Arbitration is an alternative form of dispute resolution (‘ADR’) where parties with a disagreement present their case to a neutral third party known as an arbitrator, who then determines an outcome to resolve a dispute.

A decision made by an arbitrator is legally binding on all parties and enforceable in Court, unless all parties agree that the arbitrator’s decision will not be legally binding .

Since 2010, all of Australia's states and territories have been governed by Commercial Arbitration Acts, a scheme of legislation which have created a uniform framework for commercial arbitration in Australia. This ensures consistency in the processes and outcomes of arbitrations across the country.  

Arbitration between countries is also regulated in Australia by the International Arbitration Act 1974 (Cth) .

Arbitration is a popular method for resolving commercial disputes, as it is efficient, impartial and enforceable . There are many professional arbitrators in Australia, and its arbitration industry is independent and sophisticated .

Restraint of trade clauses are common in franchise agreements and are designed to protect the franchisor's legitimate business interests.

It is important for franchisees to carefully review and understand the restraint of trade clauses in their franchise agreements to ensure compliance and avoid potential legal issues.

Following on from our recent article about misleading or deceptive conduct, we take a look at the case of Lanhai Pty Ltd v 7 Eleven Stores Pty Ltd [2022] VSC 132, which involves allegations of misleading and deceptive conduct about the term of the franchise agreement.

Misleading or deceptive conduct is the most commonly reported complaint by small business to the ACCC. While these complaints will not all relate to franchising issues, misleading or deceptive conduct complaints in franchising are common.

Dispute resolution, also known as alternative dispute resolution or ADR, encompasses various methods and techniques that aim to resolve conflicts and disagreements. It provides an alternative to traditional legal processes, such as litigation, and offers parties involved in a dispute the opportunity to find mutually satisfactory solutions.