficient to turn international arbitration into an autonomous, delocalised process, which takes place independently of international law?
Critically discuss the role and fundamentals of international commercial arbitration as an alternative dispute settlement mechanism in international trade.
“That arbitration involves a certain sacrifice . . . in terms of legal precision (inaccurate and imperfect manner) is recognised. Nevertheless, when the parties agree to arbitrate, they accept whatever reasonable uncertainties might arise from the process and thereby trade the procedures and opportunity for judicial review for the perceived simplicity, informality, and expedition of arbitration. In effect, the parties to a commercial arbitration proceeding agree to pay their quarters and take their chances in an alternate approach.”
Critically evaluate this statement.
Under the New York Convention international arbitral proceedings are, in effect, subject to control by the courts of the seat of the arbitration and by the courts of any State in which the recognition or enforcement of the arbitration award might be sought. Is that position satisfactory from the perspective (a) of the parties to the arbitration and (b) to the States concerned? How might the position be improved?