How does the arbitration process work?
Arbitration is the non-judicial process of resolving a dispute through the use of an impartial third party whose decision the parties have agreed to accept. Unless otherwise agreed, the findings of the arbitrator are binding and final, not subject to appeal, and can be challenged only in limited circumstances.
The following steps are basic to the arbitration process :
- Selection of an arbitrator as contractually agreed
- Review of evidence, testimony and briefs by the arbitrator
- Arbitrator renders an opinion on liability and damages "award of the arbitrator"
- Confirmation by a court of appropriate jurisdiction and issue of a judgment
Arbitration are often specified in many business contracts as the method for dispute resolution in contracts including credit card agreements, insurance contracts, rental agreements, sales contracts and other business contracts.
The decision may be binding or non-binding depending on the contract.
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