How Does Arbitration And Dispute Resolution Work: A Guide


When it comes to dispute resolution, we have a number of choices, which are enough to make us more confused. You may have heard from your business partner, colleagues, or any other family member about this. 

But the little thing is that you do not know precisely what it is. In order to choose the right one, you first need to develop proper knowledge about dispute resolution. You also need to read more about different types of dispute resolutions. 

But first, you need to have a basic idea. And any kind of basic idea about anything starts with knowing the definition or what that actually means. So, let’s start with what dispute resolution actually is. 

What Is Dispute Resolution?

In order to resolve a dispute, claim, or conflict, a number of processes can be used. Those number of processes are addressed by the term dispute resolution. Appropriate dispute resolution, ADR, or alternate dispute resolution are the other names of dispute resolution. 

In case you do not want to take the matter to court or do not want any organization to decide on the resolution, you can opt for dispute resolution. 

For any kind of dispute regarding environmental, consumer, personal injury, housing, business, employment, neighborhood, and family disputes, one can opt for the dispute resolution process.  

What Is Arbitration?

The procedure of submitting a dispute is called arbitration. And it is done by agreement of the different parties, to one or more than those arbitrators, who make the decision of bidding on the dispute. Instead of going to court, the parties go for a private dispute resolution in choosing arbitration. 

Types Of Dispute Resolution

Now, as you get the basic idea about what dispute resolution is, now is the time to know the different types of dispute resolution so that you can get the way how dispute resolution works along with arbitration. 


In order to help disputants come to a consensus on their own, the goal of mediation is for a neutral third party. Instead of imposing a solution, here, a professional mediator deals with all the conflicting sides in order to explore interests, which are underlying their positions.

It can really be effective in allowing both the parties to express their feelings along with totally exploring the parties’ grievances. Mediators can be really effective in helping to hammer out a suitable resolution, which is also nonbinding and voluntary.

Mediators can work with both parties together or separately.  


As I have mentioned earlier, in the case of arbitration, a third party plays the role of a judge. And the same person is responsible for resolving the specific dispute. The arbitrator initially goes through each side’s legal representation of the case and presents relevant pieces of evidence.

After that, the arbitrator renders a binding decision. Any aspects of the arbitration process can be negotiated virtually by the disputants. It simply includes the standards of evidence that will be used and also the presence of lawyers. 

Arbitrators usually hand down decisions, which are confidential and can not also be appealed. Just like mediation, arbitration is generally less expensive than litigation. 


This is the most familiar type of dispute resolution. In civil litigation, a defendant is typically involved. The person faces off in front of a plaintiff before either the judge or both a jury and a judge. 

The responsibility of weighing all the evidence and also making a ruling is totally upon the judge or the jury. The pieces of information then are conveyed in trials, and hearing not only enters but also stays on the public record. 

If the scenario involves lawyers, they typically dominate litigation. And during the pretrial period of preparation and discovery, this litigation ends up in a settlement agreement. 

Bottom Line

So, I hope from the above discussion you are now able to understand how dispute resolution or arbitration generally works. The main motto is to resolve a dispute without taking the dispute to the country or making it a lawsuit. 

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