Define: Compulsory Arbitration

Compulsory Arbitration
Compulsory Arbitration
Quick Summary of Compulsory Arbitration

Compulsory arbitration, also known as mandatory arbitration, refers to a process where parties to a dispute are required by law or contract to resolve their disagreements through arbitration rather than litigation in court. In compulsory arbitration, both parties are bound to participate in the arbitration process and to abide by the arbitrator’s decision, which serves as a legally binding resolution of the dispute. This process is often used in commercial contracts, employment agreements, consumer agreements, and certain areas of law, such as labor disputes and securities arbitration. Compulsory arbitration can offer benefits such as faster resolution, reduced costs, and greater privacy compared to traditional court proceedings. However, it can also limit parties’ rights to access the court system and to appeal decisions, and there may be concerns about fairness, neutrality, and enforceability of arbitration awards. The use of compulsory arbitration is subject to legal requirements and limitations, and its enforceability may depend on factors such as the validity of the arbitration agreement, procedural fairness, and compliance with applicable laws and regulations.

What is the dictionary definition of Compulsory Arbitration?
Dictionary Definition of Compulsory Arbitration

A legal and binding arbitration between labour and management by a neutral third party that has been mandated by the government. Compulsory arbitration is used when collective bargaining and other negotiation methods have failed to settle outstanding issues without either side resorting to extreme measures such as strikes or terminations.

Full Definition Of Compulsory Arbitration

Compulsory arbitration refers to a legal process in which parties are required to submit their disputes to an arbitrator or a panel of arbitrators for resolution rather than going to court. This process is often mandated by law or by contractual agreement, and the decision of the arbitrator is typically binding on the parties involved. Compulsory arbitration is often used in labour disputes, consumer disputes, and other types of legal conflicts.

 

Compulsory Arbitration FAQ'S

Compulsory arbitration is a legal process in which parties involved in a dispute are required to submit their case to an arbitrator or a panel of arbitrators for a binding decision, instead of going to court.

Compulsory arbitration is typically used in specific situations where the law mandates it, such as in labour disputes, certain consumer contracts, or in some jurisdictions for certain types of civil cases.

Compulsory arbitration can provide a quicker and more cost-effective resolution to disputes compared to traditional litigation. It also allows parties to have their case heard by an impartial arbitrator who has expertise in the relevant area of law.

In some cases, parties may have the option to opt out of compulsory arbitration if both parties agree to pursue alternative dispute resolution methods, such as mediation or negotiation. However, this depends on the specific laws and regulations governing the dispute.

The selection of an arbitrator in compulsory arbitration can vary depending on the jurisdiction and the specific rules governing the process. In some cases, the parties may have the opportunity to mutually agree on an arbitrator, while in others, the arbitrator may be appointed by a designated authority.

Yes, in compulsory arbitration, the decision of the arbitrator is typically binding on the parties involved. This means that they are legally obligated to abide by the arbitrator’s decision and cannot appeal it in court.

Compulsory arbitration may have limitations, depending on the jurisdiction and the specific laws governing the dispute. For example, certain types of disputes, such as those involving constitutional rights or criminal matters, may not be subject to compulsory arbitration.

Yes, parties involved in compulsory arbitration have the right to legal representation. They can hire attorneys to advocate on their behalf and present their case before the arbitrator.

In most cases, the decision of the arbitrator in compulsory arbitration cannot be appealed in court. However, there may be limited grounds for challenging the decision, such as if there was a procedural error or if the arbitrator exhibited bias or misconduct.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 10th April, 2024.

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