Arbitration International Arbitration Practices 1 — Questions and Answers
Question 1: Which international arbitration institution administers the largest volume of international commercial arbitration cases globally?
- LCIA
- ICC (Correct answer)
- SIAC
- AAA-ICDR
Correct answer: ICC
The International Chamber of Commerce (ICC) administers one of the largest volumes of international commercial arbitration cases worldwide.
Question 2: What is the 'seat' of arbitration and why is it significant?
- The physical location of all hearings
- The legal domicile of the arbitration that determines applicable procedural law and supervisory courts (Correct answer)
- The nationality of the arbitrators
- The language in which the award must be written
Correct answer: The legal domicile of the arbitration that determines applicable procedural law and supervisory courts
The seat determines which country's arbitration law governs the proceedings and which courts have supervisory jurisdiction over the arbitration.
Question 3: What does 'lex arbitri' refer to in international arbitration?
- The substantive law governing the merits of the dispute
- The procedural law of the seat of arbitration (Correct answer)
- The law of the arbitral institution's home country
- The parties' chosen governing law
Correct answer: The procedural law of the seat of arbitration
Lex arbitri is the procedural law of the arbitral seat that governs the arbitration process, including validity of the agreement and grounds for challenging awards.
Question 4: Under the UNCITRAL Model Law, what is the standard for determining arbitrability of a dispute?
- Whether the dispute involves a government entity
- Whether the subject matter is capable of settlement by arbitration under applicable law (Correct answer)
- Whether the contract value exceeds $1 million
- Whether both parties are domiciled in Model Law jurisdictions
Correct answer: Whether the subject matter is capable of settlement by arbitration under applicable law
The UNCITRAL Model Law makes arbitrability dependent on whether the subject matter can be settled by arbitration under the law of the seat.
Question 5: What is 'kompetenz-kompetenz' in international arbitration?
- The arbitrator's expertise in technical matters
- The tribunal's authority to rule on its own jurisdiction (Correct answer)
- The competence standard for arbitrator selection
- The ICC's power to appoint arbitrators
Correct answer: The tribunal's authority to rule on its own jurisdiction
Kompetenz-kompetenz (or compétence-compétence) is the principle that an arbitral tribunal can determine its own jurisdiction, including challenges to the arbitration agreement's validity.
Question 6: Which US institution specifically handles international commercial disputes as a division of the AAA?
- JAMS International
- CPR International
- AAA-ICDR (International Centre for Dispute Resolution) (Correct answer)
- FINRA International
Correct answer: AAA-ICDR (International Centre for Dispute Resolution)
The International Centre for Dispute Resolution (ICDR) is the international division of the AAA, administering international commercial arbitrations under its own rules.
Arbitration International Arbitration Practices 1
Which international arbitration institution administers the largest volume of international commercial arbitration cases globally?