What is arbitration in Alternative Dispute Resolution?

• A. Mediation by a neutral party
• B. Non-binding recommendation
• C. Binding decision by the arbitrator
• D. Ombudsperson findings

Answer: (C)

Arbitration is a dispute-resolution method in which a neutral arbitrator hears the facts, considers any contract terms and applicable law, and then issues a decision on the merits that is binding on both parties. The result, known as an award, is enforceable like a court judgment, and appeals are generally limited or unavailable, depending on the governing contract and law. This makes arbitration distinct from mediation, where a neutral facilitator helps parties reach a voluntary agreement and the outcome is not binding unless the parties choose to formalize it. It also differs from non-binding recommendations or ombudsperson findings, which are advisory and not enforceable as the final resolution.