国际贸易实务Inspection.pptVIP

Learning Objectives Understand the definition and the characteristics of Arbitration Learn the importance and contents of arbitration agreement or clause Contents When disputes arise between the seller and the buyer, there are four ways to settle down in sequence: negotiation, conciliation, arbitration and litigation. Friendly negotiation and conciliation are the most popular ways in the process of dispute settlement, which are able to maintain friendship between the exporter and the importer. When negotiation and do not work, should the two parties turn to and . Litigation, a process in law instituted by one party to another to do him justice is usually costly and time-consuming. Compared with litigation, arbitration is a better alternative. In this section, we are going to have a further introduction on arbitration. Section 1 Definition of Arbitration Arbitration refers to that the two parties, before or after the disputes arise, reach a written agreement that they will submit the disputes which cannot be settled through amicable negotiations to a third party for arbitration.Both parties shall settle the disputes complying with the result of arbitration as the arbitration result has legally force. Section 2 Characteristic of arbitration 1. An arbitral body composing of dignitaries or experts in the field is set to settle trade disputes, neither a governmental power nor with a coercive jurisdiction. The settlement of the case is based on the will of both parties involved. 2. The parties involved shall sign an arbitral agreement before resorting to arbitration.The parties involved are granted with the right to choose the arbitrators. 3. Arbitration is simpler in procedures, less costly and time consuming than litigation. 4. An arbitral verdict has a legally binding force,and is usually final, and binding upon both pa