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Buyer A and Supplier B have had a disagreement regarding a breach in the contract. They are looking to resolve the issue via arbitration. Which of the following is true about arbitration?
Suggested Answer: A
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The outcome is binding and enforceable is the correct answer. However the ruling can be appealed. Arbitration is a flexible approach, and the outcome doesn't set legal precedent. The role of the arbitrator is to reach a decision, only in mediation is the role of the third party to facilitate dialogue rather than reach a decision. See p.80 for more information on arbitration.
35 comments · newest first
AM
Amos
11 months ago
The arbitrator's role is mainly to facilitate dialogue.
CO
Cordelia
11 months ago
Wait, does arbitration really set legal precedents?
CH
Christiane
12 months ago
I thought there were strict rules, but not as strict as court.
EL
Elinore
12 months ago
Totally agree, that's a key point!
NE
Nenita
1 year ago
The outcome is binding and enforceable.
MA
Matthew
1 year ago
I definitely remember that arbitration doesn't set legal precedents, so D seems wrong to me.
GA
Galen
1 year ago
I feel like I saw a practice question where the arbitrator's role was more about making decisions than just facilitating dialogue, so I'm leaning away from C.
AS
Ashanti
1 year ago
I'm not entirely sure, but I remember something about arbitration being less formal than court, so maybe B isn't true?
MY
Myra
1 year ago
I think option A is correct because arbitration outcomes are usually binding, right?
VI
Viva
1 year ago
I'm a little confused by the options here. The arbitrator's role is to facilitate dialogue, but the outcome is also binding? That seems a bit contradictory to me. I'll have to re-read the question and options more closely.
CL
Clorinda
1 year ago
Okay, let me think this through step-by-step. Arbitration is an alternative dispute resolution process, so it has to have some structure and rules. And the whole point is to resolve the disagreement, so the outcome must be binding, not just a recommendation. I'll go with A.
BR
Broderick
1 year ago
Hmm, I'm a bit unsure about this one. I know arbitration has a formal process, but I can't remember if the outcome is binding or not. I'll have to think this through carefully.
DI
Diane
1 year ago
This question seems pretty straightforward. I'm pretty confident I know the answer is A - the outcome of arbitration is binding and enforceable.
PE
Pearly
2 years ago
C) just sounds like conflict resolution 101 - the arbitrator is there to help, not make the decisions for us.
GA
Galen
2 years ago
D) the outcome will set a legal precedent
TO
Tony
2 years ago
C) the arbitrator's role is to facilitate dialogue
KA
Katina
2 years ago
B) there are strict rules and processes to follow
BA
Basilia
2 years ago
A) the outcome is binding and enforceable
LA
Latonia
2 years ago
This seems like a straightforward legal question, unlike that last one about configuring a network router. I'm sticking with A).
TI
Tiara
2 years ago
I'll go with A) - can't argue with a legally binding outcome, even if the process is a bit stuffy.
EM
Emelda
2 years ago
C) the arbitrator's role is to facilitate dialogue
ME
Melissia
2 years ago
B) there are strict rules and processes to follow
RE
Ressie
2 years ago
A) the outcome is binding and enforceable
KA
Kanisha
2 years ago
B) sounds about right - there are formal rules and procedures that must be followed in arbitration.
HE
Helene
2 years ago
C) the arbitrator's role is to facilitate dialogue
LI
Lindsey
2 years ago
B) there are strict rules and processes to follow
LE
Leonor
2 years ago
A) the outcome is binding and enforceable
AL
Alonso
2 years ago
I think the answer is C) the arbitrator's role is to facilitate dialogue because they are supposed to help the parties reach a resolution.
DA
Dalene
2 years ago
I disagree, I believe the answer is B) there are strict rules and processes to follow.
GL
Glen
2 years ago
I think the answer is A) the outcome is binding and enforceable.
CA
Camellia
2 years ago
A) is definitely the correct answer here. Arbitration decisions are legally binding and enforceable.
GR
Gretchen
2 years ago
A) Yes, the outcome of arbitration will set a legal precedent for future cases.
DO
Dominga
2 years ago
C) The arbitrator's role is to facilitate dialogue between the parties involved.
LE
Leoma
2 years ago
B) That's right, there are strict rules and processes to follow in arbitration.
EU
Eulah
2 years ago
A) is definitely the correct answer here. Arbitration decisions are legally binding and enforceable.