What type of disputes does arbitration typically handle?

What type of disputes does arbitration typically handle?

• A. Public disputes
• B. Personal disputes only
• C. Private disputes between parties
• D. Criminal disputes involving the state

Answer: (C)

Arbitration is primarily designed to handle private disputes between parties, making it an effective alternative to traditional court proceedings. This process is generally preferred for its confidentiality, efficiency, and the ability for parties to select an arbitrator with specific expertise relevant to the matter at hand.

In arbitration, the involved parties agree to resolve their disputes outside of the public court system, which is particularly beneficial for commercial relationships, contractual disagreements, and other civil disputes that may require specialized knowledge. This focus on private disputes allows parties to maintain discretion and often leads to faster resolution compared to the public judicial process.

The nature of arbitration does not typically involve public disputes, personal disputes only, or criminal disputes involving the state. Public disputes are usually subject to the courts and their proceedings are accessible to the public. Personal disputes may include a wider range of issues that aren't necessarily handled through arbitration, and criminal matters involving the state fall strictly under criminal law and are managed through the criminal justice system, rather than arbitration processes.