Resolving a business dispute through arbitration

What is Arbitration

Arbitration is a legal alternative to a business-related dispute that usually entails a fraction of the time and money of litigation. Arbitration does not go through a legal judicial system. Both parties agree to recognize an arbitration panel as a legal authority, and agree that the decision is legally binding. If the losing party fails to pay the award amount, the winner can transfer the decision to a court, which will enforce the award judicially. Arbitration procedures are usually closed to the public. Some businesss require arbitration as the method to resolve any disputes even before entering into a contract/

Benefits of Arbiration

1. Saves time. Months vs Years.
2. Saves money.
3. Saves unwanted media coverage.

Pitfalls of Arbitration

1. Not ideal for big disputes.
2. Arbitrators are not legal experts.
3. Recovery may be difficult and the winning party still may end up in the court.
4. Some of the resolutions may be unfair but the losing party is contractually obligated to honor them.
5. Arbitrations cannot be appealed.