Every contract made subject to ICA Bylaws and Rules, or subject to ICA arbitration is by definition governed by and subject to English Law. This is the case wherever the location of the contacting parties and whatever the country of performance of contractual obligations. ICA arbitration is governed by the English Arbitration Act 1996.

The ICA arbitration system is essentially based on a tribunal system. Each party is given the opportunity to nominate their own arbitrator and a third arbitrator, who acts as the Chairman of the Tribunal, is appointed by the ICA.

The use of a sole or single arbitrator is sometimes a preferred option and is one that is open to parties trading under the jurisdiction of the ICA. It is an option that is open when the contracting parties so agree. The use of a sole arbitrator by choice of the parties can be recommended to achieve swift resolution where parties can put their trust in the expertise of a qualified, disinterested individual. It is also a cost effective choice to resolve contract problems.

Cotton arbitrations falling under the jurisdiction of the International Cotton Association (ICA) are distinctly divided into technical and quality arbitrations. Quality arbitrations are based on the manual examination of quality characteristics and those that can only be determined by instrument testing. Technical arbitrations cover all other issues, such as failure to ship, failure to open an appropriate Letter of Credit, weight issues, country damage and so on.