• Title/Summary/Keyword: Arbitration costs

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Brief Observation on Arbitration Agreement and Arbitral Award - Focusing on Construction Disputes - (중재합의와 중재판정에 관한 소고 -건설분쟁을 중심으로-)

  • Cho Dae-Yun
    • Journal of Arbitration Studies
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    • v.14 no.1
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    • pp.273-314
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    • 2004
  • There is a belief in the construction industry that the traditional court system may not be an ideal forum to effectively and efficiently resolve construction disputes due to the protracted proceedings and the three tier appeal system resulting in a long delay in the final and conclusive settlement of the dispute, relatively high costs involved, the lack of requisite knowledge and experience in the relevant industry, etc. Hence, they assert that certain alternative dispute resolution ('ADR') methods, such as mediation, conciliation, arbitration or a new system for dispute settlement in the form of any combination thereof should be developed and employed for construction disputes so as to resolve them more promptly and efficiently to the satisfaction of all the disputants concerned. This paper discusses certain merits of such assertions and the need for additional considerations for effective resolution of the construction disputes in light of the complexity of the case, importance of expert witnesses, parties' relationship and non-level playing field of the construction industry and so on. At the same time, however, given the inherent nature of disputes rendering the parties involved in an adversarial position, it would rather be difficult, if not practically impossible, to satisfy all the parties concerned in the dispute. Accordingly, in this study, it is also purported to address the demerits of such assertions by studying the situation from a more balanced perspective, in particular, in relation to the operation of such ADRs. In fact, most of such ADRs as stipulated by special acts, such as the Construction Industry Basic Act of Korea, in the form of mediation or conciliation, have failed to get support from the industry, and as a result, such ADRs are seldom used in practice. Tn contrast, the court system has been greatly improved by implementing a new concentrated review system and establishing several tribunals designed to specialize in the review and resolution of specific types of disputes, including the construction disputes. These improvements of the court system have been warmly received by the industry. Arbitration is another forum for settlement of construction disputes, which has grown and is expected to grow as the most effective ADR with the support from the construction industry. In this regard, the Korean Commercial Arbitration Board ('KCAB') has established a set of internal rules end procedures in operation to efficiently handle construction disputes. Considering the foregoing, this paper addresses the most important elements of the arbitration, i.e., arbitration agreement and arbitral award, primarily focusing on the domestic arbitrations before the KCAB. However, since this parer is prepared for presentation at the construction disputes seminar for the public audience, it is not intended for academic purposes, nor does it delve into any specific acadcmic issues. Likewise, although this paper addresses certain controversial issues by way of introduction, it mainly purports to facilitate the understanding of the general public, including the prospective arbitrators on the KCAB roster without the relevant legal education and background, concerning the importance of the integrity of the arbitration agreement and the arbitral award. In sum, what is purported in this study is simply to note that there are still many outstanding issues with mediation, conciliation and arbitration, as a matter of system, institutional operation or otherwise, for further study and consideration so as to enhance them as effective means for settlement of construction disputes, in replacement of or in conjunction with the court proceeding. For this purpose, it is essential for all the relevant parties, including lawyers, engineers, owners, contractors and social activists aiming to protect consumers' and subcontractors' interests, to conduct joint efforts to study the complicated nature of construction works and to develop effective means for examination and handling of the disputes of a technical nature, including the accumulation of the relevant industrial data. Based on the foregoing, the parties may be in a better position to select the appropriate dispute resolution mechanism, a court proceeding or in its stead, an effective ADR, considering the relevant factors of the subject construction works or the contract structure, such as the bargaining position of the parties, their financial status, confidentiality requirements, technical or commercial complexity of the case at hand, urgency for settlements, etc.

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국제거래(國際去來)에 있어서의 제조물책임(製造物責任)과 그 대응(對應)

