1 The two main theories of arbitration may be

1 The two main theories of arbitration
may be described as judicial and
political. One might even go so far as to
characterize them by saying that the first
5 is based on how arbitration is supposed
to work, while the second is based on
how it does in fact work.
The judicial theory implies that a
“just” solution of the dispute does in fact
10 exist, and that it is the duty of the
arbitrator to decide on the principles and
the facts involved. The arbitrator sits as
a private judge, called upon to
determine the legal rights and the
15 economic interests of the parties
involved as these rights and interests
are demonstrated by the information
provided by the parties themselves. The
political theory, on the other hand,
20 regards arbitration as an extension of
both collective bargaining and, of
course, collective coercion. The
arbitrator functions as a sensitive
instrument of sorts, accurately recording
25 the relative strengths of the parties and
making sure that the lion gets his share.
To some extent, however, these
opposing theories represent a confusion
between arbitration and conciliation, the
30 act of appeasing both parties to a
dispute without necessarily rendering a
just or pragmatic decision. The notion of
compromise that dominates conciliation
may also guide arbitration, although, in
35 the process of arbitration, the result
necessarily requires the decision of an
outsider rather than an accommodation
between the parties themselves.
Nevertheless, since to some the idea of
40 arbitration necessarily involves absolute
“rights,” compromise is likely to be
regarded as the solution of the timid or
the unprincipled. Arbitration grounded in
political theory, while more likely to
45 permit conciliation, is therefore less
preferable to both parties in a dispute,
despite the obvious practicality of
compromise.

1. Which of the following, if true, would most effectively weaken the author’s assessment of the drawbacks of the political theory of arbitration?

Litigation is becoming a more popular alternative to arbitration.

A system of checks and balances was put in place to reduce the likelihood of finding biased arbitrators.

Contending parties in most disputes establish compromise as one of their most important goals.

The process of arbitration uncovered new strategies for avoiding conflicts between contending parties.

Resolution of the problem of the opposing rights of the parties involved in labor settlements can be achieved.


2. It can be inferred from the passage that all of the following are elements of the political theory of arbitration EXCEPT

an evaluation of the balance of power between disputing parties

a willingness on the part of both parties to accept compromise

a relative disregard of the importance of moral right in the dispute

an understanding that any compromise must appear to be just

an extension of collective bargaining