Q.1 What is the primary purpose of international arbitration?
To resolve disputes between parties from different countries without going to court
To enforce domestic tax laws internationally
To draft trade agreements
To regulate international banking transactions
Explanation - International arbitration is used to resolve cross-border disputes outside the court system, providing neutrality and enforceability across jurisdictions.
Correct answer is: To resolve disputes between parties from different countries without going to court
Q.2 Which institution is commonly associated with international arbitration?
International Court of Justice
International Chamber of Commerce
World Trade Organization
United Nations Development Programme
Explanation - The International Chamber of Commerce (ICC) administers arbitration cases globally, providing a framework and rules for international dispute resolution.
Correct answer is: International Chamber of Commerce
Q.3 Which law primarily governs the enforcement of foreign arbitral awards?
Vienna Convention
New York Convention
Geneva Convention
Hague Convention
Explanation - The 1958 New York Convention facilitates the recognition and enforcement of foreign arbitral awards across its member states.
Correct answer is: New York Convention
Q.4 Which of the following is NOT a common feature of international trade law?
Regulation of tariffs
Arbitration of disputes
Domestic property taxation
Trade agreements enforcement
Explanation - International trade law focuses on cross-border transactions and trade regulations, not domestic property taxation.
Correct answer is: Domestic property taxation
Q.5 The term 'lex mercatoria' refers to:
A type of international court
The body of commercial law used by merchants globally
A UN trade policy
A bilateral treaty
Explanation - Lex mercatoria is the traditional body of commercial practices and principles applied in international trade.
Correct answer is: The body of commercial law used by merchants globally
Q.6 Which of the following is a key advantage of arbitration over litigation?
Lower enforceability internationally
Neutral forum and confidentiality
Longer procedural timelines
Higher costs in all cases
Explanation - Arbitration provides a neutral setting for parties from different countries and often ensures confidentiality, unlike public court proceedings.
Correct answer is: Neutral forum and confidentiality
Q.7 Which international body oversees global trade rules and dispute resolution?
International Monetary Fund
World Trade Organization
International Criminal Court
United Nations Security Council
Explanation - The WTO regulates international trade, sets rules, and resolves trade disputes among member countries.
Correct answer is: World Trade Organization
Q.8 Which of these is a standard rule used in arbitration proceedings?
ICC Arbitration Rules
Geneva Protocol
UN Charter
IMF Monetary Guidelines
Explanation - The ICC provides a comprehensive set of rules that govern the arbitration process, widely adopted internationally.
Correct answer is: ICC Arbitration Rules
Q.9 Which of the following best describes 'bilateral investment treaties' (BITs)?
Agreements between two countries to promote trade and investment protection
International tax agreements
Domestic employment laws
United Nations resolutions on trade
Explanation - BITs are agreements that protect investors and encourage cross-border investments between two countries.
Correct answer is: Agreements between two countries to promote trade and investment protection
Q.10 Which of the following is considered an alternative dispute resolution mechanism?
International arbitration
Criminal prosecution
Legislative enactments
Bankruptcy proceedings
Explanation - Alternative dispute resolution (ADR) includes arbitration, mediation, and negotiation, offering a non-litigation route to resolve disputes.
Correct answer is: International arbitration
Q.11 Which of these treaties specifically regulates international sales of goods?
CISG (United Nations Convention on Contracts for the International Sale of Goods)
Paris Agreement
Geneva Convention
Bretton Woods Agreement
Explanation - The CISG provides uniform rules for international sale of goods contracts to reduce legal barriers in global trade.
Correct answer is: CISG (United Nations Convention on Contracts for the International Sale of Goods)
Q.12 The term 'party autonomy' in arbitration means:
Parties choose the law, venue, and arbitrators
Courts control all arbitration processes
Arbitration is always public
The government decides dispute outcomes
Explanation - Party autonomy allows disputing parties to decide key aspects of arbitration, increasing flexibility and neutrality.
Correct answer is: Parties choose the law, venue, and arbitrators
Q.13 Which of the following is a common ground for refusing enforcement of an arbitral award?
