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Arbitrators hear various types of cases, from small disputes between neighbors to million-dollar business conflicts. Unlike mediation, which is less effective in cases where questions of law represent the key elements of the dispute, arbitration is often used for complex legal disputes.
An example of an arbitration would be when two people who are divorcing cannot agree on terms and allow a third party to come in to help them negotiate.
arbitration in American English 1. the hearing and determining of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them.
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.
An arbitration process in which the arbitrators decision must be accepted by both parties is sometimes called binding arbitrationmeaning the arbitrators decision is final and legally binding. Example: After weeks of negotiations stalled and resulted in an impasse, the two sides agreed to enter arbitration.
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Arbitration is a method of alternative dispute resolution (ADR). It is used to develop mutually agreeable settlements between opposing parties rather than filing a lawsuit and taking the case to court. However, both parties must agree to arbitrate rather than going to trial.
What are the advantages of arbitration? The primary advantage is that the parties to arbitration have an almost free reign to determine the structure and procedure applicable to the proceedings: Full control of the process the parties can, by agreement, determine the conduct of the proceedings.
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.
Arbitration is most commonly used in the resolution of commercial disputes and is distinct from mediation and conciliation, both of which are common in the settlement of labour disputes between management and labour unions.
The Advantages and Disadvantages of Arbitration Efficient and Flexible: Quicker Resolution, Easier to schedule. Less Complicated: Simplified rules of evidence and procedure. Privacy: Keep it out of the public eye. Impartiality: Choosing the judge Usually less expensive. Finality: The end of the dispute.

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