See also: Mediation
Arbitration is a form of Alternative Dispute Resolution (ADR). This method allows disputes to be settled outside of court. There are three main types of arbitration that are commonly used: compulsory, final offer, and voluntary. Arbitration is usually quicker and cheaper than court judgments.
To both parties:
- Arbitration is fast. It takes only about 120 days until a dispute is settled
- Arbitration presents a more informal setting
- Arbitration is binding
- Arbitration may grant awards
- Arbitration involves attorneys that specialize in legal advice.
To the consumer:
- If the contractor doesn’t comply, his/her license may be suspended/revoked.
To the contractor:
- Unless the contractor fails to comply, the complaint won’t be disclosed to the public.
- The contractor’s license will not be suspended/revoked unless he/she does not comply with the arbitrator’s award.
Types of Arbitration
This type of arbitration occurs when one of the parties' consent is enforced due to statutory reasons. Usually this occurs when a company and an public employee have labor disputes.
Final Offer Arbitration
This type of arbitration occurs when the arbitrator has to choose one side or the other's final offer that was submitted before reviewing the issue. Compromise is not permitted, the arbitrator must choose the offer that is closest to the correct outcome.
This type of arbitration occurs when both parties agree to having an arbitrator to come to a compromise.
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