What is arbitration?

What is arbitration?

• A. A form of ADR in which the disputing parties present their cases before an arbitrator
• B. A court trial with a judge
• C. A mediation by a neutral third party
• D. A negotiation

Answer: (A)

Arbritration is a form of alternative dispute resolution where the disputing parties present their case to an arbitrator who issues a binding decision, called an award. It’s usually private, can be faster and more flexible than going to court, and the procedures are often set by agreement or institutional rules. The key difference from a court trial is that there isn’t a public judge or jury; the arbitrator acts as the decision-maker. From mediation, it differs because a mediator only helps parties reach an agreement and does not issue a binding decision. From negotiation, it differs because a third party (the arbitrator) is involved and renders a decision. International and commercial contracts frequently include arbitration clauses, and awards are generally enforceable in many jurisdictions under international conventions.

Arbritration is a form of alternative dispute resolution where the disputing parties present their case to an arbitrator who issues a binding decision, called an award. It’s usually private, can be faster and more flexible than going to court, and the procedures are often set by agreement or institutional rules. The key difference from a court trial is that there isn’t a public judge or jury; the arbitrator acts as the decision-maker. From mediation, it differs because a mediator only helps parties reach an agreement and does not issue a binding decision. From negotiation, it differs because a third party (the arbitrator) is involved and renders a decision. International and commercial contracts frequently include arbitration clauses, and awards are generally enforceable in many jurisdictions under international conventions.