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Pros And Cons Of Using Arbitration Method For Dispute Resolution

author-img By Arnab Dey 5 Mins Read 11 September 2023


Sometimes due to dishonesty or scam business contracts, partnerships and investment agreements disputes can arise among partners.

You can resolve the disputes after you are going through the process of court trials. Simultaneously, you can check and implement the method of arbitration in the process. 

You can use the arbitration method if both parties agree on it. Furthermore, you can use the Arbitration method in low profile cases. Such as DOT can use the method of arbitration to resolve issues with transportation companies. In case of FMCSA regulations violations which are known as arbitration program name FMSCA

Arbitration is a kind of private trial in which disputed parties pay a third party to resolve their dispute. You can call the third party, the arbitrator, while the position is neutral so that both parties can trust him. 

In arbitration trials, most of the times dominants manage the way things work. You can submit the written proof to the arbitrator from both parties. To give oral arguments disputed parties can hire attorneys to represent them. There are many benefits as well as disadvantages of using an arbitration method for dispute resolution.

Pros of using arbitration method

Pros of using arbitration method

One of the biggest advantages of arbitration is that it is a time-efficient and flexible method. As court trials can take several years to resolve issues due to the burden of work. The trial dates can arrive after a wait of months.

But on the other hand, arbitration is possible whenever the parties are free and willing to go for trial. You can resolve the dispute in a matter of days or even months. As it depends on the accuracy of proofs and disputed parties cooperate with the arbitrator.

Arbitration is less complicated than the court system as courts need every document. The proof to move the motion and you can prepare a long list of paper filing. For the process to even start, you have to follow through. 

On the other hand, the arbitration method makes it easier to submit evidence. Unlike court, parties don’t have to wait for the submission of required documents till the next trial. The documents and proofs can be submitted immediately or through the mail. Due to this a lot of time and energy can be saved.

The arbitration process is very beneficial in solving matters of business as arbitration is a method of private resolution.

That’s why information and the specifications of trials are kept confidential which is very beneficial for disputed parties. It is due  if clients are well-known public figures or famous businesses it can help protect their reputation.

Moreover, one of the biggest advantages of arbitration is that it is less expensive. As disputes are resolved more quickly than court due to which attorney fees are reduced.

Cons of arbitration method

Cons of arbitration method

Even though arbitration is quite favorable, is time and cost-efficient, and provides privacy. It is not that reliable and wholesome method of dispute resolution.

As impartiality of arbitrator can be challenged if the arbitration company is of poor reputation or shares. The business interests with a disputed party it can affect his judgment. It is due to which fairness of trial can be questioned.

As arbitration agreement is binding in nature and if one party thinks that decision is not favorable. It is due to the fact that party cannot go to appeal unless other parties think so too. This agreement can lose its value as there is very little opportunity and flexibility in the arbitration agreement.

Moreover, there is no set rule and regulations for documents of proof. While in the court system where certain documents can be used as proof only to make the trial more transparent and fault free. Due to this arbitrator decision can be different from the decision of the judge of court. It is due to the fact that they are more rigid and accurate. 


Effective dispute resolution is very essential to create discipline in society and to run businesses successfully. The arbitration method for dispute resolution is very effective but to reap the true benefits. It’s important to work on the problem with mutual agreement and with an open mind. That both parties are motivated to resolve the issue with the help of peaceful means. There is a need to make the process of arbitration more transparent and more workable.

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Arnab Dey

Arnab is a passionate blogger. He is very much passionate about social media. His special interests are in current affairs, business, lifestyle, health, food, fitness, etc. If you want to read refulgent blogs so please follow Online News Buzz.

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