Daniel believes that a chemical company is responsible for contaminating some land that he owns. He files suit against the chemical company. Rather than have the case go to court, the chemical company’s attorney suggests arbitration to resolve the legal dispute. Explain how arbitration would work in this case.

Arbitration can work instead of the suit filed by Daniel against a chemical company is responsible for contaminating some land that he owns if they give him a worthy compensation.

Explanation:

Arbitration means to settle out of court.

This method is used in resolving disputes outside of court to avoid certain legal documents that might haunt the company in future.

During Arbitration, parties refer their disputes to an arbitrator who reviews the evidence, listens to the parties, and then makes a decision that is favorable to both parties. More like a win-win.

Arbitration clauses can be mandatory or voluntary, and the arbitrator's decision may be binding or nonbinding but for arbitration to work, the parties must arrive at a mutual compromise.

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