The DRAA is designed to offer the advantages of arbitration (privacy, limited appeals, expert hearing officers) without arbitration's disadvantages (disputes over arbitrator selection, extensive pre-hearing discovery, protracted delays and multiple appeals). While still permitting the parties to craft how they want their arbitration to be conducted, the DRAA provides default rules that cover all the necessary details. It is expected that the DRAA will be used for many business disputes, including:
- Almost every type of business contract dispute
- Post-merger adjustments under earn out or other agreements
- Defense cost advancement requests by officers and directors
- Indemnification requests by officers and directors
- Stock or entity interest valuations arising under stockholder or other agreements
- Other owner disputes in closely-held entities, such as joint ventures or private equity deals.
