Binding arbitration is a form of dispute resolution typically used when two parties are unable to reach an agreement.
It involves choosing an arbitrator, usually a neutral third-party such as a lawyer or retired judge, who listens to both sides and makes a final ruling.
This ruling, or award, is legally binding on both parties, meaning they must comply with the decision.
Binding Arbitration can be used for disputes ranging from contractual issues to intellectual property rights to financial matters.
It is often cheaper and faster than litigation, making it an attractive alternative when attempting to resolve a disagreement.