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You can generally include an arbitration term in contracts. Arbitration can be cheaper and faster than suing. In some cases, arbitration can be even more bindin

by wisty 15y ago

You can generally include an arbitration term in contracts. Arbitration can be cheaper and faster than suing. In some cases, arbitration can be even more binding. Point in case - you get a contract with a Chinese company, and state that the appropriate court for all claims is in your home town, in California. You sue the company, and win (as they don't even show up). Then you go to the Public Security Bureau (police) office in their town, and ask them to help size assets. The Chinese police will ask for a Chinese court order, but when you go to a Chinese court they tell you that your contract explicitly states that you should be back in California, and they have no right to intervene. On the other hand, if the contract is worded right, international arbitration treaties will kick in (so the Chinese courts should accept the arbitration decision), basically everyone worth speaking of has signed them. At least, that's my (unprofessional) impression from reading the China Law Blog (i.e. http://www.chinalawblog.com/2010/02/arbitration_in_your_china_cont.html http://www.chinalawblog.com/2010/02/arbitration_in_your_chin...) But I am not a lawyer, and this is not advice.

bigwally 15y ago
Arbitration can be a bitch. The Arbitration company has a tendency to rule in favor of whoever is going to bring them the most repeat business.
- wisty 15y ago
  Can you expand, a bit? Arbitration can be of a lower standard. The arbitrator will probably be a lawyer, but not a judge. And standards of evidence can be much lower. I doubt that there are many arbitration companies siding with someone just to get repeat business. That might depend on the scale of business though. For two small businesses, I can't see how it would be a big deal. If a company the size of IBM nominates an arbitrator, I might be suspicious.
  - bigwally 15y ago
    Expand I will. >I doubt that there are many arbitration companies siding with someone just to get repeat business. http://en.wikipedia.org/wiki/Jamie_Leigh_Jones http://en.wikipedia.org/wiki/Jamie_Leigh_Jones ctrl-F arbitration
    - wisty 15y ago
      Arbitration has its place. Maybe it shouldn't be legal to have mandatory arbitration clauses in employment contracts, or in other contracts without genuine negotiations of the terms. A non-negotiable clause for a contractor going to Iraq is a whole world away from two companies negotiating a contract to construct a web site or something.

by wisty 15y ago

bigwally 15y ago

Arbitration can be a bitch. The Arbitration company has a tendency to rule in favor of whoever is going to bring them the most repeat business.

wisty 15y ago
Can you expand, a bit? Arbitration can be of a lower standard. The arbitrator will probably be a lawyer, but not a judge. And standards of evidence can be much lower. I doubt that there are many arbitration companies siding with someone just to get repeat business. That might depend on the scale of business though. For two small businesses, I can't see how it would be a big deal. If a company the size of IBM nominates an arbitrator, I might be suspicious.
- bigwally 15y ago
  Expand I will. >I doubt that there are many arbitration companies siding with someone just to get repeat business. http://en.wikipedia.org/wiki/Jamie_Leigh_Jones http://en.wikipedia.org/wiki/Jamie_Leigh_Jones ctrl-F arbitration
  - wisty 15y ago
    Arbitration has its place. Maybe it shouldn't be legal to have mandatory arbitration clauses in employment contracts, or in other contracts without genuine negotiations of the terms. A non-negotiable clause for a contractor going to Iraq is a whole world away from two companies negotiating a contract to construct a web site or something.