THE RELEVANCE OF ARBITRATION AND ADR IN CONSUMER PROTECTION IN NIGERIA

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FACULTY OF LAW

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

A TERMPAPER SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENTS OF THE COURSE LAW 513: LAW OF ARBITRATION II

TOPIC

THE RELEVANCE OF ARBITRATION AND ADR IN CONSUMER PROTECTION IN NIGERIA

GROUP ONE

Abonyi Ikedi                        2007/146864

Achebe Nneamaka C                2006/141695

Adeleye Yetunde R                2007/149717

Agharese Osayuki J                2007/150633

Aguboshim Felix                2007/147832

01 JULY 2011

TABLE OF CONTENTS

Table of contents         …………………………………………………………………. 2

Introduction        …………………………………………………………………….. 3

Chapter one:         Definition of terms        …………………………………………….. 4

Chapter two:         Types, features and Benefits of ADR and Arbitration        …….. 6

Chapter three:         ADR and Arbitration in Consumer Protection under the AAA …. 10

Chapter four:         ADR and Arbitration in Consumer Protection Law in Nigeria ….. 18

Chapter five:         Conclusion and Recommendations        …………………………….. 21

INTRODUCTION

Despite historical resistance to ADR by many popular parties and their advocates, ADR has gained widespread acceptance among both the general public and the legal profession in recent years. In fact, some courts now require some parties to resort to ADR of some type usually mediation before permitting the parties’ cases to be tried.

                The rising popularity of ADR and arbitration can be explained by the increasing caseload of traditional courts, the preference for confidentiality and the desire of some parties to have greater control over the selection of the individual(s) who will decide their dispute.

In this work, we will look at the various types of arbitration and Alternative dispute resolution including their advantages and their relevance in today’s consumer protection law.

                We will also consider the use of arbitration and ADR in Consumer Protection as was provided under the American Association of Arbitrators. We will also look into our own law to find out if there are any laws recommending and guiding the use of ADR and arbitration in Consumer Protection.

                Finally, we are going to review such laws to find out their efficiency or otherwise in our Consumer Protection Law.

CHAPTER ONE

DEFINITION OF TERMS

1.0        ARBITRATION

This is a way of settling disputes. It is a situation where two parties decide before a dispute arises that if that dispute arises between them, they will settle the dispute in a particular manner. It is a method of settling disputes under which the parties agree to be bound by the decision of a third person whose decision is, in general final and legally binding on both parties. This process derives its force from the agreement of the parties with the aid of the courts which enforce these decisions. Thus arbitration is defined as a reference of a dispute between not less than two parties for determination after hearing both sides in a judicial manner by a person(s) other than a court of competent jurisdiction.

1.1        ADR

The term ADR is generally used to describe the methods and procedures used to resolve disputes either as alternatives to the traditional disputes resolution mechanism of the court or in some cases as supplementary to such mechanism. It includes dispute resolution processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation.

1.2        CONSUMER

Black’s Law Dictionary defines the word consumer as one who consumes, individuals who purchase, use, maintain and dispose of products and services; users of he final product; a member of the broad class of people who is affected by pricing policies, financing practices, equality of goods and services, credit reporting, debt collection and other trade practices for which the State and the general consumer protection laws are enacted.

                It is also defined by the Consumer Protection Council Act as an individual, who purchases, uses, maintains or disposes of products or services.

1.3        CONSUMER PROTECTION

Consumer Protection can be defined as the act of safeguarding the interests of the consumer in matters relating to the supply of goods and services, fraudulent and hazardous practices as well as environmental degradation

CHAPTER TWO

TYPES, FEATURES AND BENEFITS OF ALTERNATIVE DISPUTE RESOLUTION AND ARBITRATION

2.0        TYPES AND FEATURES OF ARBITRATION

There are four major types of arbitration and they are as follows

  • Commercial arbitration
  • Civil arbitration
  • Industrial arbitration
  • International arbitration
  1. Commercial Arbitration: The arbitration of disputes involving the interpretation of business contracts or violations of established trade practices is called commercial arbitration. In these cases, arbitration saves the parties legal expenses and usually provides a quicker, more private and often expert decision than a court can provide.
  2. Civil Arbitration: Disputes arising from social or civil relations such as accusations of libel or trespass and the settlement of accident claims are dealt with in civil arbitration.
  3. Industrial Arbitration: The arbitration of disputes between organized labour and employers is called industrial arbitration. In most cases, the subject of the dispute is the interpretation of part of a union-management contract; the contract itself is usually agreed upon through the process of collective bargaining.
  4. International Arbitration: The arbitration of disputes between the governments of sovereign states is called international arbitration. A government may seek damages for one of its citizens who have been treated unjustly by another nation.
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2.1        TYPES AND FEATURES OF ADR

ADR is basically a resolution where you can save lots of money against another dispute resolution such as litigation. ADR is generally classified as a resolution for disputing many forms of ADR into at least four types:

  • Negotiation
  • Mediation
  • Collaborative law
  • Conciliation

ADR can be used alongside existing legal systems.

  1. Negotiation: This is an indispensable step in any ADR process. It is a fundamental key to all consensual ADR activities and infact, the most satisfactory method of settling disputes. Usually, negotiation consists of a quid pro quo of a sort, i.e. ...

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