· Arbitration
.Definition
.Characteristics
· Other Out-of-Court
Dispute Resolution
Arbitration
denominates a non-court dispute resolving procedure including one or more neutral third parties — called the arbitrator or arbitration panel. Arbitration applies rules of evidence and procedure that are similar but often less formal than those followed in trial courts. This allows a faster, less expensive dispute settlement or decision. Arbitration is final and binding. Once a decision has been reached, there is typically no further appeal proceeding. A lot of contracts require mandatory arbitration in the event of a dispute.There are many types of arbitration:
Binding arbitration is similar to a court proceeding that gives the arbitrator the power to impose a decision which can be challenged and reviewed by a court only under very exceptional circumstances. Binding Arbitration awards can be enforceable through national court systems.
In non-binding arbitration, the arbitrator can recommend but not impose a decision.
98/257/EC: Commission Recommendation of 30 March 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes sets out four main principles of Arbitration:
- Impartiality
- Transparency
- Effectiveness
- Fairness