What is arbitration?

Arbitration is a form of alternative dispute resolution where a neutral third party, known as an arbitrator, hears both sides of a dispute and makes a binding or non-binding decision. It is often used as an alternative to court litigation because it can be faster, more private, and less formal. Arbitration is commonly used in commercial, labor, and consumer disputes, and the process is governed by the rules agreed upon by the parties or set by an arbitration institution. The arbitrator’s decision, called an award, is usually final and enforceable by law. This method is especially valued for its confidentiality and efficiency.