What is the difference between direct and indirect arbitration?

In Virginia, direct and indirect arbitration both refer to the process of resolving disputes without going to court. The primary difference between the two lies in the type of arbitrator who is appointed. In direct arbitration, a single person is appointed to act as the arbitrator. This arbitrator is responsible for hearing both sides of the argument and making a final, binding decision. The parties to the dispute must accept the outcome of the direct arbitration. Indirect arbitration, on the other hand, involves the selection of a panel of arbitrators. This panel is appointed to hear both sides of the argument, review the evidence, and consider any relevant laws and legal precedents. The panel then makes a final decision and the parties to the dispute must accept the outcome of the indirect arbitration. The decision that the direct or indirect arbitrator renders is legally binding and cannot be appealed. The court system may not be asked to review the decision of the arbitration and the parties to the dispute are not able to challenge the outcome in court. As a result, it is important that the parties to the dispute ensure they have received a fair and impartial hearing and that their rights are being respected in the arbitration process.

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