Programme 2 Arbitration and Dispute Settlement

1. Programme 2 Arbitration and Dispute Settlement

2. Objectives: • ● Learn how to deal with arbitration and dispute; • ● Know the procedures of arbitration and dispute settlement; • ● Practice listening for specific information; • ● Practice communicating with business partners. • Skills: • ●Deal with the problems concerning arbitration and dispute settlement in an appropriate way.

3. Words and phrases • 1. indispensable adj. 不可缺少的，必需的 • 2. Dispute Settlement Mechanism, DSM 争端解决机制 • 3. judicial adj. 司法的 • 4. multilateral adj. 多边的 • 5. Dispute Settlement Body, DSB 争端解决机构 • 6. administer v. 管理，治理 • 7. consultation n. 协商 • 8. panel n. 专家小组 • 9. appellate adj. 上诉的

4. Words and phrases • 10. appellate body 上诉机构 • 11. implementation n. 执行 • 12. execution n. 执行 • 13. mutually adv. 相互地 • 14. priority n. 优先，优先权 • 15. panelist n. 专家组成员 • 16. impartial adj. 公平的，公正的 • 17. submit v. 递交，呈献 • 18. comply v. 遵守，服从

5. Words and phrases • 19. adjudication 裁决，判决 • 20. suspend v. 取消 • 21. concession n. 让步，妥协 • 22. appellee n. 被诉方 • 23. retaliation n. 报复 • 24. appellant n. 上诉方 • 25. abide v. 遵守，信守 • 26. award n. 裁决，裁定

6. Brief Introduction • As an indispensable part of WTO, DSM (Dispute Settlement Mechanism) has created a new judicial mechanism under the global multilateral economy system. DSM has its own Dispute Settlement Body (DSB) which is consisted of all WTO members and administers dispute settlement procedures. Generally, there are four basic phases in the WTO dispute settlement process: consultation, a panel phase, appellate body review, and the implementation process.

7. Brief Introduction • When a dispute arises from the execution of WTO agreement among the members, solution mutually acceptable to the parties through consultation is of high priority. However, if the consultation between parties fails to settle the dispute within sixty days, the complaining party may request the formation of panel.

8. Brief Introduction • Three panelists outside the involved parties compose a panel unless the parties agree to have five panelists. They must keep objective and impartial throughout the whole proceedings. “The panel shall submit its findings in the form of written report to the DSB.” As a general rule, it shall not exceed six months from the formation of the panel to submission of the report to the DSB.

9. Brief Introduction • The DSB establishes a standing Appellate Body that will hear the appeals from panel cases. The Appellate Body “shall be composed of seven persons, three of whom shall serve on any one case.” The Body shall consider only “issues of law covered in the panel report and legal interpretations developed by the panel.”

10. Brief Introduction • The parties involved must comply with the final panel or appellate body report. If any party refuses to comply or implement the adjudication within “a reasonable period”, punishment may involve suspending that member’s concession or canceling MFN treatment.

11. Brief Introduction • If the appellee is against suspending concession (retaliation) or if it thinks the appellant does not abide by the relevant principles or procedure when it conducts retaliation, the appellee can ask for arbitration, and the arbitration award is final.

12. Business Conversations • Conversation 1 What if There Is a Dispute

13. Words and phrases • 1. arise from 由……引起 • 2. transfer n. 转让 • 3. lease n. 租赁 • 4. patent n. 专利，专利权 • 5. trade mark n. 商标 • 6. infringement n. 侵权 • 7. came into effect 生效，实施 • 8. enable n. 使能够

14. Words and phrases • 9. evidence n. 证据 • 10. applicable n. 适当的，适用的 • 11. appeal n. 上诉 • 12. conciliation n. 调解 • 13. in accordance with 根据 • 14. clause n. 条款 • 15. informative n. 长知识的，长见识的

15. Notes • 1. transportation of goods 货物运输 • 2. transfer of technology 技术转让 • 3. how about ……怎么样。这是打听情况或询问消息的常用语，等于what about。 • 4. patent and trade mark infringement 专利与商标侵权 • 5. the Arbitration Fee Schedule 仲裁收费表 • 6. evidence concerning the case 有关案件的证据 • 7. according to the applicable legal principles 根据适用的法律原则 • 8. in accordance with the arbitration clause 根据仲裁条款

16. Task 1 Listen to the conversation 1 and fill in the blanks.

17. The Key to Task 1 • 1. just at the beginning • 2. some sort of dispute • 3. in other countries • 4. Chinese rules • 5. will be applied • 6. arising from • 7. trade mark • 8. foreign citizens

18. The Key to Task 1 • 9. came into effect • 10. need to pay • 11. arbitration case • 12. concerning the case • 13. a final decision • 14. decision and award • 15. negotiation fail • 16. come to you

19. Task 2 Listen to the conversation again and decide whether the statements are true or false.

20. 1. If a foreign firm and a Chinese partner have some sort of dispute, and it comes to arbitration, the arbitration must be conducted only in China. • 2. Arbitration can be conducted either in China or in other countries. It depends on what both parties have agreed. • 3. If arbitration takes place in a foreign country, then the rules of the foreign corresponding institution will be applied. • 4. We can employ either foreign lawyers or Chinese lawyers about patent and trade mark infringement in international trade.

