EstatePass
Contract AdminContractsmedium40% of exam part

In arbitration proceedings for a construction dispute, the arbitrator's decision is generally:

Correct Answer

B) Binding and enforceable like a court judgment

Arbitration typically results in a binding decision that is enforceable like a court judgment. This is a key difference from mediation, where the mediator's role is to facilitate agreement rather than impose a decision.

Answer Options
A
A recommendation that either party can reject
B
Binding and enforceable like a court judgment
C
Subject to appeal to a higher arbitration panel
D
Only advisory unless both parties agree to be bound

Why This Is the Correct Answer

Arbitration produces a binding decision called an 'award' that has the same legal force as a court judgment. Once an arbitrator renders a decision, both parties are legally obligated to comply with it. The arbitrator acts as a private judge with the authority to make final, enforceable decisions. This binding nature is what makes arbitration an effective alternative dispute resolution method for construction disputes.

Why the Other Options Are Wrong

Option A: A recommendation that either party can reject

This describes mediation, not arbitration. In arbitration, the arbitrator makes a binding decision that cannot be simply rejected by either party.

Option C: Subject to appeal to a higher arbitration panel

Arbitration decisions are generally final with very limited grounds for appeal. Unlike court systems, there is no higher arbitration panel to appeal to - finality is a key feature of arbitration.

Option D: Only advisory unless both parties agree to be bound

This also describes mediation or non-binding arbitration. Standard arbitration is binding by default when parties agree to arbitrate - they don't need separate agreement to be bound by the decision.

Memory Technique

Think 'ARBitration = ARBiter = judge-like authority = BINDING decision' vs 'MEDiation = MEDiator = middle person helping negotiate = non-binding'

Reference Hint

Florida Building Code Chapter 1, Section 113 - Alternative Dispute Resolution, or Construction Law reference materials on arbitration vs. mediation

More Contract Admin Questions

People Also Study

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing