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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 tried1. 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 dispute2. 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. ...read more.


Mediation Principle 11: Agreements to arbitrate Principle 12: Arbitration hearings Principle 13: Access to information Principle 14: Arbitral remedies Principle 15: Arbitration awards PRINCIPLE 1: FUNDAMENTALLY-FAIR PROCESS "All parties are entitled to a fundamentally-fair ADR process. As embodiments of fundamental fairness, these Principles should be observed in structuring ADR Programs". Users of ADR are entitled to a process that is fundamentally fair. Emerging standards governing consensual and court-connected ADR programs reflect pervasive concerns with fair process18. PRINCIPLE 2: ACCESS TO INFORMATION REGARDING ADR PROGRAM "Providers of goods or services should undertake reasonable measures to provide Consumers with full and accurate information regarding Consumer ADR Programs. At the time the Consumer contracts for goods or services, such measures should include (1) clear and adequate notice regarding the ADR provisions, including a statement indicating whether participation in the ADR Program is mandatory or optional, and (2) reasonable means by which Consumers may obtain additional information regarding the ADR Program. After a dispute arises, Consumers should have access to all information necessary for effective participation in ADR". Consumers are entitled to know what tasks the neutral may perform and what tasks they are expected to perform in the course of a particular dispute resolution service. It is the responsibility of private programs offering dispute resolution services to define clearly the services they provide and provide information about the program and Neutrals to the parties. At a minimum, Consumers should be provided with (or have prompt access to) written information to explain the process. This should include general information describing each ADR process used and its distinctive features including: * the nature and purpose of the process, including the scope of ADR provisions * an indication of whether or not the Consumer has a choice regarding use of the process * the role of parties and attorneys, if any * procedures for selection of Neutrals * rules of conduct for Neutrals and complaint procedures * fees and expenses * information regarding ADR Program operation including locations, times of ...read more.


3 Rev. Fr. Dr. Edwin Obimma Ezike, Lecture Notes on Law of Arbitraton 1, p.3 4 Halsbury's Law of England, 4th ed. Vol. 2, p.255 5 Orojo and Ajomo, Law and Practice of Arbitration and Conciliation in Nigeria, Lagos: Mbeyi and Associates (Nigeria) Ltd., 1999, p.4. 6 http://www.en.wikipedia.org/wiki/Alternate Dispute Resolution. Retrieved on 17/6/2011 7 Section 32 8 Felicia Monye, Law of Consumer Protection, 1st ed. Spectrum Books ltd, 2003, p. 20 9 Rev. Fr. Dr. Edwin Obimma Ezike, Op cit., p.8 10 Ibid. 11 Ibid. 12 Schwartz, David S., "Mandatory Arbitration and Fairness". 84 Notre Dame L. Rev. 1247 13 Lynch, J. "ADR and Beyond: A Systems Approach to Conflict Management", Negotiation Journal, Vol. 17, No. 3, July 2001, p. 213. 14 See "CPR Institute for Dispute Resolution", ADR Cost Savings and Benefit Studies (Catherine Cronin-Harris, ed. 1994) 15 The arbitration agreement may be included in the "fine print" in a brochure of terms and conditions inside a box of goods. 16 Mark E. Budnitz, "Arbitration of Disputes Between Consumers and Financial Institutions": A Serious Threat to Consumer Protection, 10 Ohio St.J. On Disp. Res. 267 (1995) 17 William W. Park, "When and Why Arbitration Matters": The Commercial Way to Justice 73, 75 ( G.M. Beresfort Hartwell ed., 1997) 18 Schwartz, David S., "Enforcing Small Print to Protect Big Business": Employee and Consumer Rights claim in an Age of Compelled Arbitration, 1997 Wis. L. Rev.33, 55-60 19 http://www.adr.org/Kaiser Permanente Review and Recommendations, p.28 20 http://www.adr.org/AAA Commercial Rule 22 21 Bowles Financial Grp Inc. v. Stiefel, Nicolaus & Co.(1994) 10th Cir. 1013 22 Thomas J. Stipanowich, "Punitive Damages and Consumerization of Arbitration", 92 Nw. U.L.Rev. 1 1998 23 Prof. Felicia Monye, "Consumer Protection and ADR in Nigeria". Available at http://www.cl&pblog.org. Retrieved on 30/6/2011 24 Boardman v Guinness (Nig) Ltd. (1980) NCLR 109 at 126; Okonkwo v. Guinness (Nig.) Ltd. (1980) NCLR at 130; Ebelamu v. Guiness (Nig.) Ltd. FCA/101/82) 25 Prof. Felicia Monye. Op. cit 26 CAP 25, LFN 2004 27 Section 1 28 Section 4(1) 29 Section 5(a-c) 30 Section 6 31 Prof. Felicia Monye. Op. cit ?? ?? ?? ?? 21 ...read more.

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