The rules to be followed may be designed by the parties or their representatives, or they may be adopted from a set of preexisting rules for arbitration. In either case, they will generally be less formal than those employed in the court system. A mediator works with the parties to enable and assist the parties themselves to come to a mutual agreement. In binding arbitration, the arbitrator hears the case, reviews the evidence submitted, and issues a written decision which, if not appealed, is binding on the parties and may be enforced in the court system. While there is no legal requirement that a party to an arbitration be represented by an attorney, it is generally advisable, particularly in binding arbitration.
Arbitration is generally speedier and usually less expensive than a lawsuit.
Hearings can be scheduled to accommodate the parties, attorneys, and witnesses. In appropriate cases, witnesses' testimony can even be taken by conference telephone call. Arbitration is private, so there need be no public knowledge of the dispute. The parties may select as arbitrator a person who has knowledge and experience in the field involved in the dispute. Usually, the parties agree to apply the same procedural and substantive rules that would apply if the case were heard in the appropriate public court having jurisdiction.