21. 1. If a foreign firm and a Chinese partner have some sort of dispute, and it comes to arbitration, the arbitration must be conducted only in China. F • 2. Arbitration can be conducted either in China or in other countries. It depends on what both parties have agreed. T • 3. If arbitration takes place in a foreign country, then the rules of the foreign corresponding institution will be applied. T • 4. We can employ either foreign lawyers or Chinese lawyers about patent and trade mark infringement in international trade. T

22. 5. On 1st January 1989 our new rules came into effect, which don't enable foreigners to be included in the panel of arbitrators. • 6. If you submit your dispute to arbitration, you only need to pay a reasonable arbitration fee in advance according to the Arbitration Fee Schedule. • 7. CIETAC arranges and supervises the procedures for each arbitration case. • 8. If one party doesn’t follow the decision and award, the People’s Court in China can enforce it at the request of the other party.

23. 5. On 1st January 1989 our new rules came into effect, which don't enable foreigners to be included in the panel of arbitrators. F • 6. If you submit your dispute to arbitration, you only need to pay a reasonable arbitration fee in advance according to the Arbitration Fee Schedule. T • 7. CIETAC arranges and supervises the procedures for each arbitration case. T • 8. If one party doesn’t follow the decision and award, the People’s Court in China can enforce it at the request of the other party. T

24. Conversation 2 Working Out the Arbitration Clause

25. Words and phrases • 1. in case of 万一，假如 • 2. unfortunate incident 不幸事件 • 3. settle v. 解决 • 4. dispute n. 争端，争执 • 5. amicably adv. 友好地，和蔼地 • 6. submit v. 提交，递交 • 7. arbitration n. 仲裁 • 8. permit v. 允许，准许 • 9. reassert v. 重申 • 10. relevant adj. 相关的，有关的

26. Words and phrases • 11. clause n. 条款 • 12. stipulate v. 规定，约定 • 13. Arbitration Commission 仲裁委员会 • 14. China Council for the Promotion of International Trade 中国国际贸易促进会 • 15. the Arbitration Commission of the China Council for the Promotion of International Trade 中国国际贸易促进会仲裁委员会 • 16. execute 执行 • 17. bind 约束，束缚 • 18. decision of the arbitration 仲裁决定 • 19. conciliation n. 协商，调解

27. Notes • 1. in case of和in case都有“假如，以防，万一”的意思，但两者用法不同，in case of后接短语，in case (that) 后接从句。例如： • ⑴In case of any unfortunate incident, we hope we could settle the dispute amicably by negotiation.如果出现了不幸事件，希望我们通过谈判友好地解决争端。 • ⑵In case no settlement can be reached between the two parties, the case under dispute shall be submitted to arbitration. 如果双方不能达成一致的解决意见，争执可提交仲裁。 • 2. submit ... to ... 将……提交给某人，例如：We should submit the case to the court. 我们应当将该案件提交给法院。

28. Notes • 3. In China, the Arbitration Commission of the China Council for the Promotion of International Trade will execute the arbitration. 如果在中国，由中国国际贸易促进会仲裁委员会进行仲裁。 • 4. 仲裁是由仲裁机构依据仲裁协议对当事人之间的合同纠纷和其它财产权益纠纷按照法定程序作出有法律效力的裁决的行为。仲裁克服了协商和调节所缺乏的强制性，又避免了法律诉讼的刻板程序及其给今后经济交往所投下的巨大阴影。因此，仲裁已成为纠纷当事双方普遍乐意接受的方式。

29. Task 3 Listen to the conversation 2 and fill in the blanks.

30. The Key to Task 3 • 1. settle the dispute • 2. negotiation fails • 3. submitted to arbitration • 4. a third country • 5. relevant clause • 6. in China

31. The Key to Task 3 • 7. the third country • 8. the arbitration • 9. as final • 10. both parties • 11. the two parties • 12. in the contract

32. Task 4 Listen to the conversation again and answer the following questions.

33. 1. What do Mr. He and Mr. Rodgers hope to do? • 2. What will they do if negotiation fails? • 3. Do they permit arbitration in a third country? • 4. Do they reassert the relevant clause that should be written in our contract?

