Arbitration

Arbitration is an alternative to the court system for the resolution of disputes. The advantages are quite clear: Disputes are resolved by one’s peers, who are knowledgeable about contracts, quality and market conditions; justice and equity are achieved in a matter of weeks, not months or years; and costs are minimal because the services of lawyers are not required. AFI arbitrators serve without pay, disputes are settled without further recourse to the courts 3 , and the losing party pays the modest arbitration fee.

The AFI Arbitration Service began in 1906. From the start, it has been a businessman’s service. It deals primarily with disputes concerning non-performance of contracts and the quality of merchandise delivered against contracts.

Arbitrators are selected by an Arbitration Board for their expertise in the product or commodity in dispute. They are independent businessmen who also commit themselves in their contracts to submit disputes to arbitration by their peers. Parties to the arbitration may challenge the appointment of selected arbitrators. They have one challenge without cause and unlimited challenges with cause.