Is arbitration a good thing?
The industry’s public posture is that arbitration is good for consumers and class-action lawsuits are bad. This is in fact true, in most circumstances. That means that arbitration is not really Alternative Dispute Resolution, since there’s nothing for it to be an ‘alternative’ to. This is Substitute Dispute Resolution.Click to see full answer. Beside this,…
The industry’s public posture is that arbitration is good for consumers and class-action lawsuits are bad. This is in fact true, in most circumstances. That means that arbitration is not really Alternative Dispute Resolution, since there’s nothing for it to be an ‘alternative’ to. This is Substitute Dispute Resolution.Click to see full answer. Beside this, what are the advantages of arbitration?Arbitration is often faster than litigation in court, and a time limit can be placed on the length of the process. Arbitration can be cheaper and more flexible, more commercial and less formal than court. Unlike court rulings, arbitration proceedings and arbitral awards are confidential.One may also ask, what is the downside to arbitration? There are, however, also some disadvantages to arbitration as a method of resolving a dispute. If arbitration is binding, both sides give up their right to an appeal. If the matter is complicated but the amount of money involved is modest, then the arbitrator’s fee may make arbitration uneconomical. Also know, is Arbitration Better Than Court? Arbitration often is less costly than court litigation, primarily due to the compressed schedule for the completion of discovery and trial. The judge is assigned by the court without input from the parties. Thus, arbitration affords the parties the ability to select the decider, whereas court litigation does not.Why is arbitration needed?The object of arbitration is to obtain a fair resolution of disputes by an impartial third party without unnecessary expense or delay. Parties should be free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest. Courts should not interfere.
