Report on Arbitration Clause
Added on - 21 Apr 2020
Running head: COMMERCIAL LAW1ArbitrationName:Institution:Date:
COMMERCIAL LAW2Question 1An arbitrator is a person who is chosen to settle differences or disputes, and he should beformally empowered to examine, evaluate facts and make a decision on the issue. Parties in adispute may waive statutory remedies in favor of arbitration. Arbitration clause is enforced bythe court when provisions of the contract satisfy the following ; First, it contains a languagethat reflects a general understanding of the claim types represented in the waiver. Second,provide that, by signing, the arbitrator agrees to mediate all statutory claims that arises out ofthe relationship, or any dispute or claim based on state or federal statute(Willy & Willy,2010).A party does not relinquish substantive rights afforded by the statute when it agrees toarbitrate statutory claim. It only presents to their resolution in an arbitral rather than judicial.However, by agreeing to arbitrate the parties are not limited to pursue the statutory remedy ofcost and fees for attorneys or treble damages when available to prevailing parties.A party claiming waiver should prove that the waiving party understood of the existing rightto arbitrate and based on the circumstances, they acted erratically with that known right.There are factors that the court considers when determining if the totality of thecircumstances supports a finding of waiver (Bradgate, White & Llewelyn, 2012). The factorsare; first, whether a courts jurisdiction was invoked by placing a claim without requesting astay first or by filing a complaint. Second, whether there is delay by the party seekingarbitration to request a stay. Third, the level of participation in a litigation by the partyseeking to participate in the litigation. Fourth, whether there has been previous inconsistentacts the the party seeking arbitration. These are some of the reasons why one party in thearbitration cannot waiver substantive rights during arbitration.