Question

In relation to dispute resolution, explain the advantages and disadvantages of using arbitration as a mean of dispute settlement in compared to using litigation. Give out an example to better demonstrate your arguments

Answer 1

Arbitration is peaceful, faster and simpler in comparison to the litigation. However, it is more expensive than the process of litigation. The process of arbitration does not include the issues of rules of discovery and rule of evidence that are usually seen in a court case. Litigation raises the vital question of transparency and fairness. One of the disadvantages of arbitration is that of limited discovery. Within this the although arbitration has not been filed litigation procedure has already started and both the parties lose the advantage of cost savings associated with the limited discovery.

For example, arbitration can be expensive at certain times in which an arbitrator can charge up to 3000 dollars per day for the services he will provide. Lawyers are hired by the parties which make the process more expensive.

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