BUSINESS-TO-BUSINESS ARBITRATION IN THE UNITED STATES: PERCEPTION OF CORPORATE COUNSEL By Mridula Sharma

Business-to-business or proponents of commercial arbitration, emphasis on its benefits for resolving disputes with less incurred costs and quick outcome as compared to the traditional litigation procedure. Arbitration is therefore considered as a valuable alternative to litigating a dispute in court. Arbitration is binding in nature as it involves voluntarily binding of disputes before either one or three arbitrators as appointed by the parties. The Arbitration Award which is the outcome of the arbitration process helps in determining the parties' responsibilities and legal rights. Hence making arbitration more like litigation than mediation. Under Federal and New Jersey law it is the court which decides the arbitration award just like the judgments except in certain cases under different circumstances associated with the process of arbitration. The losing party is required to pay the arbitration award and pay any amount needed for completion of award until and unless there’s some serious procedural error on behalf of the arbitrator.

The cost involved in resolving business-to-business disputes which involves paid lawyers, vendors and experts followed by any judgment owned and opportunity costs, makes arbitration less expensive, quick and a good alternative to litigation if conducted correctly. With these basic features, the potential pros to arbitration over litigation consists of flexibility, speed, finality and confidentiality. When the dispute scope is International, arbitration adds on neutrality and enforceability as its potential advantages. Business should be more inclined towards these features against the main drawback involved in arbitration- lacking the ability in appealing the correct perceived errors by the arbitrators.

Speed and flexibility

Parties to an arbitration can—and should—take an interest in structuring the procedure. In court, the parties are required to adhere to procedural principles that apply to each case. Those principles probably won't be directly for a wide range of questions and can make the potential for wasteful aspects like pointless postponement. Albeit, most arbitration statements fuses a lot of rules but those principles are rules that can be differentiated by the party and in this manner are adaptable. Parties should remember that a case requiring complex methods like broad verifiable disclosure probably won't be directly for arbitration.

Finality

Arbitration awards are lawfully authoritative and are not liable to request. The triumphant party doesn't have to anticipate advances before the case is really finished. Despite the fact that the absence of offers is an advantage in that as it speeds up the procedure, it additionally implies that there is no higher court to address arbitrators’ mistake of fact-finding or law. A case that includes troublesome lawful issues, which may profit by investigative survey, probably won't be directly for arbitration.

Confidentiality

With some restricted securities for exchange privileged insights and other touchy data, archives in the suit are freely documented and court appearances are available to people in general. Parties to an arbitration can concur that the procedure and results are classified. The issue and the arbitration award, be that as it may, will regularly become open on the off chance that one side goes to court to uphold or challenge the arbitration award.

Enforceability & Neutrality (for International Disputes)

Arbitration has extra advantages when the debate has a worldwide scope. Arrangements to which the United States is a party-what is known as the New York Convention—settle on worldwide arbitration agreements and awards in business contracts enforceable all through the world. The United States isn't as of now involved with any bargain that makes court decisions in business cases comparably enforceable. It is frequently simpler to uphold an arbitral award against an outside party than a court judgment. Arbitration additionally bears parties from various nations a "neutral" party to determine disputes.

Conclusion

In aggregate, business-to-business arbitration can give the advantages of speed and flexibility, confidentiality and enforceability and neutrality in case of international disputes. In any case, the business should try to participate in a procedure intended to get all the more rapidly to the core of the issues, not repeat court procedures like the oppressive and broad revelation that will build costs and hinder the case. To do so would just create private suit i.e litigation and considerably diminish the advantages of arbitration without the option to bid.