In arbitration, what is a typical characteristic of the decision?

In arbitration, what is a typical characteristic of the decision?

• A. Non-binding and advisory
• B. Optional for the parties to accept
• C. Subject to reversible review by a court
• D. Binding and enforceable

Answer: (D)

Arbitral awards are binding and enforceable. Once the arbitrator issues an award, it creates a final obligation on both parties, and that award can be enforced in courts just like a judgment. This enforceability is a defining feature of arbitration, making the decision authoritative rather than merely advisory. Courts typically review awards only on narrow grounds—such as due process issues, arbitrator misconduct, or lack of jurisdiction—not to re-litigate the merits. The idea that the decision is optional to accept or that it is non-binding doesn’t fit with how arbitration works, where the parties have agreed to arbitrate and are bound by the outcome.

Arbitral awards are binding and enforceable. Once the arbitrator issues an award, it creates a final obligation on both parties, and that award can be enforced in courts just like a judgment. This enforceability is a defining feature of arbitration, making the decision authoritative rather than merely advisory. Courts typically review awards only on narrow grounds—such as due process issues, arbitrator misconduct, or lack of jurisdiction—not to re-litigate the merits. The idea that the decision is optional to accept or that it is non-binding doesn’t fit with how arbitration works, where the parties have agreed to arbitrate and are bound by the outcome.