The Federal Arbitration Act, Title 9 of the U.S. Code, establishes arbitration as a legally recognized means of effectively resolving disputes. There are numerous state laws enforcing arbitration and many states have adopted the Uniform State Arbitration Act. A dispute is submitted to an arbitrator for a decision. An arbitrator is a neutral person, sometimes with expertise in the subject of the dispute,who resolves disputes.
Arbitration is generally either binding or non binding.
In binding arbitration the decision of the arbitrator is final and there is no appeal from the arbitrator's award. Parties voluntarily may agree through prior arrangements or at the time of dispute for binding arbitration. Non binding arbitration can help a party with a weak claim avoid the expensive costs of litigation. Non binding arbitration is often court-ordered as a means of relieving overloaded judicial dockets.