Arbitration Commercial Arbitration Practice 1

Question 1

What is the primary advantage of arbitration over litigation for commercial disputes in the United States?

Accepted Answer

Arbitration offers privacy, finality, and expertise tailored to the dispute

Answer

Commercial arbitration's main advantages include confidentiality, finality of the award, ability to select expert arbitrators, and flexible procedures.

Question 2

What is a 'demand for arbitration' under AAA Commercial Rules?

Accepted Answer

The formal document filed with the AAA to initiate arbitration proceedings

Answer

Under AAA rules, arbitration is initiated by filing a Demand for Arbitration with the AAA, along with the required filing fee and copies of the arbitration agreement and relevant contract.

Question 3

Under AAA Commercial Arbitration Rules, what is the default number of arbitrators for disputes exceeding $1 million?

Accepted Answer

Three arbitrators

Answer

For disputes above $1 million, the AAA default is a three-arbitrator panel unless the parties agree otherwise, providing a broader perspective for high-stakes cases.

Question 4

What is an 'administered' arbitration?

Accepted Answer

Arbitration managed by an institution that provides procedural rules, case administration, and appointment services

Answer

Administered arbitration involves an institution like the AAA, ICC, or JAMS managing the process, setting timelines, assisting with arbitrator appointments, and overseeing fee collection.

Question 5

What is a 'pre-hearing conference' in commercial arbitration typically used for?

Accepted Answer

Addressing scheduling, procedural, and preliminary substantive issues before the main hearing

Answer

A pre-hearing conference allows the arbitrator and parties to set the schedule, identify key issues, establish discovery parameters, and agree on hearing logistics.

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration - Arbitration and Dispute Resolution Certification Practice Test

Arbitration Commercial Arbitration Practice 1