Arbitrator

Definition

An arbitrator is an impartial third party who is responsible for resolving disputes between two or more parties through a process called arbitration. Arbitrators are typically chosen by the disputing parties or appointed by a neutral organization to make a binding decision on the matter at hand.

5 Must Know Facts For Your Next Test

1. Arbitrators are typically selected based on their expertise in the subject matter of the dispute, their impartiality, and their ability to make fair and unbiased decisions.
2. The arbitration process is generally faster and less formal than traditional court proceedings, making it a more cost-effective option for resolving disputes.
3. Arbitrators have the authority to make binding decisions that the disputing parties are legally obligated to follow, unlike mediators who can only facilitate an agreement.
4. Arbitration is a private process, and the decisions made by arbitrators are typically confidential, unlike court rulings which are public record.
5. The use of arbitration has become increasingly common in various industries, including employment, consumer transactions, and international business disputes.

Review Questions

• Explain the role of an arbitrator in the arbitration process and how it differs from the role of a judge in a traditional court proceeding.
  • The primary role of an arbitrator is to act as an impartial decision-maker in the arbitration process. Unlike a judge in a traditional court proceeding, an arbitrator is selected by the disputing parties or a neutral organization to hear the case and make a binding decision. Arbitrators have more flexibility in their decision-making process, as they are not bound by strict rules of evidence or procedure like a court. Additionally, the arbitration process is generally more informal and private than a court trial, allowing the arbitrator to focus on the merits of the case and reach a resolution that is tailored to the specific needs of the parties involved.
• Analyze the advantages and disadvantages of using arbitration over traditional court proceedings for resolving disputes.
  • One of the primary advantages of using arbitration is the speed and cost-effectiveness of the process compared to traditional court proceedings. Arbitration is generally faster and less formal, which can result in significant cost savings for the disputing parties. Additionally, the confidentiality of the arbitration process can be beneficial, especially in cases involving sensitive or proprietary information. However, the binding nature of the arbitrator's decision can also be a disadvantage, as the parties have limited options for appeal. Furthermore, the lack of strict rules and procedures in arbitration can sometimes lead to concerns about the fairness and consistency of the decision-making process. Ultimately, the choice between arbitration and traditional court proceedings will depend on the specific needs and circumstances of the disputing parties.
• Evaluate the role of arbitration in the broader context of alternative dispute resolution (ADR) and discuss how it fits into the overall landscape of conflict resolution strategies.
  • Arbitration is one of the primary forms of alternative dispute resolution (ADR), which also includes mediation, negotiation, and other methods of resolving conflicts outside of the traditional court system. Compared to other ADR techniques, arbitration is unique in its binding nature, as the arbitrator's decision is legally enforceable and the parties are obligated to abide by it. This makes arbitration a more formal and final process than mediation, where the parties work towards a mutually agreeable solution, or negotiation, where the parties directly communicate to reach an agreement. Within the broader context of ADR, arbitration is often seen as a more structured and decisive approach to conflict resolution, offering a middle ground between the formality of the court system and the flexibility of other ADR methods. The choice to use arbitration over other ADR strategies will depend on the specific needs and preferences of the disputing parties, as well as the nature and complexity of the dispute itself.

Related terms

Arbitration: Arbitration is a form of alternative dispute resolution where the disputing parties agree to have their case heard and decided by an impartial arbitrator instead of going through the traditional court system.

Mediation: Mediation is a process where a neutral third party, the mediator, assists the disputing parties in reaching a mutually agreeable solution, but the mediator does not have the authority to impose a binding decision.

Negotiation: Negotiation is a process where the disputing parties communicate directly with each other to try to reach a mutually acceptable agreement without the involvement of a third party.