ADR Arbitration Procedures & Ethics

Question 1

What is the primary purpose of arbitration in dispute resolution?

Accepted Answer

To offer a binding decision by a neutral third party

Answer

The primary purpose of arbitration is to provide a definitive and often binding resolution to a dispute through a neutral third party, the arbitrator. Unlike mediation, where parties reach their own agreement, the arbitrator hears evidence and arguments from both sides. They then render a decision that the parties have typically agreed in advance to accept as final and legally enforceable.

Question 2

Which ethical principle requires arbitrators to remain impartial?

Accepted Answer

Impartiality

Answer

Impartiality is a cornerstone ethical principle in arbitration, requiring the arbitrator to be unbiased and fair to all parties involved. This ensures that decisions are made solely on the merits of the case, without favoritism or prejudice. Upholding impartiality builds trust in the arbitration process and its outcomes.

Question 3

What is typically required to initiate arbitration?

Accepted Answer

An arbitration agreement

Answer

Arbitration is a consensual process, meaning it typically begins with a prior agreement between the parties to submit their disputes to arbitration. This arbitration agreement, often a clause within a larger contract, outlines the terms and conditions under which arbitration will proceed. Without such an agreement, parties generally cannot be compelled into arbitration.

Question 4

How must arbitrators handle confidential information?

Accepted Answer

They must keep it confidential

Answer

Confidentiality is a fundamental ethical and often legal requirement for arbitrators. They are entrusted with sensitive information shared during the proceedings and must protect it from unauthorized disclosure. This commitment to confidentiality encourages parties to be open and honest, fostering a more effective resolution process.

Question 5

What is the role of ethics in Alternative Dispute Resolution?

Accepted Answer

To promote fairness and integrity

Answer

Ethics are crucial in Alternative Dispute Resolution (ADR) to ensure that the process is conducted fairly, transparently, and with integrity. Adherence to ethical principles, such as impartiality, confidentiality, and competence, builds trust among parties and enhances the credibility of the resolution. This ultimately promotes equitable outcomes and strengthens the ADR system.

(ADR) Alternative Dispute Resolution Certification Practice Test

(ADR) Alternative Dispute Resolution Certification Practice Test

ADR Arbitration Procedures & Ethics