By Jill Pilgrim, Esq.
If you ask the random person what the term “arbitration” means, some individuals will be familiar with the term, others will admit they don’t know, and a smaller number will know exactly what you are talking about. The latter group will consist of many lawyers and individuals who have participated in arbitration or know someone who has. Even within the group of attorneys, many will have “familiarity” but won’t know the details of how arbitration works.
You, yes “You,” need to become familiar with arbitration because chances are that you have agreed to “arbitrate” several times in the past six months. All those e-commerce websites you log onto, without reading the “Terms of Use,” are requiring you to use arbitration to resolve disputes with them about the business, consumer, or commercial transaction you are about to engage in.
Arbitration is a procedure for resolving disputes and disagreements, without going to court with a judge or jury. It is a “private” mechanism of dispute resolution, because the process is not playing itself out in a public, government-run judicial or administrative institution (i.e. the local, state, administrative, and federal courts).
As an alternative to the public court system – alternative dispute resolution — requires the individuals or businesses who want to utilize arbitration to agree do so in writing.
The next articles in this series will provide more detail on how arbitration works, and the benefits and disadvantages of using arbitration.