Arbitration is a technique that is used to resolve an argument or dispute. It is a form of persuasion that will resolve a dispute outside of the court system. Two people, or parties, who are in a dispute for example may ask a arbitrator to resolve their dispute. The two people will agree to accept the terms or settlements that the arbitrator imposes. In this type of legal situation the two parties will be bound by this decision. The decision will be both enforceable in court and legally binding in regards to any terms of the resolution.
You will find arbitration situations in a variety of legal situations but primarily with commercial disputes that involve international commercial transactions. There are also specific countries that will use arbitration in employment and consumer matters. It should be noted that arbitration can be either mandatory or voluntary. Mandatory arbitration will only occur when two parties agreed to handle all of their future disputes by this means. This type of arbitration can be either nonbinding or binding depending on the original agreement.
Arbitration is normally quicker than litigation in a courtroom setting. Once a case has been settled by arbitration there are usually strict limitations of appeal. This is often advantageous because it means that there will be a limit to the duration of the dispute and any liability that is associated with the dispute. An arbitration that is mandatory and binding means that both parties will waive their right to have a jury or judge decide upon the matter.
Great Britain and the United States pioneered the use of arbitration when it came to resulting their differences. Arbitration was first used in 1795 in the Jay Treaty. This arbitration helped to relieve major tensions that were developing between Great Britain’s support for the Confederacy during the American Civil War.