Arbitration Commercial Arbitration Practice 2

Question 1

What does 'unconscionability' mean when raised as a defense to an arbitration clause?

Accepted Answer

The arbitration clause is so one-sided or oppressive that a court refuses to enforce it

Answer

Unconscionability is a contract defense that can render an arbitration clause unenforceable if it is both procedurally unfair (e.g., buried fine print) and substantively one-sided.

Question 2

What is 'JAMS' in the context of US commercial arbitration?

Accepted Answer

A major private dispute resolution organization offering arbitration and mediation services

Answer

JAMS (Judicial Arbitration and Mediation Services) is one of the largest private dispute resolution providers in the US, offering arbitration and mediation under its own rule sets.

Question 3

What is the significance of 'scope of the arbitration agreement' in commercial disputes?

Accepted Answer

It determines which disputes must be submitted to arbitration versus litigation

Answer

The scope of the arbitration agreement defines which claims and disputes fall within the mandatory arbitration requirement, a question of contract interpretation resolved by courts or arbitrators.

Question 4

What is a 'high-low agreement' in commercial arbitration?

Accepted Answer

An agreement that the award will be no lower than a minimum and no higher than a maximum, regardless of the arbitrator's decision

Answer

A high-low agreement sets a floor and ceiling on the arbitral award; if the award falls below the floor the claimant gets the minimum, if above the ceiling the respondent pays only the maximum.

Question 5

Under the AAA Commercial Rules, what is the 'Expedited Procedures' threshold (as of recent rules)?

Accepted Answer

Claims of $75,000 or less

Answer

Under AAA Commercial Rules, Expedited Procedures apply to cases where no claims exceed $75,000, providing streamlined timelines and simplified processes for smaller disputes.

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration Commercial Arbitration Practice 2