Relates to providing for vacation of an arbitration award on the ground that the arbitrator was affiliated with a party, or has a financial interest in a party or the outcome
What changed between versions
New definitions for 'Employment' and 'Consumer' were added to clarify exactly which types of disputes fall under these new arbitration rules.
The requirement for a 'neutral third-party arbitrator' was updated to explicitly apply to employment and consumer disputes, preventing parties from choosing biased arbitrators in these cases.
New mandatory disclosure rules require arbitrators to reveal any financial interests or personal relationships that could affect their impartiality before accepting a case.
Courts are now empowered to vacate (cancel) arbitration awards if an arbitrator fails to disclose a conflict of interest or if a party does not object within a specific 30-day window.
The new strict neutrality and disclosure rules do not apply to arbitrations conducted under collective bargaining agreements between employers and labor unions.