  • Gang, Lee-Su
    • Journal of Arbitration Studies
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    • v.10 no.1
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    • pp.92-113
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    • 2000
  • Products liability refers to the liability of any or all parties along the chain of manufacture of any product for damage caused by that product. This includes the manufacturer of component parts (at the top of the chain), an assembling manufacturer, the wholesaler, and the retail store owner (at the bottom of the chain). Products containing inherent defects that cause harm to a consumer of the product, or someone to whom the product was loaned, given, etc., are the subjects of products liability suits. The goal of products liability system should be to maximize consumer welfare by efficiently providing just compensation for injuries incurred and deterring future injuries without unreasonably impeding the supply of the goods and services to consumers. Some advanced countries, apart from relying on products liability systems, also apply other policies and legislation directly aimed at the safety of the consumer. The application of general safety policies as well as products liability rules is not costless. An efficient system will not eliminate risk from society. An efficient system ... that maximises consumer welfare ... maximises the benefits while minimising the costs. Products liability claims can be based on negligence, strict liability, or breach of warranty of fitness depending on the jurisdiction where the claim is based. In view of international business and law circumstances, it should be stressed that international enterprises in Korea should consider how to cope with the situation of international transaction. International enterprises should have a correct perception about products liability which is to contribute the stabilization and improvement of the people's life and the sound develpement of the national economy. Products liability system creates incentives that influence behaviour and performance in ways that are desirable, such as more diligent monitoring to prevent defective products from reaching the market-place. At the same time, any liability system will impose burdens that are undesirable, such as greater costs imposed on business and consumers and reduced avaiability of consumer goods. The concern for society is to balance. The ideal situation is where the cost imposed on producers of goods and services pushes them to a desirable level of care but not so far that producers reach undesirable level of caution that may deprive consumers unnecessarily of the benefits from new and innovative products.

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Communicative Information Technologies and Development Strategies of ODR from the Practitional Perspective (의사소통 정보기술과 ODR발전전략 : 실무적 관점을 중심으로)

  • Chung, Yong-Kyun
    • Journal of Arbitration Studies
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    • v.19 no.2
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    • pp.155-178
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    • 2009
  • The ODR can be categorized into four distinctive types. First type is the asynchronous non-demeanour method. Second type is the asynchronous demeanour method. Third type is the synchronous demeanour method. Fourth type is the synchronous demeanour method. A typical example of the asynchronous and non-demeanour method is e-mail. The example of the synchronous and non-demeanour method is tele conference. The example of the asynchronous demeanour method is video recordings. The example of synchronous and demeanour method is video conference. The primary benefit of e-mail is to avoid the physical violence. But the costs of email is the lack of emotional aspects of disputants. The benefits of tele conference is ease of use, and reduces the negative aspects of face to face communication. but the costs are limitation of the exchange of written information. The benefits of video conference is the approximation of face to face communication by providing oral as well as visual communication. but it is insufficient to represent eye contact. The common limitations of ODR are as follows. First is the lack of human face. Second is the neutrality of arbitrators and mediators. Third is the authenticity of electronic document. Fourth is the digital divide across South and North and generations. Fifth is the cross-cultural communication. The development strategy of ODR is the training and education of arbitrators and mediators in the area of writing skill. Furthermore, it is necessary to supplement the weakness of email via diverse kinds of expressions to show emotions. Finally, it is necessary to train neutrals in the area of cross-cultural communication.

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A Study on CIETEC Arbitration Case for the Relationship between Damages and Reduction under CISG (CISG상 손해배상과 대금감액의 관계에 관한 중국 CIETAC의 중재사례 연구)

  • Song, Soo-Ryun
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.51
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    • pp.133-158
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    • 2011
  • The purpose of this study is to analyze one of CIETEC(China International Economic and Trade Arbitration Commission) Award on the dispute arising from Cotton Sale Contact which deals with damages and reduction of the price. Especially this case focused on the effect of reduction of the price to damages. The purpose of damages is to place the aggrieved party in as good a position as if the other party had properly performed the contract. So court costs and attorney's fee should be regarded as the loss, because these are caused by consequence of the breach which is recoverable. With the same reason, overpaid taxes should also regard as the loss. It is not impossible, however, to claim both damages and reduction of the price for same loss at the same time. It means buyer could not claim damages for the same loss, once he already claimed reduction of the price. So Korean companies should consider which remedy is proper to himself under the circumstances. He should choose reduction of the price when market price is down. In case of rising market price, he should consider follows: first, it is better to choose damages based on current price(Art.76), if upswing of non-conformity price is higher then upswing of market price. Second, it is better to choose general rule for measuring damages(Art.74), if upswing of market price is higher then upswing of non-conformity price.

