The Credit Professional Fall 2015 | Page 24

Consider the Benefits of Arbitration In Drafting Your Next Commercial, Consumer or Employment Agreement By Tara LaClair In today’s competitive and cost-sensitive environment, having the right policies and procedures in place has become more important than ever. This is particularly true with respect to commercial disputes, where litigation costs can quickly escalate and make pursuit of a satisfactory resolution impossible. The good news is there are alternatives to the often long and expensive court system, such as arbitration. The bad news is if you are not currently including arbitration provisions in your contracts, you may not be able to take advantage of this process. What is arbitration? It is a streamlined dispute resolution process designed to be an alternative to the court system. It is private and it is contractual. Most disputes can be submitted to arbitration simply by agreement of the parties. It is most common for parties to agree to arbitrate before the need arises but it can also be agreed upon after a dispute occurs. The part