67Initiating an ADR process

67 Initiating an ADR process

(1) A party (the initiating party) to a grocery supply agreement may initiate an ADR process by notifying the other party (the responding party) in writing that the initiating party wishes to have a dispute relating to this Code (including the agreement) resolved by an ADR process under this Subdivision. Mediation initiated by a supplier (2) If: (a) the initiating party is a supplier; and (b) the ADR process is mediation; and (c) an ADR practitioner is appointed under section 68 for the mediation; each party must attend the mediation of the dispute under this Subdivision.

Civil penalty:

(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.

(3) However, subsection (2) does not apply if: (a) taking part in the mediation would mean taking part in 2 ADR processes at the same time in relation to the same dispute; or (b) a process brought by the supplier: (i) under Subdivision A (about the Code Mediator) or B (about the Code Supervisor); and (ii) in relation to a complaint that is the same as the dispute; is still ongoing and a reasonable period for completing that process is still to end. Arbitration initiated by a supplier (4) If the initiating party is a supplier and the ADR process is arbitration, the responding party must notify the initiating party: (a) in writing; and (b) within 10 business days of receiving the notification under subsection (1); whether the responding party agrees to attend, and accept the outcome of, an arbitration in accordance with a written agreement between the parties that is consistent with this Subdivision.

Note: The responding party need not agree to arbitration, but must choose whether to agree to arbitration.

Civil penalty:

(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.

ADR process initiated by a large grocery business (5) If the initiating party is a large grocery business, the responding party must notify the initiating party: (a) in writing; and (b) within 10 business days of receiving the notification under subsection (1); whether the responding party agrees: (c) to attend the ADR process under this Subdivision; and (d) if the ADR process is arbitration—to do so, and to accept the outcome of an arbitration, in accordance with a written agreement between the parties that is consistent with this Subdivision.

Note: The responding party need not agree to the ADR process, but must choose whether to agree to the ADR process.

Civil penalty: