In arbitration proceedings, the arbitrator's decision is:
Correct Answer
C) Binding and enforceable like a court judgment
Arbitration decisions are binding and enforceable like court judgments, with very limited grounds for appeal or modification.
Why This Is the Correct Answer
An arbitration award is binding and enforceable like a court judgment. Under the Federal Arbitration Act and most state laws, courts will confirm an arbitration award upon request, making it fully enforceable through the same legal mechanisms as any court-ordered judgment (liens, garnishment, etc.).
Why the Other Options Are Wrong
Option A: Subject to appeal to a higher arbitration panel
There is no 'higher arbitration panel' in standard construction arbitration. Unlike the judicial system with trial courts, appellate courts, and supreme courts, arbitration has a single decision-maker or panel — there is no tier above it within the arbitration system.
Option B: A recommendation that parties may accept or reject
Calling the award a 'recommendation' describes mediation, not arbitration. A mediator makes suggestions; an arbitrator issues a binding decision. If parties could simply reject the outcome, there would be no point in choosing arbitration over negotiation.
Option D: Valid only if both parties agree to accept it
Requiring mutual acceptance of the award would make arbitration non-binding, which contradicts its fundamental legal character. If both parties had to agree after the fact, it would function as mediation, not arbitration.
Memory Technique
Arbitration = a 'private judge.' Just as you cannot ignore a court ruling simply because you dislike it, you cannot ignore an arbitration award. The arbitrator's decision carries the same weight as a judge's order once confirmed by a court.
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