QUESTION 2 (25 Marks)

Sophie, the Chief Financial Officer of Young Cold Country Wines Pty Limited ("the Company"), is in the process of constructing a wind farm on land owned by the Company. Sophie envisages that the Company by generating its own electricity will save approximately $100,000 per year.

The Company enters into a contract with Canadian Wind Turbines Pty Ltd (Wind Turbines") for the purchase of the wind turbines and the construction on land at Young.

The contract provides;

1. The parties to the contract are Young Cold Country Wines Pty Ltd ("the Company") and Canadian Wind Turbines Pty Ltd ("Wind Turbines").
2. The purchaser agrees to pay Wind Turbines $A5,000,000 for five wind turbines and a construction fee of $5,000,000.
3. Payment to be made in 10 equals bi monthly instalments commencing on the first business day of January 2022.
4. The wind turbines are to be safely loaded on a vessel for shipping to Australia before the last day of January 2022 and construction must be commenced by 30 March 2022.
5. In the event of a dispute, the dispute must be referred by either party to arbitration. Any arbitration is to be conducted pursuant to the UNCITRAL Model Law on International Commercial Arbitration ("Model Law").
6. In the event of referral of a dispute to arbitration, the Arbitration Panel will have three arbitrators, one from Australia, one from Canada and one to be appointed by The International Wind Farm Development Organisation.
7. Any Arbitration will be held in Singapore and conducted in English.

On 15 February 2022, Sophie emailed Wind Turbines asking for advice on the date the wind turbines were shipped and the name of the ship and the anticipated date of commencement of construction.

Wind Turbines advised that there had been a delay in production of turbines and they were amending the contract terms to increase the cost of the wind turbines by 20%, no turbine would be shipped to Australia until a further payment of $2,000,000 was made by the Company.

The Company has made the first two payments in accordance with the contract.

Sophie referred the matter to arbitration in accordance with the contract. The Australian Arbitrator is the head of a large wind farm development company she has significant expertise in developing and financing wind farms, the Canadian appointee is the sister-in-law of one of the directors of Wind Turbines with expertise in foreign currency trading. The third director is the ex -natural resources energy minister for Sweden, he has a great deal of expertise in wind farm financing and development.

Sophie, on receiving the list of proposed arbitrators is quite concerned and seeks your advice on the following:

1. Can an arbitrator appointed pursuant to the Model Law by one of the parties involved in an arbitration be challenged by the other party and if so on what grounds can the appointment be challenged. In answering the question ensure you advise Sophie on any relevant time limits for the challenge. (20 Marks)
2. Assume that the Company is unsuccessful in the arbitration and a monetary award is made against them can Wind Turbines enforce the arbitration award in Australia? (Discuss any relevant convention, legislation and the registration process) (5 Marks).

(In answering this question address dispute resolution and registration of foreign judgments only)

USE IRAC.