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

To resolve disputes without going through the hectic process of court trials, a method of arbitration can be used to resolve such issues.

The arbitration method can be only used if both parties agree on it. . Arbitration method is used in low profile cases like 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, the third party is called arbitrator and he should be neutral so that both parties can trust him.

In arbitration trials, most of the times dominants and written proofs are submitted to the arbitrator from both parties and 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, 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 and the dispute can be resolved in months or even in days 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 and proof to move the motion and a long list of paper filing is needed for the process to even start.

On the other hand, the arbitration method makes it easier to submit evidence as unlike court, parties don’t have to wait for the submission of required documents till the next trial, and 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 because 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 business interests with a disputed party it can affect his judgment 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 for it 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 unlike the court system where certain documents can be used as proof only to make the trial more transparent and fault free and due to this arbitrator decision can be different from the decision of the judge of court because their means 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 of it 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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