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ACCA Applied Skills · Corporate and Business Law (Global) · Alternative dispute resolution mechanisms

Which of the following is a recognised advantage of arbitration compared with litigation in an international commercial dispute?

The parties may choose an arbitrator with specialist expertise in the subject matter. Arbitration is consensual and private, with limited appeal rights and no power over non-parties, so expert selection is a genuine advantage over court litigation.

  1. AThe award is published in open court, giving the parties wide publicity
  2. BThe parties may choose an arbitrator with specialist expertise in the subject matterCorrect
  3. CThe award can be appealed on the merits as of right to a higher court
  4. DThe arbitrator has compulsory powers over third parties who are not party to the agreement

Explanation

Parties can select arbitrators with relevant technical or commercial expertise. Arbitration is normally private, appeal rights are very limited, and arbitrators lack power over non-parties because the process is consensual.

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