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MFN Restrictions in Investment Agreements for the Prevention of ISDS Forum Shopping (ISDS 포럼쇼핑 방지를 위한 투자협정상 MFN 배제조항)

  • Hur, Nany
    • Journal of Arbitration Studies
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    • v.28 no.4
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    • pp.173-191
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    • 2018
  • MFN provisions in investment agreements have been a tool for equitable treatment between foreign investors with different nationalities. This non discriminatory principle has been pursued by the host states for further investment promotion. However, it may be abused to bring the situation of so called "ISDS forum shopping" which might harm the stability and predictability of investment agreements by unexpectedly extending the scope of obligations. While some investment arbitral tribunals have interpreted the scope of MFN provision very broadly to allow the ISDS forum shopping, both procedural and substantive provisions have been invoked. To prevent any chaos of unclear boundary of MFN provision, some explicit MFN restrictions which would limit the scope of MFN provision are needed. Indeed, some investment agreements have included these MFN restrictions. Specifically, MFN restrictions deal with both procedural or substantive provisions to prevent ISDS forum shopping. According to the lessons from the recent examples of MFN restrictions, there must be a careful consideration on the benefits and costs of having a certain type of MFN restriction as the parties can be the host state and the home state of their investors at the same time.

A Study on the Disputes and its Improvement in the Process of Producing Digital Music Source (대중음악 음원제작과정에서의 분쟁발생과 그 개선점에 대한 고찰)

  • Kang, Da-Hye
    • Journal of Arbitration Studies
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    • v.27 no.2
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    • pp.59-81
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    • 2017
  • The purpose of this study is to find a solution to disputes in the process of producing digital music sources. At present, the center of the world music market including the domestic market has been completely transformed from the tangible musical record market to the intangible sound source market. Due to these environmental changes, the music production process becomes industrialized and specialized, causing conflicts of interest among the individuals in the process. First of all, this study examined changes in the music market which is the background of the dispute, identified the problems of the process and suggested solutions while summarizing the meaning and role of each process of producing a sound source that may arise during the sound production process. This study covers plagiarism between producers, copyright infringement of the creator against assistant creator caused by the industrialization and division of the production environment, issues related to the rights of sound engineers whose role and importance become bigger as acoustic technology develops and music genres become more diverse, and vertical hierarchy due to the formation of oligopoly by several distributors with huge capital. As a result of the study, it was concluded that Alternative Dispute Resolution (ADR) system is suitable for solving these problems. Specific methods of using ADR include activation of the dispute settlement system of the Korea Copyright Commission, active use of the arbitration clause specified in the standard contract, and recalculation of labor costs and earnings from copyright through mutual negotiations. This paper can be differentiated from previous studies in that it studied overall problems that might arise in the process of digital music source production and suggested ADR utilization as the solution.

Review and Improvement of Alternative Medical Dispute Resolution Through Case Studies (사례연구를 통한 소송이외의 의료분쟁 해결방안의 검토와 개선방안)

  • Kang, Eui Sung;Kim, Jang Mook;Sung, Dong Hyo;Mok, Nam Hee
    • Korea Journal of Hospital Management
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    • v.18 no.3
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    • pp.106-125
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    • 2013
  • Medical litigation, as a method of resolving medical disputes, has been a huge burden on both the patient and medical institution as it is both costly and time-consuming. The Korea Medical Dispute Mediation and Arbitration Agency has created a dispute mediation process as a method of alternative dispute resolution(ADR). Being in its early stage of implementation, there are still areas requiring improvement as some functions overlap with the Korea Consumer Agency's damage redress and mediation process. This study examines the problems of existing practices in medical litigation while reviewing the mediation process of the two agencies from legal/administrative aspects, and provides an in-depth analysis of the situation through case studies and interviews. While the Korea Medical Dispute Mediation and Arbitration Agency offers many advantages in resolving medical disputes, there must be a distinct division of roles and mutual cooperation with the Korea Consumer Agency. Considering the increasing amount of compensation in medical disputes, medical professionals are being requested to carry medical malpractice insurance. However, this has yet to become a general trend in the medical field despite the growing social demand. As such, the coverage of medical malpractice insurance should be expanded to prevent medical accidents from escalating into medical disputes, thus acting as a social safety net. This study seeks to examine the methods of medical dispute resolution and to allow institutional provisions to reduce the social costs arising from such disputes.

