Arbitration is a form of alternative dispute resolution (ADR) in which a neutral third party, known as an arbitrator, hears arguments and evidence from disputing parties and renders a binding decision to resolve the conflict. It is a private, confidential process that serves as an alternative to litigation in court. Arbitration is commonly used in various fields, including commercial, labor, and international disputes. The process begins when the parties agree to submit their dispute to arbitration, either through a pre-existing arbitration clause in a contract or by mutual agreement after a dispute arises. The parties then select an arbitrator or a panel of arbitrators, who are often experts in the subject matter of the dispute. During the arbitration hearing, each party presents their case, including witness testimony and documentary evidence. The arbitrator considers the evidence, applies the relevant law or contract terms, and issues a decision, known as an arbitral award. This award is typically final and binding on the parties, with limited grounds for appeal. Arbitration offers several advantages over traditional litigation, such as greater flexibility, faster resolution, and the ability to choose an arbitrator with specialized knowledge. However, it also has some drawbacks, such as limited discovery and the potential for higher upfront costs.
dispute resolution, alternative dispute resolution, arbitrator, binding decision, arbitration clause, arbitral award, confidential process, contract disputes
CITATION : "Robert Anderson. 'Arbitration.' Design+Encyclopedia. https://design-encyclopedia.com/?E=431293 (Accessed on July 26, 2024)"
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