Arbitration and Law Essay Example | Topics and Well Written Essays - 3250 words

Arbitration and Law - Essay Example The problem, however, is that even when arbitration takes place, the disputing parties will continue to engage the problem through additional courts in order to come to the best possible resolution for their interests. The following essay discusses the issues of arbitration, first by engaging the question of disputes in arbitration and the consequences to the courts, then through the exploration of a case study, and then finally through undergoing an investigation of the events within the case study. Privity of Contract Privity, in legal terms, refers to a relationship that develops between parties in regard to the property, promises or warranties of a contract. The privity of contract concept is to ensure that only parties that are involved in a contract are actually part of the entirety of the process and included in all subsequent actions. Disputes concerning the privity of contract result from engaging the contract for who is able to participate in the process. The limitation of privity prevents a great many lawsuits by those who believe they have been affected by the actions of a party, but who is not directly a part of the contract and are not able to create liability claims because they are not a part of the contract.1 Horizontal and Vertical Privity Horizontal privity occurs when a third party is the recipient of an item. When an item or benefit in question is intended for a third party, then horizontal privity is in place. Vertical privity occurs when an independent contract is in place with one of the parties of a contract between two parties. If A has a contract with B and B has a contract with C, vertical privity is in place between A and C. The consumer rarely has any rights in terms of privity. The laws in regard to consumers was revised in the Contract Act of 1999 in which the Rights of Third Parties were addressed so that â€Å"...a third party may not enforce a contractual provision, either if the contract contains an express term to that effe ct, of if it purports to confer a benefit upon him†.2 The problem with consumer relationships to the process is that there is no implied position within the contract for the consumer. Arbitration Arbitration is the process by which two parties enter into an agreement to choose privately defined proceedings in which to settle their differences. The arbitration process is internationally recognized as a resource through which disputes between internationally represented businesses can find resolutions without clogging court systems and without disputes about jurisdiction in regard to nation.3 Disputes are defined by any disagreement that occurs during the process of the contract relationship. Disputes are more often handled by arbitration that has been defined within a contract. According to Harris, Planterose, and Tecks, â€Å"This will distinguish the procedure, the application of any statute and the finality of the intended process from other options, such as a decision by a ny expert of adjudication†