Arbitration Commercial and Industry-Specific Arbitration 2

Question 1

What is 'franchise arbitration' and why do franchisors typically prefer it?

Accepted Answer

Mandatory arbitration of franchisee disputes with franchisors, often preferred by franchisors for consistency and confidentiality

Answer

Franchise arbitration resolves disputes between franchisors and franchisees, with franchisors preferring it for confidentiality, consistency across their system, and avoiding jury trials.

Question 2

In maritime arbitration, what organization administers most US domestic shipping disputes?

Accepted Answer

Society of Maritime Arbitrators (SMA) in New York

Answer

The Society of Maritime Arbitrators (SMA) in New York administers most US domestic maritime arbitrations, including charter party and cargo disputes.

Question 3

What is 'employment arbitration' under the Federal Arbitration Act following the Supreme Court's ruling in Epic Systems Corp. v. Lewis (2018)?

Accepted Answer

Individual employment arbitration agreements with class action waivers are generally enforceable under the FAA

Answer

In Epic Systems (2018), the Supreme Court held that employment arbitration agreements requiring individual arbitration and waiving class actions are enforceable under the FAA.

Question 4

What are 'insurance arbitration' provisions commonly used to resolve?

Accepted Answer

Coverage disputes between policyholders and insurers, reinsurance disputes, and subrogation claims

Answer

Insurance arbitration resolves coverage disputes, reinsurance disagreements, and subrogation claims, with reinsurance arbitration being particularly common and specialized.

Question 5

What is 'statutory arbitration' as distinct from contractual arbitration in the US?

Accepted Answer

Arbitration mandated by statute for specific types of disputes, such as securities or labor claims

Answer

Statutory arbitration is required or provided for by legislation for specific dispute categories, such as FINRA arbitration for securities or no-fault insurance arbitration in certain states.

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration Commercial and Industry-Specific Arbitration 2