Self-Regulation effectiveness in Incorporating Commercial Norms - Case Study Example

It has been propounded that “The satisfactory resolution of disputes is a key issue for any society” (Moody, S.R., 1995) and as such, “Litigation has traditionally been regarded as the dispute resolution procedure par excellence” (Moody, S.R. 1995). However, litigation has not been without its problems and research has indicated that that litigation was too expensive often surpassing the value of the claim and it was impossible to adequately predict the cost of litigation and the length of time it would take, perpetuated by consistent delays in bringing cases to a conclusion (Roney, J.H., 1999).

From a commercial perspective, particularly in the realm of international contractual agreements, the role and importance of international arbitration raises two central issues, namely the rationale behind arbitration as a concept and the justification for arbitration as an effective method for solving commercial dispute (P. Friedland, 2007). Secondly, the underlying “importance” of arbitration directly links to the role of international commercial arbitration in the enforceability of judgments (P.

Friedland, 2007). Indeed, Graffi has observed that “there is little doubt that the arbitration agreement is the pillar of international arbitration” (L. Graffi, 2006).However, the importance of successful arbitration is inherently dependant on the willingness of parties to the arbitration agreement to enter into this method of alternative dispute resolution and is reliant on international treaties and “pro-arbitration” legislation around the world (L. Graffi, 2006). The central issue of contention associated with international arbitration is appropriate jurisdiction and differences in procedural, substantive results differing from country to country (G.

Herman, 1994).