In which situation is arbitration most beneficial for resolving disputes?

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Arbitration is particularly beneficial when a quick decision is essential for the parties involved in a dispute. The arbitration process typically occurs outside of the traditional court system and can be conducted much more swiftly. This expeditious nature is one of the primary reasons parties may choose arbitration over litigation, especially in time-sensitive situations where delays could lead to further complications or costs.

While the other scenarios do present situations where arbitration might also be useful, they do not emphasize the time-sensitive aspect as strongly as the need for a quick decision does. Trusting each other (as in the first option) might ease communication but doesn't accelerate the process. Maintaining a relationship (as in the third option) is valuable, but there are other mechanisms that could also serve that need. Treating disputes as relatively minor (the last option) doesn't inherently necessitate a quick resolution, as it's more about the complexity and stakes involved in the situation. Thus, the emphasis on a rapid outcome solidifies why the focus on urgency makes arbitration particularly advantageous in such cases.

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