15 Arbitration Interview Questions and Answers

Arbitration is a process of dispute resolution in which two parties agree to submit their differences to an impartial third party for a binding decision. The arbitrator hears both sides of the story and then makes a ruling based on the evidence presented.

While arbitration can be used to resolve all types of disputes, it is most commonly used in labor-management relations, commercial contracts, and consumer complaints. Many companies include arbitration clauses in their employee handbooks and contract terms to avoid costly and time-consuming litigation.

If you are interviewing for a position that will involve arbitration, it is important to be prepared to answer questions about your experience and qualifications. In this article, we will provide some sample arbitration interview questions and answers to help you get started.

1. What is Arbitration?

This question is a great way to test your knowledge of arbitration and how it works. You can answer this question by defining arbitration, explaining what types of disputes you handle in arbitration and describing the steps involved in an arbitration process.

Example: “Arbitration is a method for resolving conflicts between two parties that involves a third-party neutral who listens to both sides of the dispute and makes a decision based on evidence presented during the hearing. I have experience with all types of arbitration, including commercial, labor and sports arbitration.”

2. Why would someone choose to go through arbitration rather than the courts?

This question is a great way to show your knowledge of the benefits and drawbacks of arbitration. You can answer this question by explaining what makes arbitration an attractive option for people who are in conflict with one another.

Example: “Arbitration is often chosen over courts because it’s much less expensive than litigation, which means that both parties save money on legal fees. It also allows them to resolve their dispute quickly, so they don’t have to wait months or years for a court date. Another benefit is that arbitrators are neutral third-parties, so they’re able to make decisions based solely on the facts of the case.”

3. Can you explain how arbitrators are chosen?

This question is a great way to show your knowledge of the arbitration process. It’s important that you understand how arbitrators are chosen because it can help you prepare for an interview. You should explain how you would be chosen as an arbitrator and what qualities you have that make you qualified.

Example: “Arbitrators are usually chosen by the parties involved in the case, but sometimes they’re also selected by the court or other third-party organizations. I’ve been chosen as an arbitrator on several occasions, and I believe my communication skills and ability to remain impartial make me a good candidate.”

4. When do you need an attorney for arbitration?

An employer may ask this question to see if you have experience working with attorneys. This can be an important part of arbitration, so it’s helpful to show that you know when to work with one. In your answer, explain why you would need a lawyer and what their role is in the process.

Example: “I’ve worked with attorneys before for arbitration cases. I find that they are most useful when there is a lot of money at stake or if there are complex legal issues involved. For example, I had a case where two parties were arguing over who owned a piece of land. The other party claimed that my client stole the land from them many years ago. My client denied these claims, but we needed an attorney to help us prove our side.”

5. What is a party-appointed arbitrator?

This question is a great way to test your knowledge of arbitration and how it works. It also allows you to show the interviewer that you can apply what you know about this process in real-life situations.

Example: “A party-appointed arbitrator is someone who is chosen by one of the parties involved in an arbitration case. This person has no connection with either side, but they are usually experienced in the field or industry where the dispute occurred. They’re often used when both sides agree on their qualifications and want to ensure that the decision made during the arbitration hearing is fair.”

6. Can you define mediation and tell me why it’s useful in arbitration?

This question is a great way to test your knowledge of arbitration and the skills you use in it. You can answer this question by defining mediation, explaining what it’s used for and giving an example of how you’ve used it in past cases.

Example: “Mediation is when two parties meet with a neutral third party who helps them come to an agreement on their own. It’s useful because it allows both sides to have input into the decision-making process and avoid going to court. In my last position, I mediated between a landlord and tenant who were arguing over whether or not the tenant had damaged the property. The tenant was adamant that they hadn’t done any damage, but the landlord insisted that there was evidence of damage. After hearing both sides, I decided to give the tenant a partial refund.”

7. Can you give examples of high-profile cases that have gone through arbitration?

This question is a great way to show your knowledge of arbitration and the cases you’ve worked on. When answering this question, it can be helpful to mention any awards or recognition you received for your work in arbitration.

Example: “I have been involved with several high-profile cases that went through arbitration. One case I was involved with was between two large companies who were arguing over patents. The company I represented won the case, which resulted in them receiving $10 million in damages. Another case I was involved with was when a woman sued her former employer after she claimed they discriminated against her because of her age. We won the case, resulting in the woman receiving $1 million.”

