Learn About Arbitration Pros and Cons!

Learn About Arbitration Pros and Cons!

Arbitration is a requirement for all moving companies to resolve disputes from personal injury cases and commercial disputes privately without going to court and also avoid the expenses of the court. In this post, you will get to know some of the most common advantages and disadvantages challenges of arbitration for both parties which can help you to choose to right arbitration program for moving company and for customers.

If you are thinking to enter the moving sector or also having a business in the moving sector then you must need to know about arbitration program and how it works. Before buying this program, must know about it. Court legation is very expensive these days and arbitration can be an alternative which helps you to solve all disputes.

What Is Arbitration?

It is FMCSA approved program which will solve your disputes legally but before the courtroom. Movers can buy arbitrator program for a year or more to solve their many claims at a time with the help of arbitrator which would be involved in damages to goods on the part of the mover.

Pros and Cons of Arbitration:

The complete information about an arbitration program will be helping you to make the right decision to buy an arbitration program that is right for you or not and helping to choose the best program which is best for your business. Before buying, you can compare it with others and also know the advantages and disadvantages of the programs which will help you to make the right decision. Many arbitrators offer their programs at cheap rates but cheap is not always good.

You should know its pros and cons which will help to make an informed decision

Pros of Arbitration:-

Private: An arbitrator resolves all disputes privately without disclosing anything. It keeps things private and confidential which are benefits for both parties, who don’t want media coverage and don’t want to disclose things in front of anyone. It is less complicated than a court proceeding.

Cost: It is less costly than proceeding through litigation and the best way to resolve any disputes at a time with the help of an arbitrator. If you take legal action and go to court for the hearing, it is a very lengthy process and expensive too for both parties. On the other hand, Arbitration It helps control the expenses for both parties.

Faster than Litigation: Recent studies have proved that arbitration is the best option for moving companies to solve their many disputes timely. Where the court case takes 18 months to solve them, an arbitration program will take 475 days. It is also a time-saving program.

Flexible: It is very flexible for both parties because an arbitrator schedules hearings according to the availability and needs of the parties including weekends and evenings.

Simplified rules of evidence and procedure: An arbitration program has simple rules which can be followed easily for parties than litigation. If we think about litigation, it involves many paperwork, multiple hearings and too expensive.

Fair Decisions: No single party can control the arbitrator or its decision because its an agreement of both parties in which arbitrator and its services are selected by both parties. It solves disputes and takes the fair decision for both parties.

Arbitration Pros and Cons

Cons of Arbitration:-

No jury:

There is no judge in an arbitration program as litigation. An arbitrator or arbitrators essentially play the role of both the jury and judge and handle all disputes. But having a jury and judge is very important for any case or dispute for solving them legally.


Surprisingly, the cost factor appears on this list also as a “cons” because arbitration does not always reduce the costs of solving the legal problem.

Sometimes it takes many forms which increase the total cost and its complexity. It is also depend on the selection of an arbitration program.

Limited recourse:

An arbitrator has limited resources to solve all disputes at a time because there are no judge or juries and all the dispute is solved by the arbitrator itself.

Lack of transparency:

You all know that arbitration hearings are generally held in private and not in an open courtroom and in front of a judge. Arbitrator decisions are usually not publicly accessible. Sometimes it can be troublesome because arbitration decisions are so infrequently reviewed by the courts.

Uneven playing field:

Some are concerned that the “take-it-or-leave-it” nature of many arbitration program clauses work in favor of the manufacturer not in the customers’ favor, because of their less power and shallow pockets.


Sometimes location can be inconvenient for some customers. An arbitrator schedules hearing according to both parties but sometimes it is not convenient for a customer’s point of view.

These were some pros and cons of the Arbitration Program which would give you a clear understanding of it.

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