34. 1. What do Mr. He and Mr. Rodgers hope to do? • They hope we could settle the dispute amicably by negotiation. • 2. What will they do if negotiation fails? • If negotiation fails, the case under dispute shall be submitted to arbitration. • 3. Do they permit arbitration in a third country? • Yes, they do. • 4. Do they reassert the relevant clause that should be written in our contract? • Yes, they do.

35. 5. Can arbitration be done only in China? • 6. As stipulated, which country can the third country be? • 7. Will the decision of the arbitration be accepted as final and binding upon both parties? • 8. How do the two parties prefer to settle disputes in the end?

36. 5. Can arbitration be done only in China? • No, it can't. The arbitration can be done both in the third country and in China. • 6. As stipulated, which country can the third country be? • As stipulated, the third country can be Switzerland or Holland. • 7. Will the decision of the arbitration be accepted as final and binding upon both parties? • Yes, of course it will. • 8. How do the two parties prefer to settle disputes in the end? • They prefer to settle disputes by amicable conciliation between them.

37. Conversation 3 Consulting the Arbitration

38. Words and phrases • 1. clarify v. 澄清 • 2. procedural rule 程序规则 • 3. be similar to 与……相似 • 4. in effect 现行的，生效的 • 5. adopt v. 采用 • 6. a civil code system 民法制度 • 7. applicable adj. 适用的 • 8. substantive law 实体法 • 9. a sales contract 销售合同

39. Words and phrases • 10. Chinese Rules for Arbitration 中国仲裁规则 • 11. agree on 同意 • 12. a sole arbitrator 独任仲裁员 • 13. chairperson n. 主席 • 14. presiding arbitrator 首席仲裁员 • 15. arbitration panel 仲裁小组 • 16. foreign citizen 外国公民 • 17. panel of arbitrators 仲裁员名册 • 18. cost of arbitration 仲裁费用

40. Notes • 1. CIETAC (China International Economic and Trade Arbitration Commission) 中国国际经济贸易仲裁委员会 • 2. The Chinese Rules for Arbitration provide for the appointment of one or three arbitrators. 中国仲裁规则规定，指定一名或者三名仲裁员。

41. Notes • 3. They are well-known persons with special knowledge and practical experience in international trade and economics, science and technology, law and other fields. 他们都是在国际贸易与经济、科学技术、法律和其他领域中具有专门知识和实际经验的知名人士。 • 4. 国际商事仲裁，是指不同国家的公民、法人将他们的争议，以书面的形式，自愿交由第三者进行评断和裁决。国际商事仲裁主要运用于国际货物买卖合同中的争议、国际货物运输中的争议、国际保险中的争议、国际贸易中的支付结算中的争议等。

42. Task 5 Listen to the conversation 3 and fill in the blanks.

43. The Key to Task 5 • 1. procedural rules • 2. in effect • 3. Chinese law • 4. applicable laws • 5. arbitrators • 6. one or three

44. The Key to Task 5 • 7. presiding arbitrator • 8. arbitration panel • 9. practical experience • 10. foreign citizens • 11. very high • 12. pretty low

45. Task 6 Listen to the conversation again and decide whether the statements are true or false.

46. 1. If arbitration is to take place in China,The CIETAC procedural rules will apply. • 2. The applicable substantive law must be Chinese law. • 3. In case of a sales contract, the parties are not free to choose the applicable laws. • 4. The Chinese Rules for Arbitration provide for the appointment of one or three arbitrators.

47. 1. If arbitration is to take place in China,The CIETAC procedural rules will apply. T • 2. The applicable substantive law must be Chinese law. F • 3. In case of a sales contract, the parties are not free to choose the applicable laws. F • 4. The Chinese Rules for Arbitration provide for the appointment of one or three arbitrators. T

48. 5. The parties may agree on a sole arbitrator if they don't wish to do so. • 6. Where three arbitrators are to be appointed, the third one is to be appointed by the chairperson of CIETAC as the presiding arbitrator. • 7. There are not any foreign citizens on the Chinese panel of arbitrators. • 8. The cost of arbitration in China isn't very high.

49. 5. The parties may agree on a sole arbitrator if they don't wish to do so. F • 6. Where three arbitrators are to be appointed, the third one is to be appointed by the chairperson of CIETAC as the presiding arbitrator. T • 7. There are not any foreign citizens on the Chinese panel of arbitrators. F • 8. The cost of arbitration in China isn't very high. T

50. Conversation 4 Consulting the Settlement