What is the term for the issue that arises when a party compels arbitration?

Prepare for the Legal Environment of Business 1 Exam. Study effectively with our multiple-choice questions, flashcards, and practice tests designed to ensure you understand businesses' legal framework. Sharpen your skills and ace your exam with confidence!

The term for the issue that arises when a party compels arbitration is known as the issue of arbitrability. This concept refers to whether a particular dispute is subject to arbitration under the terms of the arbitration agreement or applicable law. Arbitrability involves determining if the dispute falls within the scope of what the parties agreed to arbitrate.

Typically, this can include questions about the types of disputes that can be arbitrated, whether specific statutory claims can be subject to arbitration, and even whether all parties involved have consented to arbitration. Courts often address the issue of arbitrability before proceeding with arbitration to ensure that the matter is appropriate for this alternative dispute resolution method.

Other terms, such as enforceability, jurisdiction, and validity, refer to different legal concepts. Enforceability pertains to whether an arbitration agreement can be upheld in a court of law. Jurisdiction deals with a court’s authority to hear a particular case, while validity concerns whether an arbitration agreement itself is legally binding and enforceable. Each of these concepts plays a role in the broader context of arbitration but does not specifically address the issue that arises when a party is compelled to arbitrate a dispute.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy