How does final offer arbitration FOA)offer a way around some of the difficulties of conventional arbitration?
A)It creates a very severe disincentive to unreasonable behaviour,and thus increases the likelihood of settlement.
B)It always uses a single arbitrator,whereas conventional arbitration normally uses a three- person panel.
C)It is always conducted in a warm room,and therefore the "chilling" effect cannot occur.
D)It increases the range of options available to the arbitrator.
E)It gives the parties a warm and cozy feeling that increases the likelihood of settlement.

Question

Quizplus · Accepted Answer

Final offer arbitration creates a severe disincentive to unreasonable behavior by requiring the parties to submit their best and final offer, which the arbitrator must choose in its entirety without modification. This incentivizes both parties to make reasonable offers to increase the likelihood of settlement, as the arbitrator may choose the other party's offer if they perceive it to be more reasonable. This helps to overcome the difficulties of conventional arbitration, where parties may engage in unreasonable behavior due to the lack of consequences for their actions.

How Does Final Offer Arbitration FOA)offer a Way Around Some