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What is the Arbitration Process? How Does Arbitration Work?


Question: What is the Arbitration Process? How Does Arbitration Work?
Arbitration )is the process of bringing a business dispute before a disinterested third party for resolution. The third party, an arbitrator, hears the evidence brought by both sides and makes a decision. Sometimes that decision is binding on the parties. According to the American Arbitration Association (AAA), here is the general process for arbitration.

Filing and Initiation
An arbitration case begins when one party submits a Demand for Arbitration to the AAA. The other party (the respondent) is notified by the AAA and a deadline is set for response.

Arbitrator Selection
The AAA works with the parties to identify and select an arbitration based on the criteria determined by the parties.

Preliminary Hearing
The arbitrator conducts a preliminary hearing with the parties, to discuss the issues in the case and procedural matters, such as witnesses, sharing information, and other matters.


Information Exchange and Preparation
The parties then prepare for presentations and exchange information.

At the hearing, both parties may present testimony and evidence to the arbitrator. Unless the case is very complex, this is usually the only hearing before the arbitrator.

Post-Hearing Submissions
After the hearing, both parties may present additional documentation, as allowed by the arbitrator.

The Award
Finally, the arbitrator closes the record on the case and issues a decision, including an award, if applicable.

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