In general, arbitration awards are final and binding on the parties, in the same manner as a court order. Furthermore, a Japanese arbitration award is enforceable in many other countries around the world through international treaties. As arbitration systems become more standardized around the world even more countries are likely to accept and enforce Japanese arbitration awards.
Many Americans are familiar with the job of a process server from American popular culture, where process servers are portrayed as employing disguises or other devious techniques in order to deliver a divorce petition. However, while serving a complaint is the responsibility of the plaintiff in America, in Japan this job is handled by the court. The complaint will be delivered based upon the defendant’s address provided by the plaintiff so, in cases where the address is old or inaccurate, this can make serving the defendant difficult.
An arbitration clause is a clause in a contract that states that the parties will pursue arbitration in case of a breach of the agreement. This arbitration can take place after good-faith negotiations between the parties have failed or can be mandatory immediately upon any breach. Many businesses like to include arbitration clauses in their contracts because it simplifies the process of rectifying a breach. Arbitration can be cheaper and more expedient than litigating the breach in court and for contracts between international parties, pursuing arbitration can be a fairer means of settling a dispute than resorting to local courts.
Normally each party will bear their own legal costs during an arbitration. This creates a fair standard where each party has a firm grasp of the eventual legal fees. However, for parties who want to employ a different type of fee arraignment, it is possible to draft the arbitration agreement to fit their needs.