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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. Arbitration is a dispute resolution process in which the disputing parties present their case to a third party intermediary (or a panel of arbitrators) who examine all the evidence and then make a decision for the parties. This decision is usually binding.