Types of Arbitration: A Comprehensive Guide for Law Students

Question 1

Which of the following is a fundamental characteristic of domestic arbitration?

Accepted Answer

It is enforceable only within the borders of the country in which it takes place

Answer

It often involves parties from different countries

Answer

It is always subject to international arbitration rules

Answer

It is usually more expensive than international arbitration

Question 2

What primary function does the International Arbitration Centre (IAC) perform in international arbitration?

Accepted Answer

It administers arbitration proceedings and provides support services

Answer

It establishes and enforces international arbitration rules

Answer

It appoints arbitrators and determines the arbitration venue

Answer

It enforces arbitral awards

Question 3

Which of the following is not a type of arbitration classified based on the nature of the parties involved?

Accepted Answer

Territorial arbitration

Answer

Commercial arbitration

Answer

Investor-state arbitration

Answer

Consumer arbitration

Question 4

What is the primary responsibility of the arbitral tribunal in arbitration proceedings?

Accepted Answer

To manage the arbitration hearing and reach a decision on the dispute

Answer

To draft and enforce the arbitration agreement

Answer

To administer arbitration proceedings and provide administrative support

Answer

To enforce arbitral awards

Question 5

What is the primary objective of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards?

Accepted Answer

To facilitate the enforcement of international arbitral awards

Answer

To standardize arbitration laws across different jurisdictions

Answer

To provide guidelines for conducting arbitration proceedings

Answer

To establish a permanent international arbitration court

Question 6

Which of the following is NOT a feature of domestic arbitration?

Accepted Answer

May involve international elements, such as parties from different countries

Answer

Conducted within the legal framework of a single country

Answer

Typically involves parties from the same jurisdiction

Answer

Enforceable by domestic courts

Question 7

Which type of arbitration is administered by an arbitral institution that provides rules and procedures for the arbitration?

Accepted Answer

Institutional arbitration

Answer

Ad hoc arbitration

Answer

Domestic arbitration

Answer

International arbitration

Question 8

Which of the following is NOT an example of an international arbitration institution?

Accepted Answer

American Arbitration Association (AAA)

Answer

International Chamber of Commerce (ICC)

Answer

London Court of International Arbitration (LCIA)

Answer

Permanent Court of Arbitration (PCA)

Question 9

Which characteristic distinguishes domestic arbitration?

Accepted Answer

Limited enforceability beyond national borders

Answer

Proceedings governed by an international arbitration body

Answer

Enforceable internationally under the New York Convention

Answer

Administered by a permanent arbitration institution

Question 10

What is a key feature of ad hoc arbitration?

Accepted Answer

Absence of institutional administration and support

Answer

Establishment of a permanent arbitral tribunal

Answer

Arbitration conducted under institutional rules

Answer

Mandatory use of UNCITRAL Arbitration Rules

Question 11

What is the primary role of institutional arbitration rules in the arbitration process?

Accepted Answer

Providing a framework for conducting arbitration proceedings

Answer

Guaranteeing the impartiality and independence of arbitrators

Answer

Determining the enforceability of the arbitral award

Answer

Establishing the jurisdiction of the arbitral tribunal

Question 12

What are the fundamental differences between domestic and international arbitration?

Accepted Answer

Enforceability, governing law, and procedural rules

Answer

Scope of application, jurisdiction, and arbitrator qualifications

Answer

Availability of remedies, seat of arbitration, and language

Answer

Costs, timelines, and enforceability of awards

Question 13

Ad hoc arbitration is distinguished by:

Accepted Answer

Being established specifically for the resolution of a particular dispute

Answer

Being administered by a permanent arbitral institution

Answer

Following established rules and procedures

Answer

Being legally binding on the parties involved

Question 14

Which of the following factors is NOT relevant when selecting an arbitration forum?

Accepted Answer

Personal preferences of the parties involved

Answer

Cost implications

Answer

Enforceability of the arbitral award

Answer

Reputation of the arbitral institution

Question 15

A potential disadvantage of ad hoc arbitration is:

Accepted Answer

Lack of institutional support and oversight

Answer

Higher costs compared to institutional arbitration

Answer

Reduced flexibility in terms of procedural rules

Answer

Limited mechanisms for enforcing the arbitral award

Question 16

A common feature of international arbitration proceedings is:

Accepted Answer

Emphasis on confidentiality

Answer

Appointment of a sole arbitrator

Answer

Application of the domestic law of the host country

Answer

Mandatory mediation prior to arbitration

Question 17

Which of the following is not a recognized form of arbitration?

Accepted Answer

Non-binding arbitration

Answer

Domestic arbitration

Answer

International arbitration

Answer

Ad hoc arbitration

Question 18

Regarding the enforceability of arbitration awards:

Accepted Answer

Arbitration awards are enforceable only if the parties have agreed to be bound by them

Answer

Arbitration awards are generally enforceable in all countries

Answer

Arbitration awards are enforceable only in the country where the arbitration was conducted

Answer

Arbitration awards are not enforceable in any country

Question 19

What is the defining characteristic of ad hoc arbitration?

Accepted Answer

The parties create their own arbitration procedures.

Answer

It is conducted exclusively online.

Answer

It follows a specific arbitration institution's rules.

Question 20

A UK company and a US company are in a dispute over an international sales contract. Which type of arbitration would be most suitable if they prioritize flexibility in procedures and autonomy in decision-making?

Accepted Answer

Ad hoc arbitration

Answer

International arbitration under the ICC Rules

Answer

Litigation in UK courts

Answer

Domestic arbitration in the UK

Question 21

What is a key advantage of institutional arbitration compared to ad hoc arbitration?

Accepted Answer

Provision of administrative support and established rules.

Answer

Generally lower costs and quicker resolution.

Answer

Greater flexibility in arbitrator selection.

Question 22

What is a significant disadvantage of domestic arbitration compared to international arbitration in resolving cross-border commercial disputes?

Accepted Answer

Potential challenges in enforcing the award in different jurisdictions.

Answer

Lack of specialized arbitrators with experience in international trade.

Answer

Higher costs and more lengthy proceedings.

Question 23

Which of these factors is LEAST relevant when deciding between institutional and ad hoc arbitration?

Accepted Answer

The arbitrators' nationalities

Answer

The parties' desire to control the arbitration process

Answer

The parties' budget and time constraints

Answer

The complexity of the dispute and need for specialized expertise

Question 24

What is the primary role of the New York Convention in international arbitration?

Accepted Answer

It facilitates the enforcement of arbitral awards across international borders.

Answer

It establishes standardized rules for conducting international arbitrations.

Answer

It provides a list of qualified arbitrators for international disputes.

Question 25

Which of the following is NOT a standard feature of arbitration agreements?

Accepted Answer

An automatic right to appeal the arbitral award to national courts

Answer

Choice of arbitration location and language

Answer

Selection of applicable law for the contract

Question 26

When might a party prefer litigation in national courts over arbitration?

Accepted Answer

When seeking a precedent-setting judgment.

Answer

When seeking a faster and less costly resolution.

Answer

When confidentiality is a top priority.

Question 27

Which arbitration institution is renowned for its expertise in maritime and commodities disputes?

Accepted Answer

London Maritime Arbitrators Association (LMAA)

Answer

Singapore International Arbitration Centre (SIAC)

Answer

American Arbitration Association (AAA)

Answer

International Chamber of Commerce (ICC)

Question 28

What is the significance of the seat of arbitration in international arbitration?

Accepted Answer

It determines the law governing the arbitration process.

Answer

It dictates the nationality of the arbitrators.

Answer

It automatically makes the award enforceable in that jurisdiction.