If an arbitration agreement does not meet the following four requirements, the procedure is inherently erroneous and is subject to judicial intervention or delay and inefficiency. The issue of arbitration opens a window into a bitter philosophical quarrel among American progressives. Some, led by Taft, saw legal conciliation as the best alternative to war. Taft was a defender of constitutional rights, who later became head of justice; he had a deep understanding of legal issues.  Taft`s political base was the conservative economy, which largely supported peace policy movements before 1914. However, his mistake in this case was that he failed to mobilize that base. Businessmen believed that economic rivalries were the cause of war and that extensive trade led to an interdependent world that would make war a very costly and unnecessary anachronism. The arbitration will then be in accordance with the procedure that has been adopted. In the case of ad hoc arbitration, arbitration tribunals are appointed by the parties or by an authority vested with the board of directors elected by the parties. After the formation of the tribunal, the authority vested in the board of directors will normally have no other role and the arbitration procedure will be managed by the court. Like the courts, arbitration tribunals generally have the same power to award costs in relation to the decision of the dispute. In international arbitrations and national arbitrations governed by the laws of countries where the courts can award costs to a losing party, the arbitral tribunal will also determine the part of the arbitrators` fees that the losing party must bear. Clause: Any dispute under this agreement is settled by binding arbitration, unless a third party is substantially necessary for the settlement of the dispute and an arbitration procedure is not so mandatory, unless the third party unconditionally consents to participate.
Error: who decides whether a third party is “substantially necessary” or is willing to participate “unconditionally”? And when is conciliation not mandatory? If the parties agree on whether a third party is “substantially necessary” or if an “essential” third party refuses to participate, legal action may be necessary. U.S. Secretary of State William Jennings Bryan (1913-1915) was firmly committed to international arbitration agreements, but his efforts were thwarted by the outbreak of World War I.