What Is Arbitration?
Arbitration is a way of solving disputes by bringing in a neutral third party, called an arbitrator, who listens to both sides of the problem and applies the appropriate law to come to a decision for one side or the other. If that sounds like a trial, that’s because arbitration works a lot like a trial. It’s done by agreement of the parties either at the time you sign a contract or after a dispute arises.
There are two main kinds of arbitration: nonbinding arbitration and binding arbitration.
With nonbinding arbitration, you’re not required to abide by the arbitrator’s final award. You’re free to decide not to follow the award and to instead go to a regular government court to have your dispute ...