Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia

This empirical legal study examines the perceptions of retail customers on the dispute resolution clauses contained in the governing law and jurisdiction clauses in Islamic finance contracts in Malaysia. Since Islamic financial institutions and their customers are more likely to opt for litigation...

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Main Authors:	Oseni, Umar Aimhanosi, Adewale, Abideen Adeyemi, Mohd. Zain, Nor Razinah
Format:	Conference or Workshop Item
Language:	English English
Published:	2015
Subjects:	HG Finance HG1501 Banking K Law (General) KBP Islamic Law
Online Access:	http://irep.iium.edu.my/42481/ http://irep.iium.edu.my/42481/ http://irep.iium.edu.my/42481/1/Program_%281%29.pdf http://irep.iium.edu.my/42481/2/Customers%27_Perceptions_on_the_Dispute_Resolution_Clauses_in_Islamic_Finance_Contracts_in_Malaysia.pdf

id	iium-42481
recordtype	eprints
spelling	iium-424812018-12-12T03:33:10Z http://irep.iium.edu.my/42481/ Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia Oseni, Umar Aimhanosi Adewale, Abideen Adeyemi Mohd. Zain, Nor Razinah HG Finance HG1501 Banking K Law (General) KBP Islamic Law This empirical legal study examines the perceptions of retail customers on the dispute resolution clauses contained in the governing law and jurisdiction clauses in Islamic finance contracts in Malaysia. Since Islamic financial institutions and their customers are more likely to opt for litigation in the event of a dispute, this study explores ways of providing for unambiguous dispute resolution clauses that are well understood by the parties. Such clauses are expected to incorporate effective dispute resolution processes such as mediation and arbitration through a multi-tiered mechanism. Primary data collected through survey questionnaire administered on 160 Islamic bank customers is analysed using both factor analysis and structural equation modelling via the IBM SPSS version 20 software. The empirical legal study reveals that there is a statistically significant difference among two major groups of customers based on their legal understanding of the dispute resolution clauses in Islamic finance contracts. The group that sought further clarification has a statistically significant path from provision of legal clauses to legal understanding and indirectly to their choice of dispute resolution channels. It therefore follows that there is a need to provide for more effective clauses that allow for mediation and arbitration in the governing law and jurisdiction clauses of Islamic finance contracts in Malaysia. Such alternative dispute resolution processes can be structured in a multi-tiered manner that will only allow for litigation as a last resort. This will allow Islamic financial institutions and their customers to make informed decisions about the best option for effective dispute management. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/42481/1/Program_%281%29.pdf application/pdf en http://irep.iium.edu.my/42481/2/Customers%27_Perceptions_on_the_Dispute_Resolution_Clauses_in_Islamic_Finance_Contracts_in_Malaysia.pdf Oseni, Umar Aimhanosi and Adewale, Abideen Adeyemi and Mohd. Zain, Nor Razinah (2015) Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia. In: Forty-Second Annual Meeting of Federation of Business Disciplines: Southwestern Finance Association Annual Conference, 11th - 14th March 2015, Houston, Texas, United States of America. (Unpublished) https://www.fbdonline.org/documents/2015/Program.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance HG1501 Banking K Law (General) KBP Islamic Law
spellingShingle	HG Finance HG1501 Banking K Law (General) KBP Islamic Law Oseni, Umar Aimhanosi Adewale, Abideen Adeyemi Mohd. Zain, Nor Razinah Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
description	This empirical legal study examines the perceptions of retail customers on the dispute resolution clauses contained in the governing law and jurisdiction clauses in Islamic finance contracts in Malaysia. Since Islamic financial institutions and their customers are more likely to opt for litigation in the event of a dispute, this study explores ways of providing for unambiguous dispute resolution clauses that are well understood by the parties. Such clauses are expected to incorporate effective dispute resolution processes such as mediation and arbitration through a multi-tiered mechanism. Primary data collected through survey questionnaire administered on 160 Islamic bank customers is analysed using both factor analysis and structural equation modelling via the IBM SPSS version 20 software. The empirical legal study reveals that there is a statistically significant difference among two major groups of customers based on their legal understanding of the dispute resolution clauses in Islamic finance contracts. The group that sought further clarification has a statistically significant path from provision of legal clauses to legal understanding and indirectly to their choice of dispute resolution channels. It therefore follows that there is a need to provide for more effective clauses that allow for mediation and arbitration in the governing law and jurisdiction clauses of Islamic finance contracts in Malaysia. Such alternative dispute resolution processes can be structured in a multi-tiered manner that will only allow for litigation as a last resort. This will allow Islamic financial institutions and their customers to make informed decisions about the best option for effective dispute management.
format	Conference or Workshop Item
author	Oseni, Umar Aimhanosi Adewale, Abideen Adeyemi Mohd. Zain, Nor Razinah
author_facet	Oseni, Umar Aimhanosi Adewale, Abideen Adeyemi Mohd. Zain, Nor Razinah
author_sort	Oseni, Umar Aimhanosi
title	Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
title_short	Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
title_full	Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
title_fullStr	Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
title_full_unstemmed	Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia
title_sort	customers' perceptions on the dispute resolution clauses in islamic finance contracts in malaysia
publishDate	2015
url	http://irep.iium.edu.my/42481/ http://irep.iium.edu.my/42481/ http://irep.iium.edu.my/42481/1/Program_%281%29.pdf http://irep.iium.edu.my/42481/2/Customers%27_Perceptions_on_the_Dispute_Resolution_Clauses_in_Islamic_Finance_Contracts_in_Malaysia.pdf
first_indexed	2023-09-18T21:00:33Z
last_indexed	2023-09-18T21:00:33Z
_version_	1777410594654126080

Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia

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