1996 No. 3211
ARBITRATION

The Unfair Arbitration Agreements (Specified Amount) Order 1996

Made
Laid before Parliament
Coming into force
The Secretary of State, in exercise of the powers conferred on him by section 91(3)(a) and (b) of the Arbitration Act 19961, with the concurrence (as respects England and Wales) of the Lord Chancellor and (as respects Scotland) of the Lord Advocate, hereby makes the following Order:

1.

This Order may be cited as the Unfair Arbitration Agreements (Specified Amount) Order 1996, and shall come into force on 31st January 1997.

2.

The amount of £3,000 is hereby specified for the purposes of section 91 of the Arbitration Act 1996 (arbitration agreement unfair where modest amount sought).

John M. Taylor,
Parliamentary Under-Secretary of State for Corporate and Consumer Affairs,

Department of Trade and Industry

I concur,

Mackay of Clashfern, C.

I concur,

Mackay of Drumadoon,
Lord Advocate's
Department
(This note is not part of the Order)

This Order specifies the amount of £3,000 for the purposes of section 91 of the Arbitration Act 1996. Subsection (1) of that section provides that a term which constitutes an arbitration agreement is unfair for the purposes of the Unfair Contract Terms in Consumer Contracts Regulations 1994 (S.I. 1994/3159), which implement Council Directive 93/13/EEC on unfair terms in consumer contracts (OJ No. L95, 21.4.93, p.29), so far as the term relates to a claim for a pecuniary remedy which does not exceed the amount specified by order for the purposes of that section.

Section 89(1) defines “arbitration agreement” as an agreement to submit to arbitration present or future disputes or differences (whether or not contractual).