Arbitration – Friend or Foe

Arbitration is an increasingly common alternative to traditional resolution of business disputes in state and federal courts.  Most sophisticated businesses have used or experienced contracts with arbitration clauses at some point in the past.  In several industries, such as Financial/Brokerage relationships, arbitration clauses have become prevalent.  Arbitration is also frequently being used as a method of dispute resolution in employment relationships and commercial construction projects. So how should mid-sized to small businesses view Arbitration?  This post will help provide a practical understanding of what arbitration actually is – and some Pros vs. Cons to consider. Arbitration is a form of dispute resolution in which two parties agree (by contract) not to take their dispute to court, but instead resolve the dispute by hiring an arbitrator to hear both sides and render a decision.     Notably absent from the above graphic…

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