Definition of 'Arbitration'
Arbitration is often used in commercial disputes, such as contract disputes, business disputes, and employment disputes. It can also be used in consumer disputes, such as disputes with a credit card company or a telecommunications company.
Arbitration is voluntary. The parties to a dispute must agree to submit their dispute to arbitration. Once the parties have agreed to arbitration, they must follow the rules of the arbitration agreement.
The arbitration process begins with the filing of a claim by one of the parties. The other party then has an opportunity to respond to the claim. The arbitrator then holds a hearing at which the parties present their evidence and arguments. The arbitrator then makes a decision, which is usually final and binding on the parties.
Arbitration has several advantages over litigation in court. Arbitration is usually faster and less expensive than litigation. Arbitration is also more confidential than litigation. In arbitration, the parties can choose the arbitrator, who is usually an expert in the area of law that is relevant to the dispute. Arbitration is also more flexible than litigation. The parties can agree on the rules of arbitration, which can be tailored to the specific needs of the dispute.
However, arbitration also has some disadvantages. Arbitration is not as public as litigation. In arbitration, the parties have less control over the outcome of the dispute. The arbitrator's decision is final and binding, and the parties cannot appeal the decision.
Overall, arbitration is a valuable tool for resolving disputes. Arbitration is faster, less expensive, and more confidential than litigation. Arbitration is also more flexible and the parties have more control over the process.
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