In arbitral proceedings, the applicable procedural law may be chosen by the parties.

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Consider the statement in the context of arbitration practices. 
Option 1 (True): In arbitral proceedings, the applicable procedural law may be chosen by the parties. This is generally accurate because parties can agree to the procedural framework governing the arbitration, such as adopting particular arbitration rules (e.g., UNCITRAL, ICC) or choosing a governing process for how the arbitration will be conducted. In many systems, the seat of arbitration (lex arbitri) will influence or determine the default procedural law, but party autonomy often allows the incorporation of alternative procedural arrangements through the arbitration agreement or institutional rules. 
Option 2 (False): Saying the procedural law cannot be chosen by the parties would be incorrect, as the prevailing approach in international arbitration is to respect party autonomy regarding procedural matters, subject to mandatory rules and the seat’s influence. However, it is worth noting that there are constraints: some mandatory procedural provisions of the law of the seat or public policy considerations may limit or override party-chosen procedures, and in some jurisdictions the lex arbitri may still constrain certain aspects. But these constraints do not generally negate the core principle that parties can select or influence the procedural framework, making a blanket statement that they cannot be chosen inaccurate. 
In summary, the first option reflects the accepted understanding that parties have the ability to determine or influence the procedural regime of arbitration through their agreement and choice of rules and seat, while the second option overstates limitations and fails to acknowledge party autonomy in procedural matters.

25_2 LAW3000 Business Law Term 6

In arbitral proceedings, the applicable procedural law may be chosen by the parties.

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