Effectiveness of an arbitration clause in agreements involving disposal of shares by individuals

Abstract

Sometimes it is possible to encounter arbitration clause in agreements involving disposal of the shares by individuals. Effectiveness of such clause is not obvious although, the appraisement if the seller is a consumer might be uncertain. Currently in consumer disputes there is restriction concerning inadmissibility of an arbitration clause included in agreement made before a dispute arises. It results from the case law, that party of agreement can not be a consumer, if he is a director of a company and has actual impact on its activity. There is also an opinion, that a private investor who sells shares is a consumer. In such a case, arbitration clause included in share disposal agreement should be deemed ineffective, because of violation of requirement, which follows from art. 1164¹ the Polish Civil Procedure Code.