Question

Arbitration clauses require agreement wherein the concerned parties agree:

A. on who is right and who is wrong.
B. on the validity of the litigation issues.
C. to abide by the awards resulting from the arbitration.
D. to not hire a legal counsel to represent each of the parties involved.
E. to not name the arbitrators.

Answer 1

An arbitration clause requires parties to agree to abide by the arbitration awards and not hire legal representation.

Step-by-step explanation:

An arbitration clause is a provision in a contract that requires the parties involved to resolve disputes through arbitration rather than litigation. When agreeing to an arbitration clause, the concerned parties agree to certain terms:

1. To abide by the awards resulting from the arbitration.
2. To not hire a legal counsel to represent each of the parties involved (This option is not correct).
3. To not name the arbitrators.

Arbitration is a dispute resolution process where a neutral third party, known as an arbitrator, is chosen to listen to both parties and make a decision. It is often seen as a faster and less formal alternative to going to court.