What is "arbitration" in the legal context?

Arbitration refers to a legal process wherein disputes between parties are resolved by one or more arbitrators, who act as neutral third parties. This process is a form of alternative dispute resolution and is characterized by its binding nature, meaning that once the arbitrator makes a decision, the parties are obligated to adhere to it as if it were a court judgment.

The primary advantage of arbitration is that it often provides a quicker and less formal resolution compared to traditional court proceedings. Many contracts, especially in commercial settings, include arbitration clauses that require parties to resolve disputes through arbitration instead of litigation. This helps to reduce the backlog in courts and offers a more streamlined approach to conflict resolution.

The other options reflect different legal concepts that do not accurately define arbitration. For example, a court trial with a jury involves a legal proceeding where a judge and a jury hear the evidence and arguments before reaching a verdict, which is distinct from the arbitration process. Mediation is a different form of dispute resolution that focuses on facilitating dialogue and agreement between parties, but it is not binding unless both sides agree to the terms. Lastly, a legal defense pertains to arguments or strategies used in court to defend against charges or claims, which is unrelated to the arbitration process itself. Thus,