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Arbitration is different from mediation, another form of alternative dispute resolution, because an arbitrator makes a decision deciding the dispute while a mediator attempts to facilitate a settlement among the disputing parties. A mediator has no power to force a settlement.
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.