Arbitration is a form of alternative dispute resolution where a neutral third party—called an arbitrator—hears evidence and arguments from both sides and then makes a decision. Unlike mediation, where the goal is to help both parties reach a mutual agreement, arbitration results in a decision made by the arbitrator, which is typically legally binding. This means both parties must accept the outcome, much like a court ruling. Arbitration is often used to resolve disputes more quickly and privately than traditional litigation.
