Which of the Following Is True of Arbitration

question 50

Multiple Choice

Which of the following is true of arbitration?

• A)In arbitration a neutral third party is introduced into a resolution process,with the arbitrator as a facilitator,not a decision maker.
• B)In arbitration a neutral third party is given the power to determine a binding resolution of a dispute.
• C)An arbitrator is only allowed to aid the involved parties by opening up communication between them.
• D)An arbitrator's proposed solution is in the nature of a compromise,not a determination of right and wrong.

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Definitions:

Merchant

A person or company engaged in the trade of goods, specifically in the context of consumer protection laws, someone dealing in goods of the kind involved in the transaction.

Reasonable Effort

The degree of diligence and attention expected under certain circumstances, typically what a reasonable person would do.

Nonconforming Goods

Merchandise that does not meet the specifications or requirements as outlined in a contract.

Not a Merchant

Refers to an individual or entity that does not engage in buying, selling, or trading of goods or services in a particular market, and thus may not be held to certain legal standards applicable to merchants.