HRCI Practice Exam Prep: Study Guide & Practice Test

Compulsory arbitration refers to a process where disputes between employees and employers must be resolved through arbitration rather than through the court system. This process is often used as a way to avoid costly and lengthy litigation. In this type of arbitration, all parties are required to accept the decision made by the arbitrator as final and binding, and waive their right to take any further legal action.

Option A is incorrect because compulsory arbitration does not necessarily mean that employees cannot sue their employers. It simply means that if they do have a dispute, it must be resolved through the arbitration process. The option of suing may still be available in certain circumstances.

Option B is incorrect because compulsory arbitration does not specify that the arbitrator must be selected from the American Arbitration Association (AAA). While the AAA is a commonly used organization for arbitration, it is not always required in compulsory arbitration.

Option C is incorrect because while a written arbitration agreement is commonly used in compulsory arbitration, it is not always a requirement. In some cases, the process may be initiated without an agreement beforehand.

Therefore, the correct answer is D because all of the options mentioned are commonly included in compulsory arbitration, but none of them are always required.