First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely
A) compel arbitration.
B) review the merits of the dispute.
C) review the sufficiency of the evidence.
D) set aside any award.

Question

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely​
A) ​compel arbitration.
B) ​review the merits of the dispute.
C) ​review the sufficiency of the evidence.
D) ​set aside any award.

Quizplus · Accepted Answer

The meeting between the arbitrator and First Community's representative without the presence of General Hydraulics' representative violates the principle of due process and fair hearing. If General Hydraulics' rights were substantially prejudiced by this meeting, a court may set aside any award made in the arbitration.