What is the primary purpose of arbitration in dispute resolution?

What is the primary purpose of arbitration in dispute resolution?

• A. To escalate disputes to a court
• B. To provide a fast-tracked litigation process
• C. To help parties recover damages through an arbitrator
• D. To eliminate disputes entirely

Answer: (C)

The primary purpose of arbitration in dispute resolution is to help parties resolve their disputes in a more efficient and private manner compared to traditional court litigation. Arbitration involves an arbitrator or a panel making a decision on the dispute after hearing evidence and arguments from both sides. This process is generally designed to be less formal and quicker than court proceedings, which aligns with the concept of recovering damages or resolving issues without the extensive delays often associated with litigation.

Arbitration can also offer flexibility in terms of the rules and procedures used, and the arbitrator's decision is typically binding, meaning that it resolves the dispute in a definitive way. This choice effectively assists the parties in finding closure and potentially recovering damages, which is a significant aspect of dispute resolution.

In contrast, options that suggest escalating disputes to a court or eliminating disputes entirely do not reflect the true aim of arbitration, which focuses on finding a resolution rather than avoidance. The option suggesting a fast-tracked litigation process may also confuse arbitration's method with that of litigation, though arbitration is a distinct process intended to resolve issues efficiently, not replicate courtroom procedures.