The AAA initiates the case without any need for a court order, placing the burden on a reluctant party. As the designated administrator, the AAA is able to accept the case and move it forward to the point where arbitrators have been appointed to take charge. An enforceable arbitration clause ensures that contractual disputes can be resolved, requiring the parties to arbitrate, whether the contract is a license agreement or some other transactional document. Arbitration encourages good faith negotiations, exerting pressure upon the negotiators to reach a settlement. If the parties cannot reach a settlement, an arbitrator will decide the case for them.
Arbitration can provide an efficient system for obtaining a legally enforceable decision.
Hearings can be relatively informal. The parties can specify the issues being submitted to arbitration, select the category of arbitrators they desire, or make any other changes in the procedure. Most arbitration awards are final and binding, but the parties can agree that an award will be advisory, or subject to review. As with mediation, arbitration allows the parties to resolve disputes without publicity or government intervention, to avoid detrimental publicity. Arbitration hearings can be simple to conduct, taking place in a conference room, with the parties sitting on opposite sides of a table, with the arbitrator at one end.