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1. During arbitration, a respondent refuses to submit evidence. What is the correct approach of
the tribunal?
Arbitrators do not automatically rule in favor of the claimant if the respondent fails to participate; they must still evaluate the evidence to ensure fairness.
Automatically rule in favor of the claimant.
Continue proceedings, considering the evidence presented by the claimant.
Postpone the hearing indefinitely.
Appoint a substitute respondent.
2. How did the court in the Milieudefensie v. Royal Dutch Shell case view Royal
Dutch Shell’s corporate responsibility in the context of climate change?
The court determined that Shell has a duty of care to mitigate climate change, not just within its direct operations, but globally, including emissions from its products sold to consumers.
Shell had no corporate responsibility since it complied with Dutch environmental laws.
Shell’s responsibility was limited to reducing emissions in countries where it operates directly.
Shell had a duty of care to reduce emissions globally, across all its activities and products.
Shell’s corporate responsibility was limited to its shareholders and not to broader environmental concerns.
3. A British investment firm initiates arbitration against an Argentine company under the rules of
the Bilateral Investment Treaty (BIT). The Argentine company argues that the firm should have
first filed a lawsuit in Argentina’s local courts before initiating arbitration, as required by the
BIT.
Which case confirmed that arbitrators, not courts, can decide whether procedural preconditions
(like a local litigation requirement) have been met?
This case confirmed that arbitrators have the authority to determine whether procedural preconditions, such as local litigation requirements, have been satisfied.
Fiona Trust & Holding Corporation v. Privalov
BG Group PLC v. Republic of Argentina
LCIA v. ICC
Sovcomflot v. Nikitin
4. A U.S. company wins an arbitration award in Geneva against a French company. What is the
most crucial factor for the award’s enforceability under the New York Convention?
To be enforceable under the New York Convention, the award must adhere to the procedural rules of the arbitral seat.
Whether the award was rendered in English.
The award must meet procedural standards at the arbitral seat.
The losing party must agree to enforcement.
Whether the award can be converted into a consent order.
5. An investor believes an arbitrator in their ISDS case has a conflict of interest
due to previous work with an opposing party.
What reform could address this concern?
Disclosure of conflicts can help ensure impartiality in arbitration, addressing concerns about bias.
Introducing stricter qualifications for arbitrators.
Allowing public access to all arbitration documents
Increasing the number of arbitrators.
Ensuring arbitrators disclose any potential conflicts of interest.
6. A Canadian investor invested in a factory in country W. The government of W later nationalized
the factory, arguing that it was in the public interest. The investor was compensated at a value
far below market rates. Which principle under ISDS is the investor most likely to invoke in
their claim?
Under ISDS, expropriation is allowed only if it is for public interest, nondiscriminatory, and is accompanied by fair market compensation. The investor can claim inadequate compensation as a violation of ISDS protections
Fair and equitable treatment
National treatment
Expropriation with inadequate compensation
Most-favored-nation treatment
7. What was the primary legal issue addressed in the appeal in the case of Vedanta
Resources v Lungowe (2019)?
The appeal primarily focused on whether the English courts had jurisdiction over the claims against both Vedanta and KCM, with Vedanta domiciled in the UK and KCM in Zambia. Jurisdiction was the central issue, not the merits of the environmental damage claim.
Whether the claimants had a right to damages for environmental harm.
Whether the English courts had jurisdiction to hear the claims.
Whether Vedanta had breached Zambian environmental law.
Whether Vedanta had control over the operations of Konkola Copper Mines (KCM).
8. TechHire, an AI-powered recruitment platform, uses machine learning algorithms to screen job
applicants. It has been reported that the AI system tends to favor male candidates over female
candidates because the training data primarily consisted of male resumes. This raises concerns
about potential discrimination.
What should TechHire do to address the bias in its AI system while complying with
data protection regulations?
TechHire must address bias by retraining its AI system with a more balanced dataset. This reduces the risk of discriminatory outcomes and aligns with legal and ethical obligations under data protection laws.
Allow the AI to continue operating without changes, as any modifications could disrupt the recruitment process.
Retrain the AI model using more diverse datasets to reduce bias and ensure fairness in decision-making.
Inform candidates that AI decision-making is inherently biased and offer manual review options for female applicants only.
Remove the AI system entirely, as AI use in hiring violates GDPR’s data protection principles.
9. An investor from a different EU member state challenges an EU country
regarding new environmental regulations based on a bilateral investment treaty.
Which ruling would likely support the state’s argument against the ISDS claim?
The Achmea ruling established that ISDS claims within the EU are incompatible with EU law, supporting the state’s position.
The Achmea case
The Micula case
The Energy Charter Treaty
The ICSID Convention
10. In an arbitration case under ICC rules, both parties agree to consolidation. What key factor
makes consolidation possible?
Consolidation of disputes in arbitration typically requires the consent of all parties involved.