There Are a Number of Distinct Parts to the Arbitration

question 20

Multiple Choice

There are a number of distinct parts to the Arbitration Act 1996. Match up the sections with their meaning
-Powers of the arbitrator

• A)The AA 1950 allowed for either party to the proceedings to have questions of law authoritatively determined by the High Court through the procedure of ' case stated '
• B)Section 30 provides that, unless the parties agree otherwise, the arbitrator can rule on questions relating to jurisdiction in certain situations
• C)Where one party seeks to start a court action, contrary to a valid arbitration agreement, then the other party may request the court to stay the litigation in favour of the arbitration agreement under ss 9-11 of the AA 1997
• D)It is signifi cant that most of the provisions set out in the AA 1996 are not compulsory

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Definitions:

Contra-Asset

A contra-asset account is an asset account where the balance of the account will either be a zero or a negative figure, which offsets the balance of the related asset account.

Doubtful Accounts

Receivable accounts that may potentially become bad debts as the likelihood of collection is uncertain.

Balance Sheet

The balance sheet is a financial statement that shows a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Allowance Method

Bases bad debt expense on an estimate of uncollectible accounts.