Arbitration Commercial Arbitration Practice

Question 1

What is the primary advantage of arbitration over litigation for commercial disputes in the United States?

Accepted Answer

Arbitration offers privacy, finality, and expertise tailored to the dispute

Answer

Arbitrators are government employees providing free services

Answer

Arbitration is always cheaper than litigation regardless of complexity

Answer

Arbitration allows unlimited appeals unlike courts

Question 2

What is a 'demand for arbitration' under AAA Commercial Rules?

Accepted Answer

The formal document filed with the AAA to initiate arbitration proceedings

Answer

A court motion requesting transfer of a case to arbitration

Answer

A letter sent directly to the opposing party before arbitration

Answer

A subpoena requiring a witness to appear at an arbitration hearing

Question 3

Under AAA Commercial Arbitration Rules, what is the default number of arbitrators for disputes exceeding $1 million?

Accepted Answer

Three arbitrators

Answer

One arbitrator

Answer

Two arbitrators

Answer

Five arbitrators

Question 4

What is an 'administered' arbitration?

Accepted Answer

Arbitration managed by an institution that provides procedural rules, case administration, and appointment services

Answer

Arbitration supervised directly by a government agency

Answer

Arbitration conducted entirely online without in-person hearings

Answer

Arbitration where the court appoints the arbitrator

Question 5

What is a 'pre-hearing conference' in commercial arbitration typically used for?

Accepted Answer

Addressing scheduling, procedural, and preliminary substantive issues before the main hearing

Answer

Settling the dispute before it reaches arbitration

Answer

Selecting arbitrators

Answer

Filing the final award

Question 6

What does 'class action waiver' in an arbitration agreement mean?

Accepted Answer

A clause preventing parties from bringing or participating in class action claims, requiring individual arbitration

Answer

A waiver allowing a party to bring claims as a class in arbitration

Answer

A provision waiving arbitration fees for class members

Answer

A waiver of the right to appeal class certification decisions