Advantages of Arbitration for Colossal Corporation Discussion Response
Respond to discussion post:Zayne DavenportArbitration is a form of alternative dispute resolution that is often used as an alternative to litigation in court. It is a process where two private parties agree to submit their dispute to one or more impartial individuals, known as arbitrators, for a final and binding resolution. The decision reached by the arbitrator is known as an “award (Gordon, 2016). The process of arbitration is like a trial in many ways, but it is often quicker, less formal, and less expensive. During the arbitration, both parties present evidence and make arguments to the arbitrator in support of their position. The arbitrator then decides based on the evidence and arguments presented, and this decision is binding on both parties (Gordon, 2016).While arbitration has no set requirements, there are several common organizations used by many throughout the world who have a common set of rules of engagement. For international disputes, a popular arbitration option is the ICC, or the International Chamber of Commerce and for domestic disputes, the American Arbitration Association, or AAA (Gordon, 2016). Primarily, during the construction of the contract between two parties, the specifics of arbitration are outlined. These specifics can include specific rules, location, language, and the number of arbitrators (Gordon, 2016). The advantages of arbitration very well could be a great idea for legal proceedings for Colossal management.One of the key benefits of arbitration is that it allows parties to have more control over the outcome of their dispute. This is because the arbitrator is chosen by the parties, and the rules of arbitration can be tailored to the specific needs of the dispute. Therefore, Colossal could chose an arbitrator that has a background in a specific law or particular field that benefit Colossal if the corporation has to debate a case. This is also beneficial as the arbitrator chosen could easily be geographically separated from either part, such as the ICC in Paris, France. In doing so, the unbiased arbitrator would not have ties or sway in favor of a party in another country, unlike a court system based in the partys home country (WIPO, n.d.).Another benefit for Colossal is that arbitration is often faster and less expensive than litigating in court. This is because the process of arbitration is less formal, and the parties do not have to go through the same extensive discovery process that is often required in a court case. Additionally, arbitrators can make decisions more quickly than a court, as they do not have the same backlog of cases that a court often has (Pimentel, 2022).Thirdly, the benefit of enforceability is greatly beneficial to Colossal, especially when dealing in international contracts. According to Gordon, most of the worlds trading nations have agreed to have their courts enforce arbitral awards issued in foreign nations (2016). This means the awards given by the arbitrator are almost absolute, and enforceable in any country that has signed the Convention on the Enforcement of Arbitral Awards, as only under rare circumstances are rewards overruled in a court of law.This absolute does however pose a disadvantage. Since the decision of the arbitrator is final and binding, and there is limited opportunity for appeal. This means that if the parties are dissatisfied with the award, they may have no recourse to have the decision reviewed or overturned. However, this slight disadvantage is drastically outweighed by the advantages of efficiency, enforceability, and controllability arbitration offers.In conclusion, the advantages of efficiency, enforceability, and controllability arbitration offers as well as having unbiased judgment with world-wide parties makes arbitration a grand idea for Colossal Corporation. Going forward, the VP should enforce all new contracts, domestic and international, have the particulars of arbitration outlined within them.
