The arbitration process and how it works

Arbitration might sound like a word you have heard used in a trade union dispute. However in the business world, it is a much used term, employment contracts and credit card agreements employ arbitration too. Let us find out what arbitration means and how it works. Purpose of arbitration The process of presenting a business dispute in front of a disinterested third party for effective resolution is what arbitration is all about. The third party is known as the arbitrator and he hears the evidence that is brought forth by both the parties before he comes to a decision. A lot of times, the arbitration decision is binding on both parties. Arbitration is a form of alternate dispute resolution and it is used in place of the litigation process wherein the concerned parties would stand to lose because of the inherent process of litigation. Arbitration happens in the hope of achieving a resolution before the matter goes to the court. The inherent difference between litigation and arbitration is the processes themselves and the effect of the resultant decision on the dispute itself. The arbitration clause Normally, arbitration begins when the two concerned parties agree to settle their differences through the process of arbitration. The decision might also have been made for them by the inclusion of an arbitration clause to a contract that both the parties have signed. Arbitration is the process of bringing a business dispute to the notice of a disinterested third party, the arbitrator, who hears out the evidence brought by both sides and then makes a decision. In a lot of cases, the decision of the arbitrator is binding on both parties. Selection of the arbitrator Arbitrators are highly trained professionals who have expertise in areas like employment, commercial, labor, construction as well as international disputes. The American Arbitrators Association has a roster of arbitrators skilled in the above areas and other areas as well. Parties involved in the arbitration process can use these arbitrators for their dispute resolution. Can I have a lawyer present during arbitration? People mistakenly assume that a lawyer is not allowed to be present in the arbitration process. This is far from the truth. You are entitled to have an attorney present for the arbitration process but in actuality it is not required. However you can have an attorney advising you outside the arbitration setting. Arbitration is not as complex as litigation but that does not mean that you do not need a lawyer to advise you. Look for Chicago Arbitration Lawyer, Chicago Mediation Lawyer, Chicago Commodities Lawyer, or Chicago Futures Arbitration Lawyer for help with your case.