In arbitration proceedings, the arbitrator's decision is typically:
Correct Answer
B) Binding and enforceable
Arbitration decisions are typically final, binding, and enforceable by courts. Unlike mediation, arbitration results in a binding decision that has limited grounds for appeal.
Why This Is the Correct Answer
Arbitration produces a final, binding award that is enforceable through the courts under the Federal Arbitration Act and state equivalents. Courts confirm arbitration awards and will enforce them like a court judgment. Grounds for appealing or vacating an arbitration award are very limited (fraud, arbitrator misconduct, excess of authority).
Why the Other Options Are Wrong
Option A: Requires court approval to be valid
Arbitration awards do not require separate court approval to be valid. Courts can enforce the award, but the award itself is final when issued. Requiring court approval would defeat the purpose of using arbitration to avoid the court system.
Option C: Subject to appeal in court
Arbitration awards are generally not subject to appeal on the merits. Unlike court decisions, parties cannot appeal simply because they disagree with the outcome. Only very narrow procedural grounds (fraud, corruption, arbitrator misconduct) allow vacatur.
Option D: Advisory only
Advisory only describes non-binding arbitration or certain expert determinations, not standard arbitration. Parties choose arbitration precisely because the award is binding — advisory opinions would provide no finality.
Memory Technique
ARBitration = the ARBiter decides, period. It's binding like a court judgment. MEDiation = just MEDiating a conversation — no one forces an outcome.
More nascla-commercial-gc Questions
How long should daily reports and project correspondence typically be retained after project completion?
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
On an electrical plan, a rectangle with three parallel lines inside typically represents:
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A subcontractor quotes $45,000 for electrical work. Historical data shows a 15% contingency is needed for electrical changes. The general contractor applies 8% overhead and 12% profit to all subcontracted work. What amount should be included in the bid?
Next Question
During project closeout, the owner requests training for their maintenance staff on new building systems. This was not included in the original contract scope. What should the general contractor do?