Question

What is the difference between binding arbitration and advisory arbitration? Why do some consider “advisory arbitration” to be a misnomer?

Answer 1

Arbitiration is nothing but a technique for resolving the dispute alternative, it is run by court for the person  seeking to resolve disputes, it is used in employment and securities trading agreements to many kinds of consumer contracts, An arbitrator’s role is almost equal to a judge who understands the case and respond to that accordingly.There are two types of arbitration binding arbitration and non binding arbitration

Binding arbitration is an arbitration in which the law is binded if one company hires an employee and bind to give a job and he is working and getting salary regularly though he is not interested in the rules he cannot file a case because as rules he is getting intime salaray. arbitrator’s decision can then not be appealed against.

Non-binding arbitration is arbitration in which the arbitrator still take a decision on the outcome of the dispute, but this decision is not binding, and no award is issued,each disputing party is at liberty to rework the decision of the arbitrator and inplace of request to a formal trial.

Generally the arbitration agreement will have a time limit for rejection of the arbitration. If neither party refuse the arbitration decision before the deadline, it is review the valid settlement agreement and was ordered by the court it happens the final judgement.