This is a form of an alternative dispute resolution, and it has gained large acceptance in the business world for the sole purpose of settling disputes. This can be included as a binding or a non-binding agreement when signing contracts. The main purpose of the Arbitration clause is to prevent all the disputing parties to file cases in the civil courts. Because you will not attend the court sessions this will save you time and also the expenses involved in processing a court case. Both parties have to agree on this process, and they should never be forced to follow this process. These cases are arbitrated by the American Arbitration Association which is one of the most known organization in providing these services. There are also other approved associations that can be included in the contracts. When both parties agree to the process of arbitration both the resolution provider and the arbitrator fee has to be paid. This is not expensive if you compare the process with the normal court case proceedings where you have to travel to the courts every time you are summoned. This the process is more favorable to both the parties involved because you agree on the meetings, time, venue and the dates and so you have full control over the whole matter.
Research well for the most favorable state law. For most businesses having an alternative dispute resolution that is locally available is advantageous and less expensive, and it also gives a better opportunity and the ability to have the preferred law firm to handle the matter. Always ensure that you get the one that will be most favorable to your case.
For you to be able to save on cost you must consider restricting the mediator to an up or even a down decision. For Example you can restrict him in mentioning only the loser or the winner. They can also opt for the reasoned decision, where in this case the judge gives their reasons for making this decision this depends on whether the case is complicated and will require explanations. The process of explaining and the judge giving reasons can take time and so can be expensive. Restricting the appeal will maximize the capability of settling the case before it even proceeds to the judge hearing. The parties have a chance to review the contracts and discuss them. This will help them to make the best decisions that are favorable to both the parties through the help of the mediator. The mediator can make impartial decisions so settle the dispute amicably. The arbitration can either be non-binding or binding and can be done privately. In the Binding arbitration process the judge listens to both parties evidence before making the final determination.