Comparison of Ad Hoc and Institutional Arbitration

This assignment requires a comparative analysis of ad hoc and institutional arbitration. It involves researching and discussing the key characteristics, benefits, and drawbacks of each type of arbitration. The assignment also includes a review of relevant case studies and legal articles to provide a comprehensive understanding of the topic.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explaining various sources of law as well as laws which are mandatory to comply within
an organisation........................................................................................................................1
P2 Explaining role of government for making law and ways through which statutory as well
as common law implemented within justice courts................................................................2
TASK 2............................................................................................................................................3
P3, 1 Advising Collin and David steps require to take, keep in mind issues of restrictions
related to create and name their firm......................................................................................3
P3, 2 Suggesting Sophia about her rights related to employment with reference to unfair
dismissal.................................................................................................................................4
P3, 3 Advising Mrs. Carter about her rights as well as obligations related to terms of contract
with AD Motors Ltd...............................................................................................................5
TASK 3............................................................................................................................................6
P4, 1 Suggesting Mr, Smith about litigation against him by PHB Ltd..................................6
P4, 2 Advising Samantha on ways through which assets of company should be distributed
among creditors......................................................................................................................6
P5 Providing justifications behind use of suitable legal solutions.........................................7
TASK 4............................................................................................................................................7
P6, 1 Advising AFG Oil Company about their legal rights for resolving dispute at arbitration 7
P6, 2 Differentiae two terms which are institutional and ad hoc arbitration..........................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
A particular term where wide range of legal laws, rules and regulations included and
mandatory to apply at the workplace of an organisation for operating in industry smoothly is
referred as business law. When any kind of legal rule is framed by the authorities then the
companies are necessary to apply and follow properly (Cheeseman and Garvey, 2014). So that, it
able to run in the market smoothly and meet objectives appropriately. The current study shows
basic nature of legal systems by considering sources of laws. Further, role plays by the
government for preparing laws and applying them in justice courts are clearly reflected. Apart
from this, considering to given cases impact of company, employment and contract law on the
business is described in the current project. In addition to this, suitable suggestions are given for
resolving the provided legal cases related to termination of contract, liquidation and rescue from
insolvency. At the end of present study of business law, legal solutions are advised along with
segregating institutional abd ad hoc arbitration.
TASK 1
Report
To,
Ms. Helena Muller
Subject: Basic nature of the legal system
P1 Explaining various sources of law as well as laws which are mandatory to comply within an
organisation
When any kind of new law comes or introduced in the market then it was prepared by
particular party who is responsible for this. Once the new legislation comes into consideration
then respective businesses are mandatory to implement at the workplace. If any firm ignores
legal laws and follow properly then legal actions are taken by the authorised parties. Further,
the laws' origin from various sources which are necessary to adopt by every enterprise. Sources
of the laws are basically categorised into two parts which are like primary as well as secondary
(Crane and Matten, 2016). Explanation of both the primary and secondary both the sources of
laws is described below:
Primary Sources: Those rules which are framed and amended in direct manner by
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parliament are considered as primary sources. Further, results of laws are also directly obtained
under this by parliament and European laws. It includes some sources which are such as
follows: Case laws: In accordance with this source, when any decisions or judgements on
particular case are included. Herein, when judge makes specific decision for particular
kind of issue of case arisen in court then it becomes law. This is mandatory to use every
company when legal solutions are required to made related to respective case and
judgements (Posner, 2014).
 Parliament legislation: Second part of primary sources is parliament legislation where
some kinds of electronic approaches of systems applied. When the legal cases are
resolved then several electronic systems are used which are like print media,
computerised ways, SOAS database etc. These are also required to use by the firms
when they going to make solution of any legal cases.
Secondary Sources: When laws come into consideration on the basis of comments
done by judges on legal cases then referred as secondary source. Here, laws are not acquired
directly and amended on the business. This can be understood by two terms which are like: Legal encyclopedias: This type of source of law includes key points, specific cases as
well as bills which are gained through conducting research deeply.
 Parliamentary and Non-parliamentary publications: Apart from this, laws can be made
from debates in parliament, papers of house of commands, various command papers,
house of lords etc (Smith and Malloy, 2013). Further, publications of journals, news or
articles through non-parliamentary are also considered as secondary source of law.
