Question

A Canadian company placed an order with a Korean company for electronic equipment. The Korean company was unable to deliver the goods on time due to a technical failure and the Canadian company incurred losses. Initial attempts to informally settle the dispute failed. Consequently, each party chose a person to defend their case and to make a judgment that both parties agreed to honor. The method of dispute resolution being used is ________________.

Answer 1

Answer:

Arbitration

Explanation:

Arbitration is a dispute resolution mechanism where two or more conflicting parties seek the services of an independent third party to resolve the dispute.  Arbitration can be described as a private judicial process whereby the arbitrator acts at the judge. The arbitration process may be determined by a single individual or a tribunal consisting of several arbitrators.

In arbitration, the disputing parties agree on how the conflict will be resolved. Each party is given time to argue their case and present their evidence. Arbitrators are expected to be fair and impartial. They should be knowledgeable about issues of law or experts in the field of the conflicting parties. Arbitration is faster and less expensive compared to the court process. The decision of the arbitrator is usually legally binding.