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you have a dispute with a business entity and you find out that you are going to be in binding arbitration hi im robert todd and im here to explain what is binding arbitration well binding arbitration is a process by which an independent third party serving as an arbitrator is hired by the institution with whom you have the dispute to preside over a hearing our process to decide the outcome basically by agreeing to binding arbitration you have given up your right to sue in a court of law yes binding arbitration is less expensive less time consuming but there are some pitfalls to binding arbitration for the most part binding arbitration usually involves an arbitrator that is picked by the institution or entity with whom you have the dispute i would recommend in my opinion if you have an opportunity between agreeing to binding arbitration or mediation whereby a neutral third party simply listens to the dispute and helps the parties decide whether or not they can docHub an agreement on t