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By signing a contract with an arbitration clause, parties agree to be bound by the decision of the arbitrator. For example, Company A contracts to purchase inventory parts from Company B, and the contract includes an arbitration clause. The parts are later found to be faulty, causing Company A to lose revenue.
What does it mean to arbitrate a dispute?
In and of itself, arbitration is not a bad thing. The advantages are that its speedy, done by someone who is an expert in your field and can be kept confidential if you wish. The downsides are that it can get pretty expensive since the parties have to pay for everything and that there could potentially be no appeal.
What happens when a dispute goes to arbitration?
You both put your case to an independent person called an arbitrator. The arbitrator listens to both sides, looks at the evidence youve sent in and decides what the outcome should be. In some cases, the arbitrator may choose to have several meetings with you both.
What is the meaning of arbitration dispute?
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
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arbitration | Wex | US Law | LII / Legal Information Institute
Arbitration refers to an alternative dispute resolution method where the parties in dispute agree to have their case heard by a qualified arbitrator out of
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