LEGL 2700 Hackleman Cases Practice Test 2025 – Complete Exam Prep

In legal terms, arbitration refers to a process where a neutral third party, known as an arbitrator, is appointed to make a binding decision in a dispute between two or more parties. This process is often chosen as an alternative to litigation, allowing parties to resolve their issues outside of the courtroom in a more informal setting. Arbitration is governed by agreed-upon rules and procedures, which can lead to a more efficient resolution. The key aspect of arbitration is that the decision made by the arbitrator is typically binding, meaning that the parties must accept the outcome and comply with the decision, similar to a court judgment. This aspect of binding authority distinguishes arbitration from other dispute resolution methods, such as mediation, where the mediator facilitates negotiation but does not impose a solution.