ers (NASD), one of the three arbitrators must have a background in the securities industry and one must represent the public, either of whom may be but do not have to be lawyers.
Arbitration differs from other forms of alternative dispute resolution (ADR) in that arbitrators have the power to decide the dispute. Mediation, for example, is "a process whereby a neutral third party assists disputing parties reach a mutually acceptable decision" (Hoffman, 1994, p. 848). In negotiations, the parties resolve their dispute directly without the intervention of third parties. In mini-trials and early neutral evaluation, an impartial third party hears the presentations of the parties and renders its opinion as to how the dispute can be resolved which is not binding on the parties. In other variations, such as 'high-low' arbitration, the opinions of the arbitrators set the outer bounds for the resolution of the dispute from which the parties can choose. In 'baseball' arbitration, each side puts forward its best position and the arbitrator chooses
...