dispute resolution

Question 1

arbitration (8 marks)

Answer 1

• involves two parties plus an arbitrator
• it works by 2 parties presenting their arguments and evidence to an arbitrator
• either an oral or paper hearing
• the outcome is an arbitrator makes a decision that is binding on both parties
• examples : Scott V Avery Clauses in commercial contracts
• ACAS for employment disputes
• ABTA for disputes between customers and holiday companies

Question 2

employment tribunals (8 marks)

Answer 2

• involves 2 parties plus the tribunal panel
• hearing takes place in front of the panel. parties present their case to the panel with supporting evidence
• outcome is the Tribunal panel issue their decision in writing, it is binding and legally enforceable
• its used between employers and employees such as claims for unfair dismissal and discrimination
• example : claim for constructive dismissal by Apprentice winner Stella English against Lord Alan Sugar

Question 3

advantages of using dispute resolution to resolve disputes

Answer 3

• faster
• cheaper
• informal

Question 4

faster

Answer 4

• NMCAT
• can resolve disputes much quicker than a court date which may take months
• also, hearings will usually take 1 day at most, much shorted than a potential court case

Question 5

cheaper

Answer 5

• NMCAT
• most of the processes are free, however some such as an arbitrator may charge for there services
• with the typical amount being £500 - £1000
• however there are always free alternatives such as through ACAS
• even when there is a cost it is always still a lower amount than going to court

Question 6

informal

Answer 6

• NMCAT
• very informal compared to going to court
• no complicated rules or need for lawyers
• time and place of the hearing can be arranged to suit both parties

Question 7

disadvantages of using dispute resolution to resolve disputes

Answer 7

• power imbalance
• no legal expertise
• under used

Question 8

power imbalance

Answer 8

• NMCAT
• some forms of dispute resolution may involve parties that are imbalanced in terms of the amount of power they hold
• for example a small local business involved in a dispute with an international manufacturing business with their own legal department
• the weaker party may feel pressurised into reaching an agreement

Question 9

no legal expertise

Answer 9

• NMCA
• most are not legal expertise
• so if a case involves a complicated legal issue they may not have the ability to effectively deal with the dispute

Question 10

under used

Answer 10

• NMCAT
• a lack of awareness of dispute resolutions and therefore it is underused as a method of resolving a dispute
• some cases are unsuitable, but others which could very easily be resolved using dispute resolutions go to court instead, costing more and taking longer to be resolved