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Distinguish between 'Arbitration' and 'Conciliation' - Leaving Cert Business - Question 1. - 2004
Question 1.
Distinguish between 'Arbitration' and 'Conciliation'. (i) Arbitration (ii) Conciliation
Worked Solution & Example Answer:Distinguish between 'Arbitration' and 'Conciliation' - Leaving Cert Business - Question 1. - 2004
Step 1
(i) Arbitration
Answer
Arbitration is a formal method of resolving disputes where the parties involved send their disagreement to an impartial third party. This third party, known as the arbitrator, reviews the evidence and arguments presented by both sides and then makes a binding decision on the matter. The key aspects of arbitration include:
- Binding Decision: The arbitrator's decision is typically final and enforceable by law.
- Independence: The arbitrator is neutral and independent of both parties involved.
- Types of Disputes: Arbitration can cover various types of disputes, such as contract disputes, commercial disagreements, and industrial relations.
- Conditions: Common contexts for arbitration include legal disputes, employment contracts, and consumer agreements.
Step 2
(ii) Conciliation
Answer
Conciliation is a more informal and cooperative process in which a neutral third party, known as a conciliator, assists both sides in discussing their issues and finding a mutually acceptable resolution. The features of conciliation include:
- Non-Binding: Unlike arbitration, any agreement reached is not legally binding unless both parties choose to formalize it.
- Voluntary Process: Participation in conciliation is generally voluntary, and either party can withdraw at any time.
- Focus on Communication: The conciliator promotes dialogue, helping parties understand each other's positions and explore solutions.
- Applicable Contexts: Common in labor disputes and community conflicts, conciliation aims to prevent issues from escalating to arbitration or litigation.