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Disputes between consumers and businesses that are arbitrated are resolved by an independent neutral arbitrator rather than in court. Although parties can agree to arbitrate a particular dispute after it arises or may agree that the award is non-binding, most consumer arbitrations occur pursuant to a pre-dispute arbitration clause where the arbitrator's award is binding.
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The Arbitration Act 1950 (14 Geo. 6.c. 27) was an Act of the Parliament of the United Kingdom that consolidated and amended arbitration law in England and Wales.. Although the Act has now largely been superseded by the Arbitration Act 1996, Part II of the Act (dealing with the enforcement of non-New York Convention awards) remains in force. [1]
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If any legal proceedings are commenced against a party which are subject to an arbitration agreement, then the party may apply to the court for a stay of those legal proceedings, and the Act provides that the court "shall grant a stay unless [it is] satisfied that the arbitration agreement is null and void, inoperative, or incapable of being ...