Taking any kind of business dispute to court can be expensive and time-consuming. Because of this, alternative means of dispute resolution are very popular with many business owners. A common form of alternative dispute resolution is arbitration.
Whether or not it is better to litigate or arbitrate depends on many factors, one of which is the willingness of both parties to arbitrate. According to FindLaw, it is possible to arbitrate nearly any civil business dispute, but both parties must agree to the process first.
What if the other party says no?
In the event that one party wishes to arbitrate a dispute, the other party must agree as well. One party’s desire to arbitrate does not overtake the desire of the second party to take the matter to court.
However, it is somewhat rare for a buisness entity to decide on litigation rather than arbitration. In fact, arbitration agreements are so common that many consumers agree to them on a daily basis when signing up for various services or purchasing items from online outlets. In many cases, business entities include agreements to arbitrate rather than litigate disputes in initial contracts.
What are the benefits of arbitration?
In most cases, arbitration results in a quicker and cheaper process as compared to traditional litigation, which is why it is so popular. In certain circumstances, the ability to choose your own personal arbitrator is also important. For instance, if you are in a vertical where the ‘judge’ figure having subject matter expertise is just as (if not more( important than legal expertise, arbitration might be favorable.