What happens during arbitration?

During arbitration, an independent person, known as an arbitrator, is appointed to evaluate the evidence and arguments presented by both parties involved in a dispute. This process involves the arbitrator conducting a thorough examination of the case, often similar to a court proceeding but typically more informal. The key characteristic of arbitration is that the arbitrator has the authority to make a binding decision that resolves the dispute.

This process is often chosen as an alternative to going to court, as it can be faster and less expensive. The decision made by the arbitrator is usually final and legally enforceable, offering both parties closure on the matter.

The other options involve different dispute resolution methods. Presenting a case to a court refers to litigation, where a judge makes the ruling rather than an independent arbitrator. Mediation is a voluntary process where a mediator helps facilitate discussions and negotiations between parties without making a ruling. Lastly, discussions occurring without a formal witness do not accurately describe arbitration, as this process typically involves formal presentations and procedures typically overseen by the arbitrator.