P2 Explaining role of government for making law and ways through which statutory as well as
common law implemented within justice courts
At the workplace of an organisation when any kind of legal laws and regulations applied
then all are made by authorised parties. Apart from this, government also plays a major role in
this aspect. When parliament of the country is going to make specific laws then at the initial
time it approaches up to the government. From there, it able to know actual condition of market
and business world. Once proper discussion with government are completed the considering to
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the current situations, parliament makes laws. Further, when any kind of bill needs to pass for
preparing laws then also approval is given by government of country only. In addition to this,
for preparing the legal laws, government represents clear picture and outline of the business
conditions. So that, parliament able to make the new regulations in accordance to situations
provided by government. Moreover, committee is framed and decided who completed proper
reading of the proposals provided by parliament for amending legal rules (Gheorghe, 2014).
Hence, it can be clearly said that government has huge contribution in order to make any law
and legal regulation within country.
When the rules and regulations are prepared then applied in justice courts for making
effectual solutions of several cases raised from the companies. Those laws which are necessary
to apply in the business are considered as statutory. When a judge is going to make solution of
legal case then the judge has to apply the laws which come under nature of statutory. Further,
these kinds of laws are applied by two kinds of justice courts which are like high and supreme.
When these are implemented that some changes can be made if required as per the legal case
scenario. On the other side, rules enacted by particular authorisation party and non mandatory to
follow are fall under common laws (Dimatteo, 2016). There is not any legal requirement for
applying such kinds of rules while making decisions within justice courts.
TASK 2
P3, 1 Advising Collin and David steps require to take, keep in mind issues of restrictions related
to create and name their firm
As per the legal law and regulation, if one company exists in the market with one name
then another entrepreneur has not any right to establish firm with the same name. There are
several rules and guidelines available which are necessary to follow by the entrepreneurs. These
all the rules are issued by government of the country which help to Collin and David to give a
name to their company. Further, basic steps, guidelines, rules and regulations related to company
name are stated below:
 It is strictly restricted that new businessman cannot adopt name of company which are
already exist in the market.
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 At the time of deciding name of firm any kind of misleading information which are
related to functions of organisation should be avoided (Trademark Law and Naming Your
Business, 2017). Apart from this, name of firm should not hurt to any people or
community.
 All the information related to name as well as its functions must be presented clearly
among local community within process of registration.
 Name of the firm should not harm to any another enterprise of people of the country.
 At the time of using suffix i.e. limited with name of entity then it should be able to give
justifications that it is limited company. Along with this, procedure of listing in stock
market must be completed properly in legal manner.
 Furthermore, confusion related to name as well as its goodwill should not be there which
is referred as opportunistic registration (Akintoye, Renukappa and Lal, 2012).
Therefore, it can be recommended to Collin and David that they should consider such
guidelines while fixing name of company. If they not follow these all the ways then government
can sue upon them and take legal actions.
P3, 2 Suggesting Sophia about her rights related to employment with reference to unfair
dismissal
Before dismissing an employee from the workplace, it is necessary that company must
analyse issues raised along with reasons by the worker. There are some specific rules issues by
parliament and government of the country which are compulsory to follow the firms while
terminating an employee. Further, three dismissal regulations are stated below:
 When worker not performing his all the duties and responsibilities properly then
employer has right to terminate from the job.
 Second rule is that, when employee has ability and competency to perform duties but not
ready to complete them because of some conditions then company can be dismissed him
(McCahery and Vermeulen, 2014).
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 At the last, the situation in which worker takes uniform leaves, not punctuate or arrive
office late and not uses other professional aspects then company is liable to dismiss him
or her from the workplace.
As per the case, GST Ltd can terminate or dismiss to an employee when the above cases
performed by Sophia. There are generally three kinds of dismissal introduced by government
which are like fair or unfair, constructive and wrongful. Herein, Sophia involved under the
wrongful dismissal where GST Ltd terminate her without informing. Along with this, firm not
gives opportunity to serve notice period of one month or as per the firm's law. Decision of
dismissal done by GST Ltd due to taking more leaves after showing fake medical certificates.
Further, she never takes leaves without informing and not arrive at office late continuously.
Therefore, Sophia has rights to sue upon GST Ltd for terminating without informing her.
P3, 3 Advising Mrs. Carter about her rights as well as obligations related to terms of contract
with AD Motors Ltd.
As per the current case scenario, seller or service provider not provided the best possible
services to buyer. Under the implicit term contract is to be made on an understood manner where
seller must give the best possible products and services to the customers. If this thing is not done
and consumer face any issue or losses then he is liable to sue to upon seller. In the current case,
AD Motors Ltd not used original and branded parts to repair or service car of Mrs. Carter. When
talking about the payment then Mrs. Carter paid 50% amount and remaining will be paid after
completion of servicing as per the rule of AD Motors. Due to using low quality of parts, Mrs.
Carter refused to pay the remaining amount i.e. 50%.
