Arbitration Arbitration Awards and Enforcement 3

Question 1

What is a 'consent award' in arbitration?

Accepted Answer

An award reflecting a settlement agreement reached by the parties during arbitration

Answer

A consent award, also called an award on agreed terms, records a settlement reached during arbitration, giving it the binding force of a final arbitral award.

Question 2

Under UNCITRAL Model Law Article 34, what is the time limit for applying to set aside an arbitral award?

Accepted Answer

Three months from receipt of the award or correction

Answer

UNCITRAL Model Law Article 34(3) requires that an application to set aside be made within three months of receiving the award or any correction/interpretation thereof.

Question 3

What is the significance of 'finality' in arbitral awards?

Accepted Answer

Once issued, an award is binding and generally not subject to merits review, promoting certainty and closure

Answer

Finality means that arbitral awards are binding on the parties and not subject to ordinary appeals on the merits, which is a key benefit of arbitration over litigation.

Question 4

What remedy does a 'punitive damages' award in arbitration depend on?

Accepted Answer

Whether the arbitration agreement or applicable law permits the arbitrator to award punitive damages

Answer

Whether an arbitrator can award punitive damages depends on the scope of the arbitration clause and the applicable substantive law, as confirmed in Mastrobuono v. Shearson Lehman Hutton.

Question 5

What is the role of the 'seat of arbitration' in connection with an arbitral award?

Accepted Answer

The seat determines the curial law governing the arbitral process and the court with supervisory jurisdiction over the award

Answer

The seat of arbitration determines the lex arbitri (curial law) and identifies which courts have supervisory jurisdiction to set aside or support the award.

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration Arbitration Awards and Enforcement 3