What Does Arbitration Mean?

Arbitration, a form of alternative dispute resolution, is a way to resolve disputes outside the judiciary courts. The dispute will be decided by one or more persons, which renders the 'arbitration award'.

What is arbitration and how does it work?

Arbitration is a method of resolving disputes outside of court. Parties refer their disputes to an arbitrator who reviews the evidence, listens to the parties, and then makes a decision. ... Arbitration clauses can be mandatory or voluntary, and the arbitrator's decision may be binding or nonbinding.

What is arbitration in simple words?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.