The redemption system for consumer's claim is intended to deal with the conflicts between consumers and firms in their transaction of goods and service ensuring consumer's basic right. In general, the redemption system for consumer's claim requires promptness of redemption, free charge of claim procedure for consumers and constructive response of firms. However, the current redemption system in Korea has some limitations in its authority in the sense that it has only the right for mediation of consultation and agreement and thus the involved consumer should forfeit his/her claim or should go to legal suit which requires high cost and time when the mediation work is failed between two parties. As it is shown in result of survey on empirical cases produced by the Consumer Dispute Mediation Committee in Consumer Protection Board of Korea in 2001, the 20.3% of total claims have failed to reach final mediation, while the BBB case in the U. S. has recorded 19% of arbitration success after its failure in mediation. Therefore, it is strongly recommended for Korea to augment current. arbitration system toward assuring firm's cost liability, the principle of quick procedure through agreement on arbitration upon consumer's request. It is thus prerequisite for firms to be armed with the concrete entrepreneurship of responsibility on cost liability. In conclusion, we suggest restructuring of currently existing institution, rather than establishing new one through substantial augmenting the role of Consumer Dispute Mediation Committee In Consumer Protection Board of Korea and enlarging its business criteria of The Korean Commercial Arbitration Board by progressive development of the consumer protection program through amendment of current law for consumer protection.
Ever since franchising emerged in the industry of distribution, it has been growing explosively in the U.S.A. and all other countries as well. It is a method of expanding a business by licensing independent businessman to sell the franchiser's products and/or services or to follow a format and trade style created by the franchiser using the franchiser's trade marks and trade names. Franchising is a form of business that touches upon many different areas of law including, but not limited to, general contract law, general principles of commercial law, law of intellectual property, competition law, fair trade practices law and other industry specific laws e.g., the Fair Practices in Franchising Act in Korea. Arbitration is a long established, legally recognized procedure for submitting disputes to an outside person(s), mutually selected by the parties, for a final and binding decision. Despite its merits as an alternative dispute resolution, it has been criticized, on the other hand, particularly by franchisees' attorneys on the ground that even though it is required to protect the franchisees against the enforcement of pre-dispute arbitration agreements because of the franchisees' paucity of bargaining power vis-a-vis the franchiser, arbitration cannot afford it. Until recently, however, little has been written about the legal issues pertaining to franchise agreement and arbitration clause contained therein in Korea. This treatise reviews the cases and arguments in relation to the subject especially of the U.S.A., which have been accumulated for decades. The issues addressed herein are the pre-emption by the FAA, the disputes to be arbitrated, the selection and qualification of arbitrators, the place of arbitration hearings and the evidentiary rules applicable, the expenses of arbitration, theory of fiduciary duty and the like, all of which are relevant to franchise agreement.
The purpose of this paper is to introduce the arbitral proceeding system in Indonesia. Arbitration in Indonesia is governed by Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (Arbitration Law). Also, the Indonesian National Board of Arbitration (BANI) is the main arbitration body in Indonesia. BANI handles both domestic and international disputes. BANI has published its Rules of Arbitral Procedure (the BANI Rules). Within a period of not longer than 30 days after receiving the petition for arbitration, the respondent must submit its reply. Also, if the respondent wishes to assert against the claimant a counter-claim in connection with the dispute, the respondent may submit such counter-claim together with its statement of defense no later than the first hearing. This paper suggests that the following may be some of the disadvantages to using arbitration under the BANI Rules. The first is that final decision or approval regarding the designation of all arbitrators shall be in the hands of the Chairman of BANI. It is the chief problem facing the international stream of arbitration systems. The second is that arbitrators must have certain minimum qualifications. BANI Rules provide the same requirements for the qualifications of the arbitrators as the Arbitration Law. The third is that the BANI Rules require arbitrators in BANI-administered references to be chosen from BANI's list of arbitrators. BANI can also consider a recognized foreign arbitrator if the foreign arbitrator meets the qualification requirements and is prepared to comply with the BANI Rules. This includes the requirement that the appointing party must bear the travel, accommodation, and other special expenses related to the appointment of the foreign arbitrator.
