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(1) The party and the highest-level local organizations set up courts of arbitration to settle and decide on disputes between the party or a local organization and individual members as well as disputes on the interpretation and implementation of the statutes. Joint courts of arbitration may be set up to serve a number of local organizations at district level.
(2) The members of such courts of arbitration shall be elected for a maximum period of four years. They may not be members of the executive body of the party or a local organization or be in the employment of the party or a local organization or receive regular emoluments from them. They shall be independent and not bound by any instructions.
(3) The statutes may provide that the courts of arbitration, in general or in a particular case, comprise associate judges nominated on a parity basis by the litigants.
(4) The functions of the court of arbitration shall be governed by arbitration rules to ensure that litigants are given a fair hearing and to guarantee the rejection of any prejudiced member of the court of arbitration.