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Arbitration, a form of alternative dispute resolution (ADR), is a technique for the resolution of disputes outside the courts.he parties to a dispute refer it to arbitration by one or more persons (the arbitrators, arbiters or  arbitral tribunal ), and agree to be bound by the arbitration decision (the  award ).
by FreeAdvice staff. In the arbitration process one or more arbitrators hear evidence from the parties to a dispute and then issue an award that declares who gets what.In some instances, the arbitrator may also write an opinion explaining the reasoning that led to the award.The award and opinion cannot be reviewed by a court, and there is no appeal. Arbitration is a substitute for a trial and review of a trial courtâs decision by appellate courts. It is different from mediation.n some instances, the arbitrator may also write an opinion explaining the reasoning that led to the award. The award and opinion cannot be reviewed by a court, and there is no appeal. Arbitration is a substitute for a trial and review of a trial courtâs decision by appellate courts.