Question

Arbitration may be used when: A. The parties submit to it. B. The contract calls for it instead of litigation. C. When a statute requires it. D. All of the above.

Answer 1

Answer:

D. All of the above.

Explanation:

Arbitration refers to a process where a legal dispute is solved by using an impartial third party called the arbitrator (or arbitrators) that acts like a judge that will decide which party is correct. Since the arbitration process is generally voluntary, all the parties involve must agree to follow and respect the arbitrator's decision.

In order for an arbitration process to take place, the contract between the parties must include the arbitration clause and all the parties involved must have agreed to it by signing the contract. Rarely, arbitration can be mandatory because certain legal statues require it.