Commercial arbitration involves the process of settling disputes within commercial relationships. This means arbitration of domestic disputes related to business or trade transactions involving the supply and exchange of goods and services. This is different from those that relate to family, labor law and personal relationships and different from the international commercial arbitration.
For international commercial arbitration, the ICCA or the International Council for Commercial Arbitration takes charge in promoting and formulating dispute resolutions that involve international commerce. Conferences are being held by this council to ensure that there are resolutions towards different dispute and most especially, they work toward maintaining unity of arbitration which includes proper practice and implementation of laws.
Arbitration aims to find solutions to problems faced by commercial establishments through the intervention of a neutral third party. This is a cost effective method observed by many companies as a way to avoid time consuming and lengthy court trials although this is already equivalent to litigation in the courts. Many organizations also prefer this route to protect their privacy unlike court trials where a company’s problems and sometimes trade secrets are brought out in the open. In this instance, both parties must first agree on the arbitrator they will hire and must also commit to following whatever decision is reached by the same arbitrator.
Just like any other agreement, rules should always be part of any commercial arbitration because these rules show and explain the limits, advantages, disadvantages and restrictions of a specific deal which should all the time be followed to ensure its validity and confidentiality. The Commercial Arbitration Rules include Agreement of Parties which state that both parties involve should both agree with their entire contract and nevertheless should make sure that they both decided on every minor issue to avoid fights and misunderstanding among those involved.
Other rules are the AAA and Delegation of Duties which explains the role of each person involved; the National Roster of Arbitrators, Administrative Conference and Disclosure, among many others.