Question

In arbitration, what do leaders of the labor union and the representatives of company management agree to?

A. to bring a third party into their negotiations who has the ability to make binding decisions
B. to negotiate with one another and to understand that management reserves the right to make binding decisions for both parties
C. to bring a third party into their negotiations who will help them negotiate, but who does not have the power to make binding decisions
D. to negotiate with one another and to understand that the labor union reserves the right to make binding decisions for both parties

Answer 1

Step-by-step explanation:

A. to bring a third party into their negotiations who has the ability to make binding decisions

Answer 2

A. to bring a third party into their negotiations who has the ability to make binding decisions.

In arbitration, the parties involve usually appoint a third party who is impartial and who listen to both parties’ positions and arguments. Parties opt for a private dispute resolution procedure instead of going to court to settle their dispute.

In some cases, witnesses are called to give oral testimony and documentary evidence are collected where applicable with a view to resolving the dispute.

It is to be noted that parties to arbitration generally agree in advance that the resulting award will be final and binding upon them in an arbitration.