arbitration

If a party to the arbitration does not appear then the arbitrators will need to make their decision based upon the evidence available to them.  One party failing to appear will not ordinarily suspend or cancel an arbitration.  Therefore, it is important for both parties to make an appearance so the arbitrators can make a fully informed decision.

Japan’s Arbitration Act contains some mandatory rules for how arbitrations in Japan should proceed.  However, many of the more specific rules are set by arbitration organizations such as the Japan Commercial Arbitration Association.  Designating one of these associations in an arbitration agreement or arbitration clause will specify that organization’s rules as the governing rules of the arbitration.

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.

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.