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alternative dispute resolution methods such as negotiation mediation and arbitration present disputing parties with alternatives to time-consuming and expensive litigation of these three arbitration is the most like a lawsuit but more streamlined and less expensive in an arbitration proceeding an impartial third party known as the arbitrator listens to the disputing parties and applies relevant laws to resolve the outstanding issues like a trial in a courtroom the parties make opening and closing arguments present witnesses and provide testimony in presenting their cases unlike a trial in a court room however arbitration relaxes litigation formalities such as the many restrictive evidentiary rules and procedural requirements arbitration proceedings have grown in popularity over recent decades people who would ordinarily be inclined to go to court to resolve disputes often discovered that an arbitration is an efficient cost-effective and flexible alternative to litigation once one side