Which statement about arbitration is true?

Which statement about arbitration is true?

• A. False
• B. The submission agreement is a binding contract.
• C. The arbitration panel must be a sitting judge.
• D. Arbitration requires a formal discovery process.

Answer: (B)

Arbitration hinges on a submission agreement that creates a binding contract between the parties to resolve disputes outside the court system. This document shows their consent to arbitrate and to be bound by the arbitrator’s decision, and it often sets the scope of the disputes, how the arbitrator or panel will be chosen, the applicable rules, and other procedural details. Because it is a contract, it carries legal force just like any other agreement, and courts will enforce it or compel arbitration when needed under applicable law. That’s why the statement describing the submission agreement as a binding contract is true. The other statements aren’t generally accurate: arbitrators aren’t required to be sitting judges—they can be experienced lawyers or professionals; the number of arbitrators can be one or three, and it doesn’t have to be a judge. Also, arbitration does not inherently require a formal discovery process; discovery, if any, is typically more limited and driven by the agreement or rules, not a mandated court-esque discovery regime.

Arbitration hinges on a submission agreement that creates a binding contract between the parties to resolve disputes outside the court system. This document shows their consent to arbitrate and to be bound by the arbitrator’s decision, and it often sets the scope of the disputes, how the arbitrator or panel will be chosen, the applicable rules, and other procedural details. Because it is a contract, it carries legal force just like any other agreement, and courts will enforce it or compel arbitration when needed under applicable law.

That’s why the statement describing the submission agreement as a binding contract is true. The other statements aren’t generally accurate: arbitrators aren’t required to be sitting judges—they can be experienced lawyers or professionals; the number of arbitrators can be one or three, and it doesn’t have to be a judge. Also, arbitration does not inherently require a formal discovery process; discovery, if any, is typically more limited and driven by the agreement or rules, not a mandated court-esque discovery regime.