Arbitration agreement was invalid
Award is favorable to one party
Award was written in English
Award involved commercial dispute
Explanation - Enforcement may be refused if the arbitration agreement was invalid, the award violates public policy, or due process was compromised.
Correct answer is: Arbitration agreement was invalid
Q.14 Which law governs the substantive issues in an international trade contract if parties do not choose a law?
Lex loci contractus
Lex arbitri
Lex mercatoria
Lex fori
Explanation - Lex mercatoria refers to general commercial principles and practices applied internationally, often used when no specific law is chosen.
Correct answer is: Lex mercatoria
Q.15 In arbitration, what is the role of an 'arbitral tribunal'?
To adjudicate the dispute and render a binding award
To draft trade agreements
To enforce domestic law
To monitor elections
Explanation - The arbitral tribunal hears evidence, evaluates arguments, and issues a binding award based on law or party agreement.
Correct answer is: To adjudicate the dispute and render a binding award
Q.16 Which of these is an emerging field within international trade law?
Digital trade and e-commerce regulations
Maritime piracy
Local property law
Bank robbery statutes
Explanation - As global commerce moves online, regulations governing digital trade and e-commerce have become a critical emerging field.
Correct answer is: Digital trade and e-commerce regulations
Q.17 What does the term 'forum non conveniens' signify in international disputes?
Court declines jurisdiction for a more appropriate venue
Court always takes jurisdiction
Mandatory arbitration clause
Automatic enforcement of awards
Explanation - Forum non conveniens allows courts to refuse a case if a different forum is more suitable for hearing the dispute.
Correct answer is: Court declines jurisdiction for a more appropriate venue
Q.18 Which of the following is a common arbitration clause in international contracts?
"Any dispute shall be settled by binding arbitration under ICC rules"
"All disputes resolved by domestic court only"
"Tax matters follow local regulations"
"Labor disputes to be handled by UN"
Explanation - This type of clause ensures that any disputes under the contract are resolved through ICC arbitration, providing certainty and neutrality.
Correct answer is: "Any dispute shall be settled by binding arbitration under ICC rules"
Q.19 Which concept allows international investors to directly sue a foreign government?
Investor-State Dispute Settlement (ISDS)
Diplomatic immunity
Nationalization
Trade embargo
Explanation - ISDS provisions in treaties allow investors to bring claims against states for breaches of investment protections without relying on domestic courts.
Correct answer is: Investor-State Dispute Settlement (ISDS)
Q.20 Which organization publishes the UNCITRAL Model Law on International Commercial Arbitration?
United Nations Commission on International Trade Law
World Bank
International Monetary Fund
International Labour Organization
Explanation - UNCITRAL develops model laws and guidelines to harmonize international commercial arbitration practices worldwide.
Correct answer is: United Nations Commission on International Trade Law
Q.21 Which of these principles governs trade between WTO members?
Most-Favored-Nation (MFN) and National Treatment
Lex mercatoria
Investor-State Dispute Settlement
Forum non conveniens
Explanation - MFN ensures no discrimination between trading partners, and National Treatment ensures foreign and domestic goods are treated equally.
Correct answer is: Most-Favored-Nation (MFN) and National Treatment
Q.22 Which type of arbitration is generally faster and less formal?
Expedited or summary arbitration
Litigation
Judicial review
Appellate arbitration
Explanation - Expedited arbitration provides a simplified and faster process suitable for smaller disputes or urgent matters.
Correct answer is: Expedited or summary arbitration
Q.23 Which term describes the recognition of an arbitral award in national courts?
Enforcement
Adjudication
Mediation
Negotiation
Explanation - Enforcement allows an arbitral award issued internationally to be recognized and executed by domestic courts.
Correct answer is: Enforcement
Q.24 Which factor can influence the choice of law in international arbitration?
Parties’ agreement, type of contract, and legal principles involved
Local weather conditions
Political party in power
Time of year
Explanation - The choice of law is guided by contractual agreements, the nature of the transaction, and relevant international commercial principles.
Correct answer is: Parties’ agreement, type of contract, and legal principles involved