Resolving business disputes quickly is typically a priority for Georgia business owners. Arbitration is a process that can be both quick and cost effective, making it an attractive option for those who are eager to deal with business disputes. While it can certainly be effective in some situations, there are downsides to arbitration. 

Watch out for arbitration clauses 

Many business contracts include arbitration clauses that require parties to resolve disputes via arbitration rather than in court. Not all arbitration clauses are built the same, though. A thorough clause should address a number of things, including: 

  • Scope and issues to be arbitrated 
  • Forum in which it will take place 
  • Number of arbitrators 

Arbitration’s finality 

Overturning an arbitrator’s decision can be exceptionally difficult. This can be a good thing if a business owner believes that he or she has a solid case and sufficient evidence to back up that stance. However, there are situations in which an owner might be unsure of his or her case or the arbitrator comes back with a wholly unexpected decision. Should this happen one would still need to proceed to court in an attempt to overturn the decision. 

While arbitration certainly has its benefits, one should also carefully consider the drawbacks. There are times when addressing business disputes in court might be more appropriate than working with an arbitrator. Georgia business owners who plan to include arbitration clauses in their contracts may want to consult with a knowledgeable attorney about the most effective way to proceed with this plan.