International Arbitration and Islamic Law or Sharia Law - Dissertation Example

Download file to see previous pages There may be also the generation of stipulations attached with the confidentiality of the proprietary information, evidence, backdrop, number of arbitrators, issues attached with the arbitration, and so on (Kohler & Stucki, 2004). Among the various definitions of arbitration one of the definitions can be mentioned in this case which is as follows:
“ two or more parties, faced with a dispute which they cannot resolve for themselves, agreeing that some private individual will resolve it for them and if the arbitration runs its full course….it will not be settled by a compromise, but by a decision” (Born, 2009, p.217).

History of arbitration
Arbitration finds its roots in Greek mythology as well as in the Bible (Moloff, 2008, p.186). In the maritime industries of pre-colonial England as well as within the merchants of diverse trade backgrounds, the process of arbitration found its profound utilization. Prior to the industrial revolution, the process of arbitrage was highly predominant among the American colonies and the process was regarded as inexpensive and highly private although a voluntary mode is highly dependent on the ties of the communities as well as pressures for the effectiveness of the policies. The first permanent board of arbitration was established in 1768, by the New York Chamber of Commerce followed by the implementation of the primal comprehensive clause of arbitration although the availability was limited to a restricted number of disputants (Wolfe, 2006, p.432).

The scenario widened its horizon with the herald of the twentieth century with the necessity of making the process of arbitration an alternative method of dispute resolution. The process strengthened with the creation of the organized labor movement. In 1925, the United States Congress enacted the New York Federal Arbitration (FAA) with the notion that the agreements to submit disputes to arbitration should be as enforceable as any other contracts (Brunet, 2006, p.36). With the gradual crawling of time, after the 1950s, lawmakers stressed that the process of arbitration can be implemented as a device for resolving international disputes.

In 1998, Congress enacted the Alternative dispute Act (ADA) which led to the mandatory equipment of every federal district court for authorizing by local rules, the utilization of the alternative dispute resolution process in all civil actions, and also led to the designation of a judge or other employee to be knowledgeable in ADR (Alternative Dispute Resolution) practices. In today’s world of complex legal milieu majority of the lawyers and litigators find it compulsory for the application of ADR processes with the arbitration in particular (Bennett, 2009, pp. 9-12).

The basic foundation for arbitration
The basic foundation on which arbitration rests is that of the consensual nature embedded in it. No arbitration procedure will take place without the express consent of each party. The prerequisite of a consensual arbitration agreement can be inspected as an assemblage of procedures that directs to the avoidance of the default jurisdiction of the domestic courts and hence it must be clearly demarcated. In most cases, the agreement of arbitration will require writing in order for the process to be effective. ...Download file to see next pages Read More