What is arbitration? Was it Shakespeare who mused about killing all the lawyers? Henry the 6th or something? Hmmm…
Well if he’d done so, that’d make arbitration…not necessary.
So first…what IS arbitration? Well, basically it’s the adjudication of a case outside of the formal normal court system, which is massively clogged in the U.S....like, needs-a-million-gallon-enema kind of clogged.
The cost of fully adjudicating cases (that is, pursuing a lawsuit all the way to a judgement) has become astronomically expensive, not to mention time consuming. The process is also filled with silly loopholes that make getting to a real conclusion painful, if not impossible.
So it has become common practice for parties entering a partnership or contract in whatever form to agree to arbitration if a big fat hairy conflict arises down the road. In arbitration, both sides just hire their own separate judge…usually a retired judge from the normal court system with a lot of miles on her tires.
In arbitration, everyone simply relies on the arbitrating judge to be… fair. Lots of silly loopholes go away and quote justice unquote in whatever form is arrived at…faster. And if that doesn’t work…you can always do things the Shakespeare way.
Related or Semi-related Video
Finance: What is Contingent Liability?4 Views
Finance allah shmoop what is contingent liability All right you
know what a liability is right It's a debt it's
a promise you've made that you need to fulfill teo
pay someone and fulfilling it can be done with cash
or ah promise of delivering inventory or after you've sold
the home to the joneses An interesting family with oddly
large foreheads you know delivering good title to the home
to them right So you're fulfilling liability of producing your
home so what's a contingent liability Well think of it
is a call option or a put option on a
security A contingent liability is a derivative of some other
underlying being like another liability Well the most common contingent
liability would be a filed lawsuit that is more than
just an ambulance chasing securities lawyer hoping to get a
quick five hundred grand to go away google might be
willing to pay three billion dollars toe by ring That
wireless doorbell company started by some weirdo contingent upon ring
properly defending its lawsuit from honeywell which claims that they
own the patents on the process while the financial outcome
of that lawsuit is a contingent liability to the company
Ring and the outcome of the joneses moving into town
well is a worldwide dominance and the enslavement of all
human I mean that's what's at stake their people But 00:01:31.39 --> [endTime] not least they keep their front lawn looking nice
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