Meaning: 'Characteristics' means the features or qualities that define something, in this case, the specific traits of arbitration.

Wrong options:

• forms: 'Forms' suggests types or varieties, which does not accurately capture the essence of what defines arbitration.
• arts: 'Arts' refers to creative skills or disciplines, which is unrelated to the context of conflict resolution.
• games: 'Games' implies a competitive activity, which does not align with the serious nature of arbitration.

Correct answer: bound

Explanation: The word 'bound' is used correctly here to indicate that the parties agree to be legally or morally obligated by the judgment, fitting both grammatically and contextually within the sentence.

Meaning: 'Bound' means to be obligated or constrained by a decision or agreement.

Wrong options:

• state: 'State' does not convey the sense of obligation and is more about expressing or declaring something, which does not fit the context.
• bend: 'Bend' implies a physical action of flexing, which is irrelevant in this legal context.
• step: 'Step' suggests a movement or action, which does not relate to the concept of being obligated by a judgment.

Correct answer: body

Explanation: The term 'body' fits well as it refers to a group or system that establishes rules or laws, making sense in the context of arbitration where such a governing body may be absent.

Meaning: 'Body' in this context refers to an organized group or entity that creates or enforces laws or rules.

Wrong options:

• stage: 'Stage' refers to a phase or level, which does not apply to the context of legal frameworks.
• rock: 'Rock' is unrelated and does not fit the context of legal terminology.
• ramp: 'Ramp' suggests a slope or incline, which is not relevant to the discussion of legal structures.

Correct answer: law

Explanation: The word 'law' is appropriate as it refers to the system of rules that are recognized and enforced through social institutions, fitting the context of arbitration where legal frameworks may be unclear.

Meaning: 'Law' refers to the system of rules that a particular country or community recognizes as regulating the actions of its members.

Wrong options:

• mind: 'Mind' relates to mental processes and does not pertain to legal structures.
• state: 'State' refers to a political entity or condition, which does not fit the context of legal rules.
• row: 'Row' implies a line or series, which is not relevant to the concept of legal frameworks.

Correct answer: set

Explanation: The term 'set' is suitable here as it refers to a collection or group of rules that may apply, aligning well with the context of discussing arbitration.

Meaning: 'Set' means a collection or group of items, in this case, referring to a collection of rules.

Wrong options:

• lack: 'Lack' indicates absence, which does not fit the context of discussing existing rules.
• stage: 'Stage' refers to a phase, which does not apply to the context of rules in arbitration.
• camp: 'Camp' suggests a temporary place or group, which is unrelated to the legal context.

Correct answer: subject

Explanation: The word 'subject' is correctly used here to indicate that the arbitrator is under the influence of prior agreements, fitting both grammatically and contextually within the sentence.

Meaning: 'Subject' means to be under the authority or control of something, in this case, prior agreements.

Wrong options:

• bracket: 'Bracket' refers to a support structure or grouping, which does not fit the context of legal obligations.
• rage: 'Rage' implies intense anger, which is irrelevant in this legal context.
• stage: 'Stage' refers to a phase or level, which does not apply to the context of legal agreements.

Correct answer: suitable

Explanation: The term 'suitable' is appropriate as it indicates that the basis of justice must be appropriate or fitting, aligning well with the context of arbitration.

Meaning: 'Suitable' means appropriate or fitting for a particular purpose or situation.

Wrong options:

• able: 'Able' refers to having the power or skill to do something, which does not fit the context of appropriateness in legal decisions.
• table: 'Table' refers to a piece of furniture or a data arrangement, which is irrelevant in this context.
• stable: 'Stable' implies steadiness or reliability, which does not convey the idea of appropriateness in the context of justice.