International commercial arbitrations have developed into a simple form in which both parties involved in the dispute by a contract intend to solve the dispute through the legal arbitration system. however nowadays the above traditional form taken by international projects are rarely seen and instead the form of complex arbitration in which many parties are involved has become more and more universal. The complex arbitration means not only many-sided parties concerned but also means a plural number of contract involved in conflicts, a plural number of issues involved in conflicts and a plural number of contracts though their contractors are not in a plural number. However in this report the complex arbitrations will be studied into categories as follows : 1. Pure multi-issue situations, 2. Pure multi-party situations, 3. Pure multi-contract situations. A Pure Multi-Issue arbitration basically includes a plural number of claims between the two parties concerned. A Pure Multi-party case classically presupposes an arbitration clause which involves a plural number of parties concerned. After Party A takes a legal proceeding and then Party B institutes a request to Party C in the above proceeding. In that case the problem arises on whether it is allowed to do so or not. A Pure Multi-Contract case presupposes that when Party A and Party B have independent arbitration clauses based on separate contract relations, respectively, the problem is whether both above-mentioned proceedings can be unified into one or not. As for the above-mentioned complex arbitration, though international treaties are being formed, including the WTO treaties, the NAFTA treaties, the Mercosur treaties and others, legal regulations and customs have not yet been formed domestically. The institutional preparations will be necessitated in consideration of national legal status as well as international treaty relations.
This study is aimed at drawing up improvement measures in connection with the resolution of claims, one of the major constraints in revitalizing South-North Korean economic cooperation. To that end, we first looked at the structure of South-North Korean economic cooperation and the institutional status related to resolving the claims. Also we analyzed the current status of the claims in the process of promoting South-North Korean economic cooperation by companies and the provisions of the claims between the parties in order to derive any problems. Through these research results, we were able to identify directions and implications for efficient improvement of the causes of several South-North Korean economic cooperation claims. First, at the corporate level, there is a need to create specific details of a contract for resolving disputes and to add additional third-party coordination functions in the relevant clause of the contract in preparation for the occurrence of a dispute. In addition, it is necessary to seek ways to advance jointly with corporations in China and other third countries in order to secure stability. Second, the government should continue to discuss ways of promoting South-North Korean commercial arbitration with North Korea so that follow-up measures can be completed as soon as possible. In addition, a two-track strategy is suggested to provide a practical negotiation channel at the private level. Also it is necessary to be active in persuading North Korea to join the international arbitration treaty in preparation for the activation of full-fledged economic exchanges.
The obligation on a national court to recognize and enforce arbitral awards as provided in Article III New York Convention, which both Korea and China have ratified, is subject to limited exceptions. Recognition and enforcement will be refused only if the party against whom enforcement is sought can show that one of the exclusive grounds for refusal enumerated in Article V(1) New York Convention has occurred. The court may also refuse enforcement ex officio if the award violates that state's public policy. This article explores the circumstances where arbitral awards may be refused enforcement under the Korean and Chinese arbitration laws. It first analyzes the relevant statutory provisions. In Korea and China, which have adopted the UNCITRAL Model law, the grounds of challenge are exhaustively defined within their respective arbitration laws. According to their arbitration laws, an arbitral award may be set aside if a party making the application proves that (i) a party to the arbitration agreement was under some incapacity or the agreement is not valid under the applicable law, (ii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case, (iii) the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or contains decisions on matters beyond the scope of the submission to arbitration, or (iv) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties. An arbitral award may also be set aside ex officio by the court if the court finds that (i) the subject-matter of the dispute is not capable of settlement by arbitration under the applicable law or (ii) the award is in conflict with the public policy. This article then reviews relevant judicial decisions rendered in Korea and China to see how the courts in these countries have been interpreting the provisions specifying the grounds for challenging arbitral awards. It concludes that the courts in Korea and China rarely accept challenges to arbitral awards, thereby respecting the mandate of the New York Convention.
ADR program is designed to solve the problem such as the increase of suits and decision delayed. ADR program has the several significances, decreasing inappropriate cost as time and burden of courts, providing an approachable measure of relief and more efficient tool for settlement of dispute. Particularly ADR program satisfies the needs Intellectual property disputes need specialists that are versed in the subjected problem and, need to be souled quickly in confidence. And parties concerned are not good at the strict judicial procedure in courts, At this point, ADR program holds some advantages over court proceeding for intellectual property disputes. Specialists can be selected as arbitrators or mediator; Cofidentiality may be preserved; Flexibility allows settlement based on mutual commercial interests; Single solution is possible for multiple disputes involving parties from different countries. However, ADR program has not been properly used in. Korea, which is due to not only the lack of understanding the ADR program, but the poor number of filings and settlements. Intermediaries are not professional and also they do not take active hands in disputes. Sometimes, their fairness is asked as peacemakers. Eventually, it is said that this program is not enough to settle international disputes. To activate the ADR program, we can propose the ADR program annexed to court for example. And we can introduce the conciliation and arbitration to disputes in intellectual property. Traditionally arbitration has been a crucial issue in intellectual property disputes. In that intellectual property rights are granted by the local sovereign power, many legal systems in the past maintained the position that the existence, extent, meaning and application of such rights could only be definitively decided by the granting authority or the courts of that country. There is wide recognition that the arbitration of intellectual property is desirable. The law in most of the major countries has been changed in recent years in favor of arbitrability of intellectual property rights. We can also propose ADR on-line.
