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Selecting an Arbitrator, Interpreting Ambiguous Contracts

Detail the process normally utilized in the selection of an arbitrator. How does the selected arbitrator interpret ambiguous contract provisions?

Differentiate the five principles that govern the arbitration of grievances under collective bargaining.

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Both parties mutually agree upon an arbitrator. Typically experienced arbitrators are selected. Initially, the parties determine how many arbitrators will be selected. In small and mid-size cases, one arbitrator is usually used, while in large complex cases a panel of three arbitrators may be preferred. Typically the parties attempt to "mutually agree on the appropriate individual for their case" (Shampnoi, 2005). This is often based on an arbitrator's past experience (i.e. a CPA for business valuation disputes). If the parties cannot agree, they may follow the "strike and rank method, outlined in R-11 of the American Arbitration Association's (AAA) Commercial Arbitration Rules and Mediation Procedures" (Shampnoi, 2005) in which qualifications needed for the arbitrator are outlined by each party and a list of potential candidates are selected by the case manager. In the event there is still not a clear choice, candidates are ranked, and results are tallied based on the highest number of points. The AAA will pick if the parties do not submit lists. ...

Solution Summary

This detailed solution details the process normally utilized in the selection of an arbitrator. It explains how the selected arbitrator interprets ambiguous contract provisions. The solution also differentiates the five principles that govern the arbitration of grievances under collective bargaining. Includes APA formatted references.

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