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When is an arbitration agreement unenforceable?

An arbitration agreement is unenforceable in the following circumstances:

    • The parties have an agreement to settle their disputes at a specific arbitration center which has terminated its operations without any arbitration center taking over its cases, and the parties fail to reach an agreement on a different arbitration center to settle their dispute;
    • The parties agree to appoint a specific ad hoc arbitrator, but when the dispute arises, due to force majeure events or objective difficulties, such arbitrator cannot take the case. Another circumstance is when the arbitration center or court cannot locate the arbitrator as agreed upon by the parties, and the parties fail to reach an agreement to select a substitute arbitrator;
    • The parties have an agreement to the appointment of a specific ad hoc arbitrator, but when the dispute arises, such arbitrator refuses the appointment or the arbitration center refuses the arbitrator appointment, and the parties fail to reach an agreement to select a substitute arbitrator;
    • The parties have an agreement to settle their dispute at a specific arbitration center but opt for the rules of procedure of another arbitration center, which is contrary to the rules of procedure of the agreed arbitration center. In addition, the charter of the arbitration center selected by both parties does not allow the application of the rules of procedure of other arbitration centers, and the parties fail to reach an agreement on substitute rules of procedure; and
    • The goods/service provider and consumers have an overall agreement on the provision of goods/services that contain arbitration terms drafted by the provider, but when the dispute arises, the consumers refuse to have the dispute settled by an arbitral tribunal.

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