Types Of Arbitration
There are four types of arbitrations that are carried out in the United States. Several people do not have a complete understanding of arbitration, and they think that it is by default a judicial process.
This is not true as a separate body called the NAF also settles disputes through arbitration for many companies.Every consumer who has a credit card or a car loan or any type of mortgage has signed an agreement saying that they will settle their disputes though mandatory arbitration.
The types of arbitration available are binding, non binding, court and independent arbitrations. The binding arbitration is where the parties agree on the fact that neither of them will go to the court and will abide by the arbitrator's decision. In this case, the parties do not have an option to go to court.
The non binding arbitration is a method where either of the parties can hold their discretion to the arbitrator’s decision, and have the option of going to court if they are dissatisfied. However, many attorneys say that this is the most ineffective method of settling disputes as it never works. In the process, only the attorneys and the arbitrators end up making money.
In a court appointed arbitration the judge will appoint an arbitrator who will hear the case and give a ruling. This is another form of binding arbitration.
An independent arbitration is very liberal and allows you to set your own fees based on the settlement received from the client. In this case each party can have their own attorney, and the case will function as a regular judicial case.
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