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AromaticTroubledDormouse
20:55
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Simple English definitions for legal terms
adjudicative-claims arbitration
Read a random definition: corporate speech
A quick definition of adjudicative-claims arbitration:
Adjudicative-claims arbitration is a way to solve a disagreement between two parties by having a neutral third party make a decision that both parties agree to follow. This type of arbitration is used for resolving legal disputes, like a lawsuit, instead of issues related to labor or international trade. It is different from mediation, where the third party helps the parties come to a mutual agreement but does not make a final decision. Compulsory arbitration is when the law requires the parties to use arbitration, while voluntary arbitration is when both parties agree to use it.
A more thorough explanation:
Adjudicative-claims arbitration is a method of resolving disputes that are typically handled by courts, such as tort claims. It involves one or more neutral third parties who are agreed upon by the disputing parties, and their decision is binding.
- A person is injured in a car accident and wants to sue the other driver for damages. Instead of going to court, they agree to adjudicative-claims arbitration with a neutral third party who will make a binding decision on the matter.
- A company is being sued for breach of contract by a former employee. The company and the employee agree to adjudicative-claims arbitration to resolve the dispute instead of going to court.
These examples illustrate how adjudicative-claims arbitration can be used to resolve disputes that would typically be handled by courts. By agreeing to arbitration, the parties can avoid the time and expense of going to court and have a neutral third party make a binding decision on the matter.