During which type of arbitration can either party choose to not be bound by the arbitrator's decision?

During which type of arbitration can either party choose to not be bound by the arbitrator's decision?

• A. Binding arbitration
• B. Non-binding arbitration
• C. Public arbitration
• D. Private arbitration

Answer: (B)

Non-binding arbitration is a process where the outcome is advisory rather than mandatory. In this type of arbitration, each party has the option to reject the arbitrator's decision and pursue further legal action or alternative dispute resolution methods. It allows for a more flexible approach, as parties can gauge the strengths and weaknesses of their positions based on the arbitrator's findings without committing to the decision made. This characteristic distinguishes non-binding arbitration from binding arbitration, where the decision is enforceable and both parties are required to comply with the arbitrator's ruling. Thus, non-binding arbitration provides a safety net, enabling parties to assess their next steps after receiving the advisory decision.

Non-binding arbitration is a process where the outcome is advisory rather than mandatory. In this type of arbitration, each party has the option to reject the arbitrator's decision and pursue further legal action or alternative dispute resolution methods. It allows for a more flexible approach, as parties can gauge the strengths and weaknesses of their positions based on the arbitrator's findings without committing to the decision made. This characteristic distinguishes non-binding arbitration from binding arbitration, where the decision is enforceable and both parties are required to comply with the arbitrator's ruling. Thus, non-binding arbitration provides a safety net, enabling parties to assess their next steps after receiving the advisory decision.