__Arbitration is more like trial than mediation.  The arbitrator is retained to hear both sides and then make a binding decision, as a judge or jury would do, but ideally to do so earlier in the litigation process and with less formality, time and money. 

The parties may present their case and leave all decision making to the arbitrator.  Or the parties and their counsel may set the arbitration up in one of several ways that will affect how the arbitrator’s decision will become the final decision between the parties.  For example, if the case will require a dollar award, the parties can select two numbers and require the arbitrator to select one or the other (sometimes called ‘Baseball Arbitration’); or the parties may agree in advance on a range that will define the limits of an arbitrator’s award.

Arbitration often is required in a contract between the parties as the agreed method of resolving disputes.  While dispute resolution clauses can vary and may include mediation and/or allow for an appeal to a court of an arbitrator’s award, most often the agreed arbitration process will produce a final, unappealable decision.