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Arbitration ... bite size

Arbitration is one of the main forms of alternative dispute resolution. 

Arbitration involves the parties voluntarily submitting their dispute to a third party (the arbitrator) and agree to be bound by the arbitrators decision. 

The Arbitration Act 1996 regulates the operation of arbitration procedures and the behaviour of the arbitrator. 

Advantages of arbitration: 

  • privacy
  • less expensive than litigation
  • quicker than litigation

Disadvantages of arbitration: 

  • arbitrators have fewer powers than the courts to obtain evidence from the parties
  • arbitrators may lack necessary legal knowledge

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