Originally from Dispute Resolution Journal

A key issue for business managers and executives is to decide on the process for dealing with disputes of various kinds, particularly those arising out of business transactions, such as those with suppliers, customers, partners, licensees, and others. There are many factors to consider in deciding whether the court or the arbitration hearing is the best place to resolve these disputes. This article discusses the relevant factors and suggests how they could affect a businessperson’s decision.

Lawyers who advise business entities commonly confront the question of whether to resolve disputes by arbitration. This usually comes up when the parties are negotiating a transaction agreement. Often the decision is made, not as a result of any systematic consideration of the merits of arbitration versus a judicial forum, but rather as a result of anecdotal information about good or bad experiences with each process. This article aims to provide the basis for a more systematic consideration of the arbitral versus judicial alternatives.