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Problem 1: Kurt has a consulting business. All of his agreements with clients have dispute resolution provisions that stipulate how disputes will be resolved. Kurt's agreements with his clients all require the use of confidential binding arbitration, instead of court proceedings. What are some of the potential advantages of this approach for Kurt and his business?
Option 1: An arbitration process can be more flexible than a court proceeding, allowing for more control over the decision makers, the procedures and the potential solution to the dispute.
Option 2: Arbitration proceedings almost always result in more extensive discovery to allow the parties to dig more deeply into the facts in dispute.Option 3: Arbitration proceedings can be confidential, so the existence of a dispute is less likely to harm Kurt's business reputation.Option 4: An arbitration is more advantageous for Kurt, because he can almost always successfully challenge the arbitrator's decision in court to achieve a better outcome.
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