Answer: arbitration is a costly process
Explanation: Arbitration, a form of substitute dispute settlement, is a route out of a trial to settle disputes. Any or more people will decide the issue, which allows the arbitration grant. The arbitration award on both sides is legally enforceable and actionable in court.
Arbitration is long term process and requires heavy time and money from both sides of the party. Due to such ongoing process it affects the business and both the parties suffers heavy losses in their side.
Therefore, most of the time parties tries to avoid arbitration in a conflict as much as they can.
