CCNP Dispute Resolution 4 — Questions and Answers
Question 1: A contract dispute clause states: 'Any dispute shall be finally resolved by arbitration in accordance with ICC Rules.' The ICC refers to:
- International Chamber of Commerce (Correct answer)
- Interstate Commerce Commission
- International Court of Claims
- Independent Commercial Conciliation
Correct answer: International Chamber of Commerce
The ICC (International Chamber of Commerce) administers one of the world's most widely used sets of international arbitration rules, headquartered in Paris.
Question 2: When a dispute resolution provision lacks specificity about the number of arbitrators, most major arbitration rules default to:
- Five arbitrators for all commercial disputes
- A sole arbitrator unless the complexity warrants three (Correct answer)
- Three arbitrators for all disputes regardless of amount
- A panel selected entirely by the administering institution without party input
Correct answer: A sole arbitrator unless the complexity warrants three
Most institutional rules (AAA, ICC, LCIA) default to a sole arbitrator for standard disputes, with three arbitrators available when the parties agree or the institution determines the case warrants it.
Question 3: In contract negotiation, a 'meet and confer' requirement before filing formal claims primarily serves to:
- Automatically toll the statute of limitations while parties negotiate
- Filter out disputes that can be resolved informally without formal proceedings (Correct answer)
- Create a record establishing which party acted in bad faith
- Transfer jurisdiction to a federal court for all subsequent proceedings
Correct answer: Filter out disputes that can be resolved informally without formal proceedings
Meet and confer requirements give parties a structured opportunity to resolve disputes directly before incurring the cost and time of formal arbitration or litigation.
Question 4: What is the doctrine of 'separability' in the context of arbitration agreements?
- The right to separate claims into different arbitral forums based on type
- An arbitration clause survives challenges to the validity of the contract containing it (Correct answer)
- The ability to sever punitive damages from compensatory claims in arbitration
- The principle that each party selects a separate arbitrator for their own claims
Correct answer: An arbitration clause survives challenges to the validity of the contract containing it
Separability (or severability) means the arbitration clause is treated as an independent agreement, so even if the main contract is void or rescinded, the arbitration clause may still be valid.
Question 5: In interest-based negotiation during dispute resolution, the focus should be on:
- The legal merits of each party's position as established by precedent
- The underlying needs and concerns driving each party's stated position (Correct answer)
- The maximum financial exposure each party faces in litigation
- The procedural rights each party holds under the applicable rules
Correct answer: The underlying needs and concerns driving each party's stated position
Interest-based negotiation, as developed in 'Getting to Yes,' looks beneath stated positions to the underlying interests, enabling solutions that satisfy both parties' actual needs.
Question 6: A party that participates in arbitration without objecting to the arbitrator's lack of jurisdiction has likely:
- Strengthened its right to challenge the award on jurisdictional grounds after the award
- Waived its right to object to jurisdiction by failing to raise it timely (Correct answer)
- Created a parallel jurisdiction that gives courts authority to review all findings
- Automatically consented to the governing law of the arbitral seat
Correct answer: Waived its right to object to jurisdiction by failing to raise it timely
Most arbitration rules and courts hold that a party waives jurisdictional objections by participating in proceedings without raising those objections in a timely manner.
Question 7: Which of the following is a key characteristic that distinguishes expert determination from arbitration?
- Expert determination is always non-binding and can be appealed to any court
- An expert decides technical questions using personal expertise, not just party evidence (Correct answer)
- Expert determination must follow the same procedural rules as AAA arbitration
- Expert determinations can only address contractual disputes under $500,000
Correct answer: An expert decides technical questions using personal expertise, not just party evidence
In expert determination, the neutral applies their own technical expertise and knowledge to resolve specific factual or valuation questions, rather than acting as a judge weighing party submissions.
CCNP Dispute Resolution 4
A contract dispute clause states: 'Any dispute shall be finally resolved by arbitration in accordance with ICC Rules.' The ICC refers to: