What does arbitration involve?

Arbitration is a method of dispute resolution that involves an independent third party, known as an arbitrator, who is tasked with reviewing the case and making a binding decision on the matter. This process occurs outside of the court system, providing parties with a more streamlined and often less formal path to resolving their disputes compared to traditional litigation. The key aspect of arbitration is that the decision rendered by the arbitrator is usually final and enforceable, much like a court judgment, which is why many parties opt for this approach when they want to avoid the time and costs associated with a trial.

The other choices do not accurately describe arbitration. For instance, resolving disputes in front of a jury pertains to a trial in a court system, which is distinctly different from arbitration. Similarly, while arbitration can be initiated voluntarily, it is not a court-based procedure as judges are not involved in the arbitration process, and a voluntary agreement to communicate disputes does not capture the binding and structured nature that arbitration entails.