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What is arbitration?

What is arbitration?
What are the major types of arbitration? Give examples of each.
What is judicial proceeding? Give 2 examples of judicial proceedings.
What are the differences between arbitration and judicial proceedings?
How do they apply to public and private sector collective bargaining situations

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Interesting set of questions! Let's take a closer look.


1. What is arbitration?

Arbitration is an informal trial to resolve a dispute before a neutral party or parties (arbitrators) who hear testimony, apply the law and render a decision. Arbitration may be mandatory (required by law or contract) or non-mandatory. It may be binding (no right of appeal) or no-binding (right of appeal is reserved). http://www.national1credit.com/Commonly_Used_Legal_Terms1.html

Once the parties have decided to use arbitration and the process has begun, they usually give up their right to seek a resolution of the matter elsewhere, such as in court (http://www.adrnow.org.uk/go/SubSection_1.html).

Arbitration is used widely for international disputes, disputes between major corporations; employment rights disputes, and consumer disputes.

2. What are the major types of arbitration? Give examples of each.

Three types of arbitration are:

(1) Voluntary, Binding: Binding arbitration involves having a neutral person (or a panel of neutral persons) decide a dispute, after hearing each party's presentation of evidence and argument. The parties agree in advance that the decision (award) of the neutral is to be final. Generally, there are no appeals from an arbitrator's award, though parties may seek judicial relief from binding arbitration if the arbitrator exceeds the authority conferred under the parties' agreement to arbitrate, or if the arbitrator denies a party a fair hearing, or demonstrates bias or prejudice e.g. disputes between major corporations (http://www.socialstudieshelp.com/Eco_collective_bargaining.htm).

(2) Voluntary, Non-binding (advisory): For example, two parties agree to present their dispute together. The award of the arbitrator is not intended to be final or binding. Rather, the award is intended to provide guidance to the parties so that the parties can consider the persuasive influence of their positions, as reflected by the advisory arbitrator's award e.g. employment rights disputes ...

Solution Summary

Discusses various aspects of arbitration e.g. major types, judicial proceeding, differences between arbitration and judicial proceedings, and how they apply to public and private sector collective bargaining situations. Examples are provided.