ICAEW BL · Chapter 1 · Question 7 of 8
Two engineering companies are in dispute over a technical specification. They want a binding decision from an industry expert, reached in private and enforceable in much the same way as a court judgment. Which method of dispute resolution best meets their aims?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Arbitration
Explanation
In arbitration the parties appoint an independent arbitrator, often a technical expert, whose award is binding and can be enforced through the courts. The hearing is private. A mediator only helps the parties reach their own settlement and imposes no decision. Negotiation produces no third-party decision, and High Court litigation is public and decided by a judge rather than a chosen expert.
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