Arbitration is a form of alternative dispute resolution (ADR) that is used to resolve conflicts outside of the courtroom. It is a process in which the disputing parties agree to submit their disagreement to one or more impartial third parties, known as arbitrators, for a binding decision. The arbitrators are selected by the parties or appointed by an institution that provides arbitration services. During arbitration, both parties have the opportunity to present evidence and arguments to the arbitrators, who then deliberate and make a decision, known as an award. The award is typically final and enforceable in a court of law, with limited opportunities for appeal. Arbitration is often chosen for its potential to provide a quicker, more private, and sometimes less expensive resolution to a dispute compared to traditional litigation. It is commonly used in commercial disputes, including those involving insurance contracts, where the parties have agreed to arbitration clauses within their agreements.
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