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Implementation of a Blockchain-based Talent Trading Platform to Reduce Transaction Costs (거래 비용 절감을 위한 블록체인 기반 재능거래 플랫폼)

  • Yang, Seonghun;Jin, Hoe-Yong;Kim, Sang-Kyun
    • Journal of Broadcast Engineering
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    • v.25 no.6
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    • pp.922-934
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    • 2020
  • The talent trading platform is a platform that brokers transactions such as program coding, media content production (video, music, presentation materials, etc.), design, learning, and repair. Existing talent trading platforms provide a server-client model-based service, which incurs server operating costs and arbitration labor costs for transactions, which has a disadvantage that users bear high service fees. This paper proposes a method to reduce server and database operation costs by uploading transaction information to blocks through the system as a distributed app (dApp) based on the Ethereum platform. In addition, it proposes a method to lower transaction fees by reducing the labor cost of transaction arbitrators through smart contracts. Compare and analyze the cost processing procedure and transaction fee size of the blockchain-based talent trading platform and the existing talent trading platform.

New gTLD Program: Uniform Rapid Suspension System and Trademark Clearinghouse (신규 일반 최상위 도메인의 도입과 통일신속정지제도(URS)에 대한 연구)

  • Park, Yu-Sun
    • Journal of Arbitration Studies
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    • v.21 no.2
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    • pp.113-131
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    • 2011
  • Recently, the Internet Corporation for Assigned Names and Numbers (ICANN) announced the expansion of the number of generic top-level domains (gTLDs) beyond the current 22 gTLDs, and the gTLD Applicant Guidebook for ICANN's new gTLD program is now under consideration for approval. ICANN also introduces a "Trademark Clearinghouse" and the "Uniform Rapid Suspension (URS)" procedure to protect trademarks and expedite dispute resolution and save costs. The Trademark Clearinghouse is a central repository for information to be authenticated, stored and disseminated, pertaining to the rights of the trademark holders. Trademark holders would voluntarily provide data of their trademarks from all over the world, and it would assist a trademark watch service provided by the new gTLD registry for trademark holders and potential domain name registrants. The URS is a part of the new gTLD dispute resolution mechanisms created by ICANN to resolve cybersquatting disputes. A complainant in a URS proceeding must establish three elements that are very similar to the existing UDRP to succeed, but supposedly more expedited and cost efficient. Since the URS provides that it only protects court validated and registered trademarks, it is not clear whether unregistered marks used in commerce are protected under the URS. The URS escalates the complainant's burden of proof from a preponderance of evidence standard under the UDRP to a clear and convincing evidence standard. The notices to a respondent shall be sufficient if the URS Provider sends the notice of Complaint to the addresses listed in the Whois contact information. As registrants who wish to conceal their true identity often subscribe to the privacy/proxy service and the complainant's high rate of success in the UDRP proceeding is relevant to the respondents' default rate, the URS's simple notice requirement would deprive respondents of a fair opportunity to assert their rights over the disputed domain names.

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Dispute Resolution by e-ADR for e- Trade in the Northeast Asia (동북아 e-Trade 활성화를 위한 e-ADR에 의한 분쟁해결에 관한 연구)

  • 최석범;박종석;정재우
    • Journal of Arbitration Studies
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    • v.12 no.2
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    • pp.185-220
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    • 2003
  • Korean Government is increasingly focusing on the Northeast Asia Business and Logistics Hub strategy to create a competitive advantage. A key element of this strategy is creating or leveraging distribution and logistics hubs that act as centres for distribution in Northeast Asia. A Northeast Asian e-Hub Policy is required for business hub and logistics hub in the Northeastern Asia. An e-Hub is an integrated, sophisticated set of e-Biz, information and e-trade facilities and services that provides access to a marketplace and exchangee the e-trade data. To study the e-Hub policy, Pan Asian e-Commerce Alliance, Korea-Japan e-Trade Hub project, and ASEM e-Trade project are considered. E-trade via cyberspace may need new methods of dispute resolution to reduce transaction costs for small value-related disputes and to erect structures that work well across national boundaries. Voluntary Mediation Councils and cyber tribunals should be encouraged by governmental sectors to continue developing private sector mechanisms to resolve e-trade disputes. Government-sponsored online cross-border dispute resolution systems may be also be useful to complement these private sector approaches. E-trade in Northeast Asia results in disputes owing to the incompleteness of e-trade law in the countries. These disputes contain disputes regarding e-trade model, central title registry, authentication body. To resolve these disputes in the Northeast Asia, a variety of electronic alternative dispute resolution bodies must be organized under cooperation of Korea, Japan, China. This study deals with the e-ADR construction in the Northeast Asia to resolve the disputes in the e-trade and to activate the e-trade in the Northeast Asia.

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