Question

A consumer products manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the failure of the initial attempts to solve the dispute in a friendly informal manner, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. What dispute resolution method is being used by these companies?

Answer 1

Answer:

The answer is: Arbitration

Explanation:

An arbitration agreement is a contract or a clause in a larger contract, where two parties agree to settle disputes outside of court.

This is a legal technique used for the resolution of disputes where the parties refer to an arbitrator that must decide the dispute. Both parties agree to accept the decision of the arbitrator.