Which of the following is true of a binding arbitration clause?
A) The parties that have drawn up the contract can choose the arbitrator.
B) The parties that have agreed on this clause can resolve their disputes in a federal court.
C) It cannot be included in a collective bargaining agreement.
D) It usually indicates that both parties agree to be bound by the arbitrator's award.

Question

Quizplus · Accepted Answer

A binding arbitration clause typically indicates that both parties agree to be bound by the arbitrator's award, meaning they accept the decision made by the arbitrator as final and enforceable. The parties usually cannot resolve their disputes in a federal court, and in some cases, such as collective bargaining agreements, binding arbitration clauses can be included. The parties may or may not be able to choose the arbitrator depending on the agreement.

Which of the Following Is True of a Binding Arbitration