What happens if a party does not object to arbitration within the 20-day notice period?

What happens if a party does not object to arbitration within the 20-day notice period?

• A. The claim will be dismissed
• B. They can still contest the merits
• C. They are precluded from objecting to arbitration
• D. Arbitration will be waived altogether

Answer: (C)

When a party fails to object to arbitration within the designated 20-day notice period, they are precluded from contesting the arbitration demand later on. This means that the party has effectively waived their right to object to the arbitration process, and they must proceed with the arbitration as initially requested. The rationale behind this rule is to encourage timely responses and to prevent parties from delaying the arbitration process by raising objections after the notice period has passed. By not objecting within the specified timeframe, the party essentially agrees to the arbitration procedure that is set forth, making it a critical part of upholding the integrity and efficiency of the arbitration process.

When a party fails to object to arbitration within the designated 20-day notice period, they are precluded from contesting the arbitration demand later on. This means that the party has effectively waived their right to object to the arbitration process, and they must proceed with the arbitration as initially requested. The rationale behind this rule is to encourage timely responses and to prevent parties from delaying the arbitration process by raising objections after the notice period has passed. By not objecting within the specified timeframe, the party essentially agrees to the arbitration procedure that is set forth, making it a critical part of upholding the integrity and efficiency of the arbitration process.