Question

What is the primary function of an Arbitrator?

• A. To act as a legal Advocate for the plaintiff.
• B. To serve as a neutral third party who renders a binding decision.
• C. To provide non-binding suggestions to the court.
• D. To represent the state in criminal proceedings.

Hint:

Arbitration is often chosen for its privacy and technical specificity; parties can select arbitrators who are subject-matter experts, unlike a generalist judge in a civil court.

Answer 1

The Correct Option is B

Concept: Arbitration is a form of Alternative Dispute Resolution (ADR) where parties choose to resolve their conflicts outside of the traditional court system. The individual appointed to preside over this process is known as an arbitrator.

Step 1: Defining the role of the arbitrator.
Unlike a mediator, whose role is to facilitate a voluntary agreement, an arbitrator is vested with the quasi-judicial power to hear the arguments from both sides, examine the evidence presented, and deliver a decision that is legally binding on all parties involved in the agreement.

Step 2: Neutrality and impartiality.
A fundamental requirement for any arbitrator is neutrality. They must not have any prior bias or interest in the outcome of the dispute, ensuring that the process remains fair and that the final decision is based strictly on the merits of the case and the governing law or contract.

Step 3: The binding nature of the decision.
Once the arbitrator issues an 'award' (the final decision), it has the same legal force as a court judgment. This process is favored in international and commercial law because it offers a final, enforceable resolution without the long delays often associated with public litigation. equation Primary function of Arbitrator = Neutral third party rendering a binding decision equation center To serve as a neutral third party who renders a binding decision. center