What does arbitration involve?

Arbitration involves a binding settlement process where disputes are resolved by a neutral third party, known as an arbitrator or a panel of arbitrators. This method is designed to be more straightforward and quicker than traditional court proceedings. The arbitrator makes a decision based on the evidence and arguments presented by both parties, and their decision is enforceable in a court of law, meaning that both parties are obligated to adhere to the outcome. This binding aspect distinguishes arbitration from other forms of dispute resolution such as mediation or advisory opinions, which may not necessarily enforce compliance.

In the context of arbitration, the term "disinterested persons" refers to the impartiality of the arbitrators, who do not have a stake in the matter being settled. This objectivity is crucial for ensuring fair treatment of both parties involved in the dispute.