As per the laws of contract, it is one kind of implicit term in which it is mandatory to use
higher quality of parts for repairing the car. Herein, Mrs. Carter has rights to sue upon AD
Motors Limited from the losses suffered by her. Apart from this, in the future if any kind of such
problem come into consideration then also she can sue and taken legal actions against to the
company (Oladokun and Aluko, 2014). Further, she has rights to fulfil her losses and issues
which are suffered and faced respectively. Moreover, Mrs. Crater has another right to sue upon
AD Motors Ltd in terms of fraud performed by the company. Hence, this case goes in favour of
Mrs. Carter where losses suffered by her must be fulfilled by AD Motors Ltd.
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TASK 3
P4, 1 Suggesting Mr, Smith about litigation against him by PHB Ltd.
When any particular contract is made between two parties and breached by anyone then it
becomes void. As per the case scenario, PHB Ltd. Left construction work of house of Mr. Smith
which is 40% where payment of labour is made by him. Further, remained construction is to be
completed by Mr. Smith using leftover material. Due to this particular situation, PHB Ltd sues
upon Mr. Smith which is against to legal actions (Gaillard, 2014). Basic reason behind this is
that, contract is breached by the construction company rather than Mr. Smith. In this case, PHB
Ltd is not liable for suing upon the party who consume its services.
At this particular situation of termination of contract, Mr. Smith is liable to sue upon
PHB Ltd for not completing whole work without any conditions as per the consumer law. Apart
from this, Mr. Smith should sue for collecting the amount by which he is suffering. Further,
period in which project has to be completed is not done for which also Mr. Smith can sue upon
PHB Ltd.
P4, 2 Advising Samantha on ways through which assets of company should be distributed among
creditors
Those kinds of stakeholders to whom the company has to pay sum of money after some
times are considered as creditors. When the management not has adequate level of amount and
unable to make payment among creditors on time then it go for other methods. Further, it can
allow such stakeholders for giving the assets which it has. In order to distribute assets of firm
there are some methods included in legal laws and regulations. Apart from this, some principles
of asset distribution are also available which help to complete this task in legal manner. It can be
advised to Samantha by considering the legal case that, it should distribute assets among those
creditors who are preferential. This particular system come under consideration of third ranking
claims where the enterprise distribute assets of it (Jelowicki, 2015). The reason behind this
specific suggestion is that, it helps to the company for completed this procedure in an effectual
direction. On the other side, if Samantha uses any other method for distributing assets between
creditors then cannot complete this process in adequate manner.
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Therefore, it has been advised to Samantha that, assets should be allocated among
creditors on pro rata basis. Apart from this, sum of money received after selling the assets should
be transferred in account of Aston business society.
P5 Providing justifications behind use of suitable legal solutions
In the previous situation Mr. Smith should sue upon PHB Ltd for the losses suffered by
him for breaching the contract. Reason behind giving this particular suggestion is that, as per the
law of contract and consumer act, party who breach contract without prior information that will
be liable to fulfil requirements of suffered party (Haigh, 2015).
As per the second law, Busy bees liquidated where Samantha hired as liquidator of the
organisation. Due to having all the rights of settling creditor's accounts she is liable to distribute
the amount among them. As per the laws assets of firm distributed between creditors on pro rata
basis and preferential. Further, from the sell of premises worth of 1,50,000 are raised by Aston
business society due to which more assets will be transferred in its account.
TASK 4
P6, 1 Advising AFG Oil Company about their legal rights for resolving dispute at arbitration
In order to make legal solution of various cases, Alternative Dispute Resolution (ADR) is
one of the common and best method. It comes under the process of arbitration where any long
court cases or procedures not involved. As per the arbitration, settlement of problems are to be
done out of court where external party hired by the firm. When management of an enterprise
considers this method then able to avoid long process of courts. Along with brand image as well
as goodwill of the company also not affected in the market. In this method of dispute resolution,
an external person is hired who investigate about the case and reasons behind generating
disputes. On the basis of this, proper decisions are taken for both the suffered parties at the
working environment (Zhu and Zhu, 2016). On the other side, if any suffered party not comes to
the conclusion and dissatisfied from judgements made by arbitrator then it reaches up to court.
When the firm applies arbitration method then beneficial because case not held of very long
period of time like as court.
As per the case scenario, AFG Oil Company is hired for making solution of dispute
arisen at the workplace. As an arbitrator, it must follow and consider its legal rights at the time of
using arbitration method to resolve the issues. Generally, arbitrator is an outside party from court
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who make legal solutions. According to legal rules and regulations, AFG Oil Company must
follow laws which are related to arbitration legally. It is basic and utmost legal right of this by
which it able to make an effectual solution of the dispute arisen. Apart from this, it must provide
proper solution of the disputes and should not hold the case for long time (Goldman, 2013).
