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Commercial Arbitration Guide for Business People

NCJ Number
92923
Date Published
1983
Length
15 pages
Annotation
The American Arbitration Association (AAA) administers orderly arbitration proceedings governed by rules of procedure and standards of conduct prescribed by law.
Abstract
This handbook describes the rules and procedures for using the AAA's Commercial Arbitration Tribunal. Controversies between business people seldom involve great legal issues. Instead, they concern evaluation of facts and interpretation of terms best settled in a private, informal manner. Commercial arbitration provides the opportunity for this type of settlement. The first step in arbitration is to agree to arbitrate, either through an arbitration clause in the business contract or through submission to arbitration. The second step is to select an arbitrator. The AAA has a simple, effective system for such selection. The third step, preparation for the hearing, forbids direct communication between the parties and the arbitrator. The parties and their attorneys must prepare carefully. The arbitrator will make the award based on the facts presented at the hearing. During the fourth step, presentation of the case, the complaining party normally proceeds first. Arbitration lacks the formality and rules of evidence found in court trials. The arbitrator hears all evidence and decides what is relevant. The disputing parties must strive to establish the correctness of their positions. The arbitrator makes an award to dispose of the controversy finally and conclusively. The guide includes a checklist for arbitration, sample arbitration agreements, a guide to procedures, and the AAA administrative fee schedule.