Which of the following statements best represents the distinction between binding and nonbinding arbitration?
A) Unlike nonbinding arbitration, binding arbitration takes place at a court, in the presence of a judge.
B) If the arbitration is nonbinding, the decision and award of the arbitrator can be appealed to the courts.
C) A nonbinding arbitration takes place at a court, in the presence of the jury.
D) A nonbinding arbitration implies that the arbitrator's decision must be reinforced by the courts.

Question

Quizplus · Accepted Answer

The key difference between binding and nonbinding arbitration is whether or not the decision of the arbitrator is final and legally binding. In binding arbitration, the decision of the arbitrator is final and legally binding, whereas in nonbinding arbitration, the decision is advisory and not legally binding. Option B correctly represents this distinction by stating that if the arbitration is nonbinding, the decision and award of the arbitrator can be appealed to the courts. The other options are incorrect as they either provide incorrect information or misrepresent the difference between binding and nonbinding arbitration.

Which of the Following Statements Best Represents the Distinction Between