Q.1 What is arbitration primarily used for?
Criminal disputes
Private dispute resolution
Election disputes
Constitutional interpretation
Explanation - Arbitration is a private mechanism for resolving disputes outside courts, mainly in civil and commercial matters.
Correct answer is: Private dispute resolution
Q.2 Which law governs arbitration in India?
Indian Penal Code
Arbitration and Conciliation Act, 1996
Civil Procedure Code
Companies Act, 2013
Explanation - The Arbitration and Conciliation Act, 1996 provides the framework for arbitration and conciliation in India.
Correct answer is: Arbitration and Conciliation Act, 1996
Q.3 An arbitration agreement must be:
Oral
Written
Implied
Optional
Explanation - As per law, arbitration agreements must be in writing to be legally valid.
Correct answer is: Written
Q.4 Who appoints the arbitrator if parties fail to agree?
President of India
High Court or Supreme Court
Parliament
Bar Council
Explanation - Under Section 11 of the Arbitration Act, courts appoint arbitrators when parties fail to agree.
Correct answer is: High Court or Supreme Court
Q.5 The decision of an arbitrator is called:
Judgment
Arbitral Award
Decree
Verdict
Explanation - The final decision given by an arbitrator is legally termed an arbitral award.
Correct answer is: Arbitral Award
Q.6 Which principle guides arbitration proceedings?
Doctrine of stare decisis
Principle of natural justice
Judicial activism
Parliamentary supremacy
Explanation - Arbitration must follow natural justice, ensuring fairness and equal opportunity.
Correct answer is: Principle of natural justice
Q.7 Arbitration is generally considered to be:
Faster and confidential
Slower than court
Only for criminal matters
More expensive than litigation
Explanation - Arbitration is chosen because it is faster, flexible, and maintains confidentiality.
Correct answer is: Faster and confidential
Q.8 How many arbitrators are allowed if parties fail to agree on the number?
One
Two
Three
Five
Explanation - If parties fail to decide, the default rule is three arbitrators: each party appoints one, and the two appoint a third.
Correct answer is: Three
Q.9 Which section of the Arbitration Act defines arbitration agreement?
Section 7
Section 9
Section 11
Section 34
Explanation - Section 7 of the Arbitration and Conciliation Act, 1996 defines arbitration agreement.
Correct answer is: Section 7
Q.10 Can arbitral awards be challenged in court?
Never
Only under limited grounds
Always
Only if both parties agree
Explanation - Courts can set aside awards only for limited reasons such as fraud or violation of natural justice.
Correct answer is: Only under limited grounds
Q.11 Which type of arbitration involves a neutral arbitrator chosen from another country?
Institutional arbitration
Ad hoc arbitration
International arbitration
Domestic arbitration
Explanation - When parties from different countries choose arbitration, it is termed international arbitration.
Correct answer is: International arbitration
Q.12 Which institution is known for administering international arbitration?
Supreme Court
ICDR
ICC
UN General Assembly
Explanation - The International Chamber of Commerce (ICC) is a leading body for international arbitration.
Correct answer is: ICC
Q.13 What is the main advantage of arbitration?
Longer trials
Confidential and flexible process
Public trial
Free legal aid
Explanation - Arbitration ensures privacy and allows parties to design their own procedures.
Correct answer is: Confidential and flexible process
Q.14 What does 'ad hoc arbitration' mean?
Managed by an arbitral institution
Organized by parties themselves
Conducted by government
Supervised by courts
Explanation - Ad hoc arbitration is conducted without institutional support, managed by the parties.
Correct answer is: Organized by parties themselves
Q.15 Which section allows courts to grant interim measures during arbitration?
Section 9
Section 11
Section 21
Section 34
Explanation - Section 9 of the Arbitration Act empowers courts to order interim measures.
Correct answer is: Section 9
Q.16 The seat of arbitration refers to:
Place of hearing
Nationality of arbitrator
Jurisdiction governing arbitration
Court where appeal is filed
Explanation - Seat of arbitration determines the procedural law and jurisdiction applicable to the arbitration.
Correct answer is: Jurisdiction governing arbitration
Q.17 Which of the following is NOT a feature of arbitration?
Binding award
Private process
Court-monitored
Party autonomy
Explanation - Arbitration is a private process and not continuously monitored by courts.
Correct answer is: Court-monitored
Q.18 Can an arbitral award be enforced like a court decree?
Yes
No
Only in international arbitration
Only in domestic arbitration
Explanation - Under Section 36, arbitral awards are enforceable as if they were court decrees.
Correct answer is: Yes
Q.19 In institutional arbitration, who administers the process?
Courts
Arbitral institutions
Police
Bar Council
Explanation - Institutional arbitration is conducted under the rules of an arbitral institution.
Correct answer is: Arbitral institutions
Q.20 Which is a recognized arbitral institution in India?
SEBI
ICADR
ICJ
NITI Aayog
Explanation - The International Centre for Alternative Dispute Resolution (ICADR) is an arbitral institution in India.
Correct answer is: ICADR
Q.21 Which UNCITRAL rule is relevant to arbitration?
UNCITRAL Arbitration Rules
UNCITRAL Insolvency Rules
UNCITRAL Trade Rules
UNCITRAL Maritime Rules
Explanation - The UNCITRAL Arbitration Rules provide a widely used framework for international arbitration.
Correct answer is: UNCITRAL Arbitration Rules
Q.22 Which term refers to the freedom of parties to design procedures?
Party autonomy
Judicial precedent
Binding precedent
Judicial review
Explanation - Party autonomy is a core principle of arbitration, allowing flexibility in procedure.
Correct answer is: Party autonomy
Q.23 Can criminal matters be referred to arbitration?
Yes
No
Only minor cases
Only with court permission
Explanation - Arbitration applies only to civil and commercial disputes, not criminal cases.
Correct answer is: No
Q.24 What is the minimum requirement for an arbitration agreement?
Signed writing
Oral promise
Stamp duty
Registration with court
Explanation - An arbitration agreement must be in writing, signed, or recorded electronically.
Correct answer is: Signed writing
Q.25 Under Section 34, an arbitral award can be:
Appealed
Set aside
Modified by parties
Replaced automatically
Explanation - Section 34 allows courts to set aside arbitral awards on specific grounds.
Correct answer is: Set aside