In arbitration, your complaint is heard by an impartial third party who issues a decision after hearing both sides. If you lose in arbitration, you cannot bring a lawsuit in court over the same matter. Arbitration hearings are not held in courtrooms and formal legal procedures are not followed. You may be represented by an attorney, but it is not necessary. An arbitrator's decision is legally binding and can be enforced the same as a court judgment.
Arbitration is usually faster, more convenient and less costly than going to court.