Landscape Architect Registration Examination (LARE) Practice Exam

Typically, how is the arbitration process established?

1. Established and set by attorneys

2. Described in the professional services contract

3. Essential part of dealing with contractors

4. Occurs only after litigation procedures are terminated

The correct answer is: Described in the professional services contract

The arbitration process is typically established as part of the professional services contract, where the terms of arbitration, including how disputes will be resolved outside of court, are explicitly outlined. This inclusion is critical as it provides both parties with a clear understanding of how to address potential conflicts that may arise during the course of their professional relationship. It typically details aspects such as the selection of an arbitrator, the rules governing the arbitration, and the scope of the arbitrator's authority. Contracts often include clauses that specify whether disputes should be resolved through arbitration rather than litigation, thereby promoting a more streamlined, cost-effective, and less adversarial resolution method. This proactive approach to dispute resolution is beneficial for both parties, as it helps to avoid the prolonged and often costly process associated with court proceedings. The other options, while they may touch on related concepts, do not accurately capture the nature of how arbitration is commonly established. For example, while attorneys may influence the arbitration process, it is not solely established by them. Additionally, referring to arbitration merely as an essential part of dealing with contractors overlooks its formalization through contracts. Lastly, suggesting that arbitration occurs only after litigation procedures are terminated misrepresents the nature of arbitration, which is often intended to be an alternative to litigation rather