Arbitration:

Arbitration is another way to settle a dispute without going to court.  In Arbitration a neutral third party is appointed to review the case and render a final decision.  The arbitrator's decision is legally binding and can only be appealed under strict circumstances.

Participants in arbitration can withdraw only before a final decision is made and only if no arbitration clause has been signed in a previous agreement.

Businesses use Arbitration Clauses in contract Agreements that require anyone doing business with them to use arbitration as the preferred method of resolving disputes they have with the business.

Arbitration is faster than a formal court proceeding.  It is also cheaper and more flexible to businesses.  Arbitration agreements can be made confidential. 

Both parties pay the cost for arbitration.

If the losing party to a dispute choses not to comply with a arbitation judgment the winning party can get enforcement by seeking judicial remedies called an action to "confirm" an award.