Assertion (A): Arbitration is popular especially for commercial disputes.

Reasoning (R): The process of dispute resolution through arbitration is confidential, unlike the court proceedings which are open to the public.

Both A and R are correct and R is the correct explanation of A.

Arbitration can be chosen by the parties either by way of an agreement (Arbitration Agreement) or through the reference of the Court (Court Referral of Arbitration- See Glossary). The parties in an arbitration have the freedom to select a qualified expert known as an arbitrator. The process of dispute resolution through arbitration is confidential, unlike the court proceedings which are open to the public. This feature of arbitration makes it popular especially for commercial disputes where business secrets revealed during the process of dispute resolution are protected and preserved. Similarly companies can maintain their commercial reputation, as they can prevent the general public or their customers from discovering the details of their on-going legal disputes.