Contracts & ExecutionQuestion 834 of 1605
One commonly cited advantage of arbitration over traditional litigation is that it:
a.Eliminates the need for any written contract
b.Always guarantees a larger award
c.Can be faster, more private, and less formal than a court trial
d.Allows unlimited appeals of the decision
Explanation
Arbitration is often chosen because it can be quicker, more private, and less formal and expensive than a court trial, and the parties can select an arbitrator with industry knowledge. It does not guarantee a larger award, does not remove the need for a contract, and in fact typically offers very limited appeal rights, since finality is one of its features. Speed, privacy, and flexibility are its recognized benefits.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)