8. What does AAA stand for? How does it relate to arbitration?

The American Arbitration Association is a nonprofit organization that provides arbitration services to businesses and individuals. It’s important for an arbitrator to have knowledge of the industry standards, so they can effectively perform their job duties. In your answer, demonstrate that you know what AAA stands for and how it relates to arbitration.

Example: “The American Arbitration Association stands for the American Arbitration Association. This organization was founded in 1927 as a way to provide arbitration services to businesses and individuals. The goal of the association is to resolve disputes fairly while also maintaining transparency. I am familiar with this organization because I worked at an arbitration firm where we used its services.”

9. What is the purpose of FINRA arbitration?

This question is an opportunity to show your knowledge of the arbitration process. You can answer by explaining what FINRA is and how it relates to arbitration.

Example: “FINRA stands for Financial Industry Regulatory Authority, which is a self-regulatory organization that oversees brokerage firms and financial advisors. The purpose of FINRA arbitration is to resolve disputes between investors and their brokers or financial advisors. I have been involved in several cases where clients were unhappy with their investments and wanted to file a complaint against their broker or advisor. In these situations, I helped them understand the steps they needed to take to file a claim with FINRA.”

10. What is the difference between binding and nonbinding arbitration?

This question is a great way to test your knowledge of arbitration and how it works. You can answer this question by defining binding and nonbinding arbitration, explaining the differences between them and giving an example of each type.

Example: “Binding arbitration is when both parties agree to abide by the arbitrator’s decision. Nonbinding arbitration is when the parties don’t have to follow the arbitrator’s decision. In my last position as an arbitrator, I had a case where two companies were in a dispute over a contract. The company that hired me wanted to make sure they followed the ruling, so we did binding arbitration. The other company agreed, and we went through the process.”

11. What is the role of an arbitrator or mediator?

This question is a great way to show your knowledge of the arbitration process. You can answer this question by defining what an arbitrator or mediator does and how they do it.

Example: “An arbitrator’s role is to make decisions that are fair for both parties in a dispute. They must be able to listen carefully, ask questions and evaluate evidence. An effective arbitrator will also have excellent communication skills so they can explain their reasoning clearly to all involved. Mediators’ primary responsibility is to help two parties resolve a conflict through discussion and compromise. They may use techniques like active listening, empathy and problem-solving to achieve these goals.”

12. Does arbitration always end with an agreement?

This question is a great way to see how you handle failure. It’s important for an arbitrator to be able to recognize when they can’t reach an agreement and have the ability to make a decision that both parties will accept.

Example: “No, arbitration doesn’t always end with an agreement. In fact, it rarely does. However, I’ve found that if I’m unable to reach an agreement between two parties, it’s because there are irreconcilable differences. When this happens, I try my best to help the parties understand each other’s positions and find common ground. If I still can’t reach an agreement, I’ll ask them what their ideal outcome would be and then decide based on that.”

13. Who bears the cost of arbitration?

The interviewer may ask this question to learn more about your arbitration fees and how you handle them. You can answer this question by explaining who pays for the arbitration process, including any costs that are associated with it.

Example: “The party initiating the arbitration bears all of the cost. However, if both parties agree to share the cost, they can do so. I’ve worked on cases where both sides agreed to split the cost of hiring an arbitrator. In these situations, I make sure to negotiate a fair fee with the arbitrators.”

14. What is a mandatory arbitration clause?

Mandatory arbitration clauses are a common part of many contracts. They require the parties to resolve any disputes through an arbitrator instead of going to court. An interviewer may ask this question to see if you know how to include mandatory arbitration clauses in your work. In your answer, explain what a mandatory arbitration clause is and give examples of when you’ve used them in your past work.

Example: “A mandatory arbitration clause is a section within a contract that requires both parties to go to arbitration for any disagreements or legal issues that arise during the contract’s term. I have experience including these clauses in my contracts with clients because it helps ensure they’ll be able to get help resolving any conflicts without having to take their case to court.”

15. How can one get out of a mandatory arbitration clause?

An interviewer may ask this question to assess your knowledge of the law and how you apply it. In your answer, explain that there are two ways to get out of a mandatory arbitration clause. First, if you signed an agreement before July 9, 2011, then you can opt out by sending a letter within 30 days of signing the contract. Second, if you signed an agreement after July 9, 2011, then you must send a letter within 30 days of receiving the contract.

Example: “If I were in a situation where I had to opt out of a mandatory arbitration clause, I would do so by sending a letter within 30 days of either signing or receiving the contract.”