which parties can decide to use arbitration?
A more formal method of ADR is arbitration, in which an arbitrator (a neutral third party or a panel of experts) hears a dispute and imposes a resolution on the parties. Arbitration differs from other forms of ADR in that the third party hearing the dispute makes a decision for the parties.
Unlike arbitration, where a neutral third party makes a final decision, the mediator facilitates a process that allows the disputing parties to arrive at a resolution. The mediator may also allow a certain amount of venting, and, if the parties cannot talk directly with each other, let them talk through him or her.