Although litigation is an efficient method of resolving disputes, it is not the best forum to resolve business disputes since it is time consuming, the most expensive, and wastes crucial business energy that may be used somewhere else(Mujawdiya, 2002). In most cases, it ruins the relationship between the disputing parties(Mujawdiya, 2002). There are other ways of resolving business disputes commonly referred to as Alternative Dispute Resolution (ADR). They usually include negotiation, mediation, expert determination, adjudication, early neutral evaluation, arbitration among others(Mujawdiya, 2002). In my opinion, arbitration is the best forum for resolving business disputes because the process is more adaptable and more efficient, having the capability of accommodating the specific needs of disputants and the whole business society.
Arbitration is similar to a formal trial and will be binding upon the parties. Therefore, courts can enforce arbitration findings without much ado(Mujawdiya, 2002). A key advantage of arbitration forum is that they are private forums, making it difficult for the public and competitors in accessing the information and testimony that the disputing parties may not be wishing to make public. Another advantage is that they are less expensive and faster than court trials. They also avoid emotionalism frequently observable in a trial by jury. Hence, arbitration is considered to be the ideal forum for resolving commercial disputes.
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A key disadvantage of arbitration is that if the arbitrator makes a law error, the court cannot overturn the arbitrator’s decision(Mujawdiya, 2002). This so because arbitrators are usually given more power than average judge to use any and all equitable common sense or procedures and fairness to decide how to hear the case. Some ethical issues that may arise from arbitration is that some attorneys may feel free to engage in unethical conduct because the arbitration process is free, private or because the attorneys are not likely to see same arbitrators more than once. Arbitrators may also decide that enforcement of ethical standards is not part of their job since they are only charged with deciding only on particular issues surrendered to them for resolution. Hence, the temptation of ignoring misconduct is very high(Bennett, 2008).