Arbitration and mediation are alternative dispute resolution methods used to resolve conflicts outside of court. In arbitration, a neutral third party, known as an arbitrator, listens to both sides and makes a binding decision. This process is often faster and less formal than traditional litigation. In mediation, a mediator facilitates communication between the parties to help them reach a mutually acceptable agreement. Unlike arbitration, the mediator does not make a decision; instead, they guide the discussion to encourage collaboration. Both methods aim to reduce the time and costs associated with legal disputes.