Arbitrator

An impartial person chosen by the parties to solve a dispute between them. An arbitrator is empowered to make a final determination concerning the issue(s) in controversy and is bound only by his own discretion.
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Definition

An arbitrator is a neutral third-party individual chosen by disputing parties to assist in resolving their conflict. The arbitrator listens to the evidence and arguments presented by each side and makes a determination that is legally binding. This process, known as arbitration, is often an alternative to going through the judicial court system.

Examples

  1. Commercial Arbitration: Businesses often use arbitrators to settle contract disputes privately and efficiently.
  2. Labor Arbitration: Employers and unions may turn to arbitrators to resolve disagreements related to employment terms.
  3. Consumer Arbitration: Customers and companies might engage an arbitrator to handle disputes over services or products.

Frequently Asked Questions (FAQs)

Q1: How is an arbitrator selected?

A1: Arbitrators can be chosen by mutual agreement of the disputing parties or appointed by an arbitration organization.

Q2: Is an arbitrator’s decision final?

A2: Yes, unless the arbitration agreement specifies that the decision can be appealed or reviewed, an arbitrator’s ruling is typically final and binding.

Q3: What qualifications do arbitrators generally have?

A3: Arbitrators usually possess substantial expertise in the relevant field of dispute and may have legal, commercial, or technical backgrounds.

Q4: Can an arbitrator’s decision be challenged in court?

A4: It is very difficult to challenge an arbitrator’s decision in court; courts will usually only overturn an arbitration decision in cases of evident bias, fraud, or procedural misconduct.

Q5: Is arbitration confidential?

A5: Yes, one of the advantages of arbitration is that it is usually confidential, which can help protect the privacy and reputation of the parties involved.

  • Arbitration: A process in which a dispute is submitted, with the agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.
  • Mediation: A form of alternative dispute resolution where an impartial third party helps the disputing entities reach a mutually agreeable solution.
  • Binding Arbitration: Arbitration where the parties agree to accept the arbitrator’s decision as final and enforceable.
  • Non-binding Arbitration: Arbitration where the parties can choose whether or not to agree to the arbitrator’s decision.

Online References

  1. American Arbitration Association (AAA) - adr.org
  2. International Chamber of Commerce (ICC) Arbitration - iccwbo.org
  3. The Chartered Institute of Arbitrators (CIArb) - ciarb.org

Suggested Books for Further Study

  1. “The Handbook of Arbitration” by Thomas H. Colter
  2. “International Arbitration: A Commentary on the UNICITRAL Model Law” by Howard M. Holtzmann and Joseph E. Neuhaus
  3. “The Principles and Practice of International Commercial Arbitration” by Margaret L. Moses

Fundamentals of Arbitration: Business Law Basics Quiz

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Arbitration