< Previous | Contents | Next >
2.2.2. Arbitration
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.
Advantages of Arbitration Disadvantages of Arbitration | |
♤ Fast, flexible and confidential ♤ Choice of arbitrator with expertise ♤ Limited rights of review and appeal of arbitration awards | ♤ Parties waive rights to access courts if arbitration in contracts is mandatory ♤ Pressure from powerful parties may lead to biased procedures owing to their influence ♤ High fees charged by arbitrators ♤ Limited avenues of appeal to overturn erroneous decision |