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What is arbitration in simple words?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

What happens when you go to arbitration?

Arbitration is a dispute-resolution process in which the parties select a neutral third party to resolve their claims. Parties typically agree to arbitrate in order to avoid the time, expense, and complexity of litigation.

Is arbitration a good thing?

Arbitration tends to be less expensive than litigation because it typically involves fewer procedural hurdles and streamlined processes. Additionally, arbitration can be faster, often resolving disputes more quickly than court cases, which can drag on for years. Another advantage is confidentiality.

What does arbitration mean?

One of the alleged benefits of arbitration is that it costs less than litigation, but frequently this is not true for consumers and employees. Forced arbitration frequently costs more than taking a case to court and can cost thousands of dollars.

What does it mean to confirm an arbitration award?

Instead, if a party wins in the arbitration and the other party does not do what the award says, the winning party may go to court to confirm the arbitration award. Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction.