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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 ).
At its core, arbitration is a form of dispute resolution. Arbitration is the private, judicial determination of a dispute, by an independent third party. An arbitration hearing may involve the use of an individual arbitrator or a tribunal.