Thevideo entitled “What is Arbitration?” explains what arbitration is. This type of proceeding takes place privately rather than in a courtroom.
The animated characters, Patty and David, are used to demonstrate what happens when at least one person breaks a contract. One option they might have is to have a third person decide who is right when it comes to keeping and breaking a legal agreement.
The third person, identified as the fictional character Alan, would play the “arbitrator” role.
This person, who Patty and David would have to select, puts the arbitrator in an agreement with them. This “arbitration agreement” helps two people resolve their disputes.
In the arbitrator’s office, both parties (ex: Patty and David) would present their evidence. This helps the professional in charge of the arbitration decide who is right. After determining an outcome, one person may, for example, have to pay money to the other person.
The “What is Arbitration?” video also covers what happens when the person who “lost” refuses to follow through. In the case of Patty and David, David may refuse to pay $5,000. If David does not pay, Patty will then have to take David to court to enforce the arbitration award (money).
Union arbitration decisions often require a private arbitrator to settle disputes. However, it may also pertain to any financial disagreement between two people after divorce, bereavement or retirement.
