Advantages

Parties often seek to resolve disputes through arbitration because of several perceived potential advantages over judicial proceedings: Arbitration allows the parties to choose their own tribunal. Arbitration is often faster than litigation in court. Arbitral proceedings and an arbitral award are generally non-public and can be made confidential. In most legal systems there are very limited avenues for appeal of an arbitral award, which is sometimes an advantage because it limits the duration of the dispute and any associated liability.

Characteristics of Arbitration:

Voluntary: Parties must expressly agree to arbitrate in writing or fall within the legislation that mandates arbitration in each situation.

Controlled: The parties and their counsel can control procedural aspects of the process

Private: Arbitration is usually conducted in private.

Informal: there are no prescribed procedural or evidentiary rules governing arbitration.

Binding/Non-Binding: All federal arbitration under the Commercial Arbitration Act is binding. Judicial review of an arbitral award is available only on limited grounds such as incapacity of a party; invalidity of an arbitration agreement; or that the award is in violation of law or public policy.

Confidential: Arbitration is generally confidential if the parties so elect

Flexible: The parties have discretion in choosing an arbitrator and the procedure to be followed in resolving the dispute.