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Commerce Act 1986

Regulated goods or services - Negotiate/arbitrate regulation

53J: Compulsory arbitration

You could also call this:

"When you can't agree on something, a neutral person makes a decision for you that you must follow."

Illustration for Commerce Act 1986

If you are involved in a dispute about regulated goods or services and you cannot reach an agreement, you must go to arbitration. This means a neutral person, called an arbitrator, will make a decision for you. The arbitrator's decision must support the purpose of this part of the law. The Commission sets the terms of the arbitration, which are outlined in the section 52P determination. The arbitrator's decision is binding, meaning you must follow it, unless you agree to change it.

If the people who will be affected by the decision, like the consumers who use the goods or services, are not directly involved in the arbitration, the arbitrator must think carefully about how their decision will affect these people. The Arbitration Act 1996 does not apply to this type of arbitration, but the Commission can use some of its rules if they want to. The arbitrator's goal is to make a fair decision that promotes the purpose of this part of the law.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1685613.

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53I: Section 52P determination to set out requirements for application of negotiate/arbitrate regulation, or

"Rules for negotiating and arbitrating disputes about regulated goods and services"

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53K: Purpose of default/customised price-quality regulation, or

"Helping suppliers set fair prices and good quality for their goods and services"

Part 4Regulated goods or services
Negotiate/arbitrate regulation

53JCompulsory arbitration

  1. If a settlement is not reached (whether by negotiation or voluntary arbitration) within the time frame set by the Commission, the parties must enter into arbitration under this section on the terms set out in the section 52P determination.

  2. The Arbitration Act 1996 does not apply to arbitration under this section, but the Commission may, in setting out the terms of the arbitration in the section 52P determination, apply any provisions of that Act to the arbitration.

  3. The arbitrator’s role is to make an arbitral award that promotes the purpose of this Part.

  4. If final consumers of regulated goods or services are not directly represented as parties in the arbitration, the arbitrator must have particular regard to the effect of the outcome of the arbitration on those final consumers.

  5. The arbitral award is binding on the parties to the arbitration unless or until the parties agree to vary it.

Notes
  • Section 53J: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).