Arbitration vs. Mediation

To start, we thought it would appropriate to remind everybody about the basics of arbitration, its purpose and general characteristics. At its core, arbitration is the private, judicial determination of a dispute, by an independent third party. An arbitration hearing may involve the use of an individual arbitrator or a tribunal. A tribunal may consist of any number of arbitrators though some legal systems insist on an odd number for obvious reasons of wishing to avoid a tie. One and three are the most common numbers of arbitrators. The disputing parties hand over their power to decide the dispute to the arbitrator(s). Arbitration is an alternative to court action (litigation), and generally, just as final and binding (unlike mediation, negotiation and conciliation which are non-binding).
As we already know, the object of arbitration is to obtain a fair resolution of disputes by an impartial third party without unnecessary expense or delay. Parties should be free to agree how their disputes are resolved; subject only to such safeguards as are necessary in the public interest, free from the interference of judicial courts.
Arbitrators, or Tribunal members, are commonly appointed by one of three means:
1. Directly by the disputing parties (by mutual agreement, or by each party appointing one arbitrator)
2. By existing tribunal members (For example, each side appoints one arbitrator and then the arbitrators appoint a third)
3. By an external party (For example, the court or an individual or institution nominated by the parties)
Classifications Of Arbitration.
1. Commercial Arbitration is the most common of disputes. Just as it sounds, it is a dispute between two commercial enterprises.
2. Consumer Arbitration surrounds disputes between a consumer and a supplier of goods or services.
3. Labor Arbitration involves the settlement of employment related disputes.
Such as classification is important as we will later see that, depending on the area of law in which