Section 14 – Resolution of Disputes
In the event of a dispute occurring between IBOs, an IBO and Amway or an IBO and an Approved Provider, this section provides for the appointment of an independent mediator or arbitrator, under the auspices of the Australian Commercial Disputes Centre, to mediate or to hear and resolve contentious issues.
14.1 Mediation: Any dispute, controversy or claim arising out of the relationship between and an Approved Provider or an IBO or relating to the contract of which these Rules form a part or breach of these Rules, the termination of an IBO’s IB, the desponsorship of an IBO or the placing of an IBO on probation, shall be settled by mediation administered by, in Australia, the Australian Commercial Disputes Centre Limited (ACDC) and in New Zealand, the New Zealand Institute of Chartered Accounts (NZICA), and the following provisions shall apply:
14.1.1 The mediation for an Australian dispute shall be conducted at Sydney, Australia and the mediation for a New Zealand dispute shall be conduct in Auckland, New Zealand;
14.1.2 The mediator shall be selected by Amway and the IBO from a panel of mediators nominated by ACDC or NZICA, and failing agreement within 14 days as to a mediator, by the Secretary-general for the time being of ACDC or NZICA;
14.1.3 Each of the parties shall be entitled to be represented by one duly qualified legal practitioner or other representative in addition to the party himself/herself, or in the case of a corporation an executive of the corporation, whether legally qualified or not.
14.2 Arbitration: In the event that the dispute, controversy or claim is not resolved by mediation within 21 days of the appointment of the mediator (or such longer period as is agreed between Amway and the IBO or an Approved Provider and the IBO) either party may refer the dispute, controversy or claim to arbitration administered in Australia by ACDC or in New Zealand by NZICA and the following provisions shall apply:
14.2.1 The arbitration for an Australian dispute shall be conducted at Sydney, Australia and the arbitration for a New Zealand dispute shall be conducted in Auckland, New Zealand;
14.2.2 Subject to Rule 14.2.3, the arbitration shall be conducted in accordance with the current Rules for the Conduct of Commercial Arbitrations issued by the Institute of Arbitrators Australia or the current Rules issued by the New Zealand Dispute Resolution Centre;
14.2.3 The arbitrator shall be selected by Amway and the IBO from a panel of arbitrators nominated by ACDC or NZICA, and failing agreement within 14 days as to an arbitrator, by the Secretary-General for the time being of ACDC or NZICA. The Arbitrator shall be a person other than the Mediator who has conducted the mediation pursuant to Rule 14.1;
14.2.4 The arbitrator shall have the powers of the Court of relevant jurisdiction only;
14.2.5 Each of the parties shall be entitled to be represented by one duly qualified legal practitioner or other representative in addition to the party himself/herself or in the case of a corporation, an executive of the corporation, whether legally qualified or not;
14.2.6 Examination of witnesses by the parties and by the arbitrator shall be permitted, but compliance with the rules of evidence shall not be required.
14.3 Dispute Resolution costs: The costs of any mediation pursuant to Rule 14.1, or arbitration pursuant to Rule 14.2, shall be borne equally by the IBO and Amway.
14.4 Notice requirements: An IBO proposing to exercise his/her rights under Rule 14.1 shall promptly notify Amway of Australia at its Sydney head office (PO Box 743 Chatswood NSW 2067) and Amway of New Zealand at its Auckland head office (Private Bag 94401, Botany, Auckland, 2163) by post, email or facsimile to the General Counsel within 28 days of receiving notice of Amway’s or an Approved Provider’s determination.