ACCA Applied Skills · Corporate and Business Law (Global) · Alternative dispute resolution mechanisms
Which of the following is an advantage of arbitration over litigation for parties to an international commercial contract?
The parties can choose the arbitrator and keep the proceedings private. These are recognised advantages of arbitration. It is not always cheaper, and it is generally confidential rather than public, unlike most court litigation.
- AProceedings are always public, which deters wrongdoing
- BThe parties can choose the arbitrator and keep the proceedings privateCorrect
- CArbitration is always cheaper than court proceedings
Explanation
Arbitration allows parties to select arbitrators with relevant expertise and usually keeps proceedings confidential. It is not always public, and it is not always cheaper, as arbitrators' fees and venue costs can be high.
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