Arbitration in General
Arbitration is a form of alternative dispute resolution (ADR) that the parties to a contract may choose, where the arbitrators selected by the parties settle a dispute between the parties in a private and non-public manner. In Finland, arbitration is regulated in the Arbitration Act. The parties may agree amongst themselves on the arbitration very freely. The arbitrators must reserve a possibility for the parties to present their case. The parties may also agree that the regulations of an arbitration institute apply to the arbitration. In Finland, the most important quarter administering arbitration is The Arbitration Institute of the Finland Chamber of Commerce.
Arbitration is often used to resolve disputes arising in the business world. The advantages of arbitration include;
Speed and efficiency: in arbitration, decisions are often made much more quickly than in ordinary courts and the award is in principle final, meaning that it can only be appealed in exceptional circumstances.
Confidentiality: arbitration is not public, as in court proceedings, and the parties can more effectively preserve their business secrets, for example.
Flexibility: the parties themselves can influence the rules of the arbitration procedure and choose the arbitrator or the arbitral tribunal and tailor the procedure to their needs.
Expertise: the parties can choose an arbitrator or arbitration tribunal with specific expertise in the subject matter of the dispute.