A Brief about Arbitration |
Posted: December 11, 2017 |
Almost every area including business where there is a human involvement usually faces some kind of disputes. To resolve the dispute occurred between the parties, they usually search for a friendly resolution of whatever problem they have with each other. Here, comes the third party namely mediator into the picture, in fact, the important one that helps the parties to settle the dispute. He needs to handle the dispute very carefully. In many cases, arbitration is preferred over mediation process as a settlement technique that also involves a third but important party input. Arbitration takes a legally binding decision after listening perspective of disputed parties. On the other hand, mediation is a form of International Dispute Resolution. In mediation, an attempt of settlement negotiation is made by the parties in front of a third party. Disputing parties usually go for a non-binding resolution in mediation, whereas, there is a great probability of court trials if not resolved with arbitration. Arbitration is desired in commercial disputes where there are some issues related to the commercial transaction. Consumers and employees cases don’t have the right to access the court trials because of the virtue of the fine print contracts so that they can only opt for the arbitration process. The difference between arbitration and mediation is that the work of the mediator is to assist the disputing parties to come on a common ground where they can reach to a compromising decision, whereas, there is no involvement of the arbitrator in the settlement process. Arbitration is highly effective in resolving the International disputes. The arbitration process comes into the picture in the 16th century when the first law on arbitration was passed under English law. An arbitration hearing may use an appointed arbitrator or a tribunal. In fact, a tribunal may have any number of arbitrators. In case of arbitration, the disputed parties give the power to the arbitrator to resolve the dispute. It is an ideal alternative to litigation. Here are general principles of arbitration: a. The objective of arbitration is to give an unbiased resolution of disputes by a third party without any delay. Appointment of Arbitrators is usually made by one of three means:
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