Hence, these are the rules and rights which should be followed by AFG Oil to make proper
solution of disputes using arbitration.
P6, 2 Differentiae two terms which are institutional and ad hoc arbitration
The terms which are supportive for an enterprise in order to make effective solutions of
various business cases are explained herein. For this, several kinds of ways and methods
available which are like institutional and ad hoc arbitration. These both have one similarity that,
help for determining legal solutions of various business problems. Apart from this, these have
some differences as well which are stated below:
 A tool of making solution in which s particular institution intervenes as well as plays
role of administration in procedure of arbitration is known as institutional. On the
another side, ad hoc arbitration method of deriving legal solution is not administered or
governed by some particular institutions like ICC, DIAC, LCIA and DIFC (Institutional
vs. 'ad hoc' arbitration, 2011).
 Under the institutional, all the rules and forms are followed of itself where various laws
are prepared by administration whereas, under ad hoc suffered parties have to derive
elements as well as factors of the arbitration to make proper solution of legal cases.
 Institutional arbitration can be easily available which helps to make an efrfective
solutions using legal laws. While, ad hoc arbitration is little complex procedure where
all the required legal rules are not taken into consideration or applied.
 Apart from this, previous method is governed by one administration and due to this it is
not structured properly whereas second tool is highly and appropriately structured
(Tamrakar and Tiwari, 2015).
CONCLUSION
On the basis of the above analysis it can be articulated that, business law consists of
several legal rules and regulations helps to the firms or individual for making effective solution
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of legal issues. Further, arbitration is highly effectual process comes under ADR and supports to
determine proper and suitable solutions outside to settlement of courts. Moreover, in the case of
Sophia GST Ltd uses wrongful dismissal to terminate her from the workplace. Apart from this,
Mrs. Carter has legal rights to sue upon AD Motors Ltd for losses and issues faced by her. It can
be concluded that, Mr. Smith is liable to sue on PHB Ltd and fulfil losses suffered by him for
breaching the contract. Furthermore, suitable legal solutions are given to AFG Oil Company in
the end which help to resolve disputes properly using arbitration.
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REFERENCES
Journals and Books
Akintoye, A., Renukappa, S. and Lal, H., 2012. The abolition of the “contracts in writing” rule in
the 2009 Construction Act: Potential implications for UK adjudication. International
Journal of Law in the Built Environment. 4(2). pp.140–156.
Cheeseman, H. R. and Garvey, J. R., 2014. Business law. Pearson.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dimatteo, L. A., 2016. International Business Law and the Legal Environment. Routledge.
Gaillard, E., 2014. Transnational Law: A Legal System or a Method of Decision
Making?. Arbitration International. 17(1). pp.59-72.
Gheorghe, L., 2014. Fiducia In The New Civil Code: An Example Of Vitalization By
International Business Law Of The Relationship Between Romanian Law And Common
Law. Persp. Bus. LJ. 3. pp. 276.
Goldman, A., 2013. Business law: Principles and Practices. Cengage.
Haigh, R., 2015. Legal English. Routledge.
McCahery, J. A. and Vermeulen, E. P., 2014. Conservatism and innovation in venture capital
contracting. European Business Organization Law Review. 15(2). pp. 235-266.
Oladokun, T. T. and Aluko, T. B., 2014. Dispute resolution in corporate multi-tenanted property
management: a case study. Journal of Corporate Real Estate. 16(1). pp. 22 – 32.
Posner, R. A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Smith, J. and Malloy, R., 2013. Real Estate Transactions: Problems, Cases, and Materials.
Wolters Kluwer Law & Business.
Zhu, Z. G. and Zhu, W. Z., 2016. A Historic View of the US Business Ethical Laws and
Implications for Developing Countries like China. Review of European Studies. 8(3). p.49.
Online
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Institutional vs. 'ad hoc' arbitration. 2011. [Online]. Available through: <https://www.out-
law.com/en/topics/projects—construction/international-arbitration/institutional-vs-ad-
hoc-arbitration/>.
Jelowicki, E., 2015. How Assets are distributed to Creditors through Corporate Insolvency.
[Online]. Available through: <http://www.crosschannellawyers.co.uk/how-assets-are-
distributed-to-creditors-through-corporate-insolvency/>.
Tamrakar, V. and Tiwari, G., 2015. Ad Hoc And Institutional Arbitration. [Online]. Available
through: <http://www.legalserviceindia.com/article/l64-Ad-Hoc-and-Institutional-
Arbitration.html>.
Trademark Law and Naming Your Business. 2017. [Online]. Available through <
http://www.dmlp.org/legal-guide/trademark-law-and-naming-your-business>.
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