Arbitration is submission of a dispute to one or more impartial persons for a final and binding decision. The parties control the range of issues to be resolved by arbitration, the scope of the relief to be awarded, and many of the procedural aspects of the process.
Arbitration is less formal than a court trial.
The hearing is private. Few awards are reviewed by the courts because the parties have agreed to be bound by the decision of the arbitrator. In some cases, it is prearranged that the award will only be advisory. Arbitration and the Law Arbitration awards are legally binding and enforceable in most jurisdictions. The US Arbitration Act provides for enforcement of arbitration agreements and awards in interstate-commerce and international contracts.