Arbitration involves a neutral third party or a panel that hears both sides of a dispute and makes a decision that is usually binding. It is often used when other forms of dispute resolution, such as conciliation, fail. The arbitrator acts similarly to a referee by listening to both parties and then making a judgment.

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Arbitration Is

Question 59

Multiple Choice

Arbitration is:

A) usually used when conciliation fails.
B) where disputing parties present their case to a panel of respected persons who make a judgement that both sides agree to honour.
C) where a third party acts as a referee for parties who are in dispute.
D) options A, B and C.
E) options A and B only.

Correct Answer: