| (1) | The Controller of Petroleum Products may on request by a licensed retailer alleging an unfair or unreasonable contractual practice by a licensed wholesaler, or vice versa, require, by notice in writing to the parties concerned, that the parties submit the matter to arbitration. |
| (2) | An arbitration contemplated in subsection (1) shall be heard— |
| (a) | by an arbitrator chosen by the parties concerned; and |
| (b) | in accordance with the rules agreed between the parties. |
| (3) | If the parties fail to reach an agreement regarding the arbitrator, or the applicable rules, within 14 days of receipt of the notice contemplated in subsection (1)— |
| (a) | the Controller of Petroleum Products must upon notification of such failure, appoint a suitable person to act as arbitrator; and |
| (b) | the arbitrator must determine the applicable rules. |
| (4) | An arbitrator contemplated in subsection (2) or (3)— |
| (a) | shall determine whether the alleged contractual practices concerned are unfair or unreasonable and, if so, shall make such award as he or she deems necessary to correct such practice; and |
| (b) | shall determine whether the allegations giving rise to the arbitration were frivolous or capricious and. if so, shall make such award as he or she deems necessary to compensate any party affected by such allegations. |
| (5) | Any award made by an arbitrator contemplated in this section shall be final and binding upon the parties concerned and may, at the arbitrator's discretion, include any order as to costs to be borne by one or more of the parties concerned. |
[Section 12B inserted by section 13 of Act No. 58 of 2003]
