Skip to content

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

Which of the following is a typical advantage of arbitration over court litigation for businesses?

A key advantage of arbitration is that the parties can choose an arbitrator with specialist expertise. It is not guaranteed to be cheaper, and awards can still be challenged on limited grounds such as jurisdictional or procedural defects.

  1. AThe arbitrator's award can never be challenged on any ground
  2. BThe parties can choose an arbitrator with specialist expertiseCorrect
  3. CArbitration always costs less than litigation

Explanation

Parties can select an arbitrator with expertise in their industry, unlike a court judge who is allocated. Awards can be challenged on limited grounds such as procedural unfairness or lack of jurisdiction. Arbitration is not always cheaper, since arbitrators' fees and venue costs can be high.

Did you get it right without looking?

One question tells you little. A timed set on Alternative dispute resolution mechanisms shows your real accuracy, how long you take and where you lose marks.

Practise Alternative dispute resolution mechanismsFree diagnostic mock

More Alternative dispute resolution mechanisms questions