As our society and industry develop, disputes are becoming ever more complicated and diversified to the point that it is alleged that dispute resolution by court proceedings has certain limits and setbacks. Therefore, it is commonly suggested that mediation by a qualified mediator should come as an alternative method, and there have been many attempts to establish and provide mediation service in the courts and government authorities. To comply with a party's autonomy, which is the essential basis of mediation, and to promote the use of mediation, it is highly recommended that private mediation, rather than court-driven or administrative mediation, shall take the initiative. In the meantime, despite a number of academic research and attempts to increase the awareness and use of mediation nationwide, we have not yet seen meaningful developments due to the longstanding misunderstanding and discredit of mediation. In contrast, Italy has begun to revitalize mediation by enacting 'Legislative Decree No. 28/2020' following the 'Directive 2008/52EC' of the European Parliament and encouraging the so-called via-mediation policy. It is acknowledged to have significantly contributed to the development of private mediation in Italy and the increased use of mediation as a dispute resolution method. It shall be particularly noted that Italy's mediation proceedings have certain traits, including preliminary mediation meetings, mandatory involvement of legal counsel, and tax benefits for the settled cases by mediation. Italy's efforts would provide people with meaningful lessons and perspectives. As society strives to promote private mediation to distribute and utilize the judicial resources' inefficient ways, institutions need to develop practical measures to increase the number of civil and commercial disputes in the mediation proceedings. To that end, legislative efforts to enact relevant laws necessary to provide incentives to disputing parties and establish integrated education and certification programs to train qualified mediators need to start soon.
The International Chamber of Commerce has been the world's leading organization in the field of international commercial dispute resolution. Established in 1923 as the arbitration body of ICC, the International Court of Arbitration has pioneered international commercial arbitration as it is known today. The ICC International Court of Arbitration is the world's foremost institution in the resolution of international business disputes. While most arbitration institutions are regional or national in scope, the ICC Court is truly international. The purpose of this paper is to examine their advantages and to introduce main contents provided in ICC Rules of Arbitration as follows; First, before the actual merits of the case can be addressed, the Arbitral Tribunal must first draw up the Terms of Reference. The Terms of Reference should include the particulars listed in the ICC Rules. Apart from the full names and description of the parties and arbitrators, the place of arbitration and a summary of the parties' respective claims, they contain particulars concerning the applicable procedural rules and any other provisions required to make the Award enforceable at law Second, the Scrutiny is a fundamental feature of ICC arbitration and is one that distinguishes it from the other major international arbitration rules. The scrutiny system has two aspects ; the first is to identify or modify the defects of form, while the second is to draw the arbitrators' attention to points of substance. Third, as soon as practicable, the Court fixes an advance on costs intended to cover the estimated fees and expenses of the arbitrators, as well as the administrative expenses of ICC. Specially, the advance on costs fixed by the Court shall be payable in equal shares by the Claimant and Respondent. Finally, the parties are also free to select the arbitrator or arbitrators of their choice. The Court or the Secretary General confirms arbitrators nominated by the parties. Taking a step forward, to upgrade the quality of the award of KCAB, it is desirable to consider how to incorporate the main contents of the ICC Arbitration into Korea Commercial Arbitration Rules.
I. Preface It is widely understood that the 21st century, with the development of information technology(IT) and the spread of networks, will be called a digital economy where information-driven business will be norm rather than the smokestack economy of the past. And the drastically changed world market is expected to generate even more commercial transactions across the world creating large numbers of legal disputes. Therefore, each country will attempt to develop ADR(Alternative Dispute Resolution) as an alternative to judicial proceedings in order to cope with not only the ever-increasing international commercial claims but also domestic legal disputes. Taking this reality into account, this study begins with an exploration of mediation procedure as a way of helping the court faced with its overwhelming numbers of lawsuits. And also this study makes a theoretical comparison between ADR and mediation procedure, analyzing critical factors affecting the mediation agreement. Furthermore, it is designed to find ways for disputing parties to make better use of mediation and ensure fairness to the parties involved. It tries to enhance mediators' understanding of critical factors influencing the mediation agreement and their ability to handle commercial disputes in a more efficient way. To make an empirical analysis of these factors, bibliographic research and questionnaire were used. This analysis will fill the gap between the theory and reality, and make possible the structured research on the factors. Therefore, this study sets the model by which we can evaluate how the three critical factors (parties' inclination, mediators' characteristics, institutional features) affect the parties reaching a mediation agreement. Based on this analysis, a theoretical hypothesis was built and a questionnaire was made and distributed. During the course of this work, SPSSWIN 10.0 program was applied.
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