Most businesses try to contain legal costs, particularly the cost of litigation. Exxon is no exception. One of the methods that has worked for Exxon is arbitration. The use of arbitration as an alternative to litigation antedates the recent interest in mediation, mini-trials, and other forms of alternative dispute resolution, but Exxon's satisfaction with arbitration has kept it one of the company's preferred forms of dispute resolution.
EXXON'S USE OF ARBITRATION
Exxon uses arbitration clauses in a variety of contracts, both domestic and international. The transactions covered range from highly sophisticated ones involving many millions of dollars to more mundane matters involving modest sums. At the sophisticated end of the spectrum are matters such as the Prudhoe Bay Operating Agreement, to which Exxon and several other major energy companies are parties. At the mundane end are agreements to arbitrate disputes with customers concerning car repairs at company-owned car-care centers.