Arbitration Flashcards
1
Q
Define arbitration
A
Private method of ADR, where the parties agree their dispute will be heard and decided by an arbitrator, not a judge.
2
Q
What are the disadvantages of arbitration?
A
- Parties choose their own arbitrator, and can therefore decide whether the matter is best dealt with an expert, lawyer or arbitrator.
- If there’s a question of quality, it can be decided by an expert in that field, which saves expenses and time.
- Hearing time and place can be arranged to suit both parties.
- Actual procedure is flexible and parties can choose that which is most suited to the situation. Makes process informal and relaxed.
- Matter is dealt with in private, no publicity = less stress (good for businesses)
- Dispute is resolved more quickly than in court.
- Cheaper than court.
- Award is normally final and can be enforced through the courts.
- Paper hearings are available - parties can carry on with their lives.
3
Q
What are the disadvantages of arbitration?
A
- No legal aid available.
- Unexpected legal point may arise which is not suitable for a non-lawyer arbitrator to decide.
- Fees for a professional arbitrator can be expensive.
- Expensive if parties opt for a formal hearing, with witnesses giving evidence and lawyers representing both sides.
- The rights of appeal are limited.
- Delays for commercial and international arbitration may be nearly as great as those in courts if a professional arbitrator and lawyers are used.
