|
Arbitration is a legal process
which takes place outside of the courts, but still results in a final and
legally binding decision similar to a court judgment. Parties involved in
arbitration are effectively opting out of the court system and submitting
their case for resolution by a neutral, third party arbitrator. The reasons
for selecting arbitration vary from case
to case. Arbitration is generally faster, less expensive and more informal
than going to court. It also has the advantage of being private and confidential.
USA&M has published Rules of Arbitration, which, along with federal
and state law, govern the arbitration process and procedures. Within the
limits permitted by law, parties are free to negotiate the ground rules
under which they want the arbitration to take place, such as the number
of arbitrators or whether formal rules of evidence will apply. Binding arbitration clauses can be written into most
kinds of contracts, requiring that in the event a dispute arises in conjunction
with the contract, the parties will go to binding arbitration instead of
to court. The cost of arbitration is generally shared by the parties.
The decision of an arbitrator
is as binding on the parties to the arbitration as a court judgment, and
it can be enforced by the courts, if necessary. For additional information
about arbitration, refer to the Arbitration Questions
and Answers link to this page.
|
