Pros And Cons Of The Federal Law On International Commercial Arbitration

Arbitration is defined as the process of bringing an unbiased third party into a disagreement to render a legally binding judgment. The United States Congress enacted The Federal Arbitration Act which requires judicial enforcement of a wide range of agreements to arbitrate claims. This means that if a contract contains a clause requiring arbitration of certain claims but one of the parties attempts to litigate such a claim in court, the court is very likely to dismiss the case and compel arbitration of the dispute (Mallor, 2012). The Federal Law on International Commercial Arbitration, 1993 (Russian Arbitration Act) governs international commercial arbitration throughout the entire territory of Russia. It was introduced to make international commercial

Arbitration can be cheaper than litigation. Determining a case through arbitration is frequently far less expensive than going through a court case because the procedure is faster and commonly less intricate than a court proceeding. Arbitration can be faster than litigation, also. What may take years in court may be reduced to simply months in arbitration. Arbitration hearings are flexible; they can typically be planned around the requests and availabilities of those concerned, counting weekends and evenings. Arbitrations have Simplified rules of evidence and procedure. In arbitrations, most matters, such as who will appear as a witness and what documents must be provided, can be taken care of with a simple phone call. Lastly, arbitrations are Private. Arbitration proceedings are usually held in private. And parties occasionally agree to keep the proceedings and terms of the concluding ruling classified. Both of these precautions can be an advantage if the topic of the dispute might cause some humiliation or divulge private