Under the terms of a contract between a supplier and a retailer, disputes concerning coverage were to be submitted to a three-member board, which would render a decision. One member of the board was selected by the retailer, and one by the supplier. Those two members then selected the third. What type of ADR is this?
A)Negotiation
B)Mediation
C)Arbitration
D)Litigation

Question

Under the terms of a contract between a supplier and a retailer, disputes concerning coverage were to be submitted to a three-member board, which would render a decision. One member of the board was selected by the retailer, and one by the supplier. Those two members then selected the third. What type of ADR is this?
A)Negotiation
B)Mediation
C)Arbitration
D)Litigation

Quizplus · Accepted Answer

This describes arbitration, where a neutral third party (or parties) makes a decision regarding a dispute. In this case, the three-member board acts as the arbitrator(s).

Under the Terms of a Contract Between a Supplier and a Retailer