Question

If, according to the author, a party in an arbitration believes that its award, though honest, was incorrectly determined, it A. may appeal the settlement to another arbitrator. B. may appeal the settlement to a court of law. C. may seek redress through a compromise settlement. D. may reverse the decision through due process. E. has no recourse, since the decision is final.

Short answer

The correct answer is E. The party has no recourse, since the decision is final.

Step-by-step solution

Understand the Arbitration Process

Arbitration is a process in which two parties agree to resolve their disputes outside the courts, usually with the assistance of one or more neutral third parties. It's understood that the decision reached by the arbitrator is final and binding.

Review the Options

In this case, the party believes the award, though honest, was incorrectly determined. Let's review the options provided. (A) Appeal the settlement to another arbitrator - this is generally not valid as arbitration decisions are usually final. (B) Appeal the settlement to a court of law - in some very limited situations, a court may overturn or modify an arbitration decision, but typically only when the arbitrator acted outside of their authority, showed clear bias, or the decision violates public policy. (C) Seek redress through a compromise settlement - this implies a settlement outside the arbitration decision, which is usually not the case. (D) Reverse the decision through due process - this implies some form of legal processes, which is not typically available for arbitration. (E) No recourse since the decision is final - This is generally true given the binding nature of arbitration.

Choose the Best Answer

Based on the understanding of arbitration process, option (E) appears to be the most accurate answer. Although there might be very exceptional circumstances where a decision might be questioned in a court of law, generally the decision of the arbitration is final.