Arbitration is a method of resolving disputes outside of the traditional court system. In this process, a neutral third party, known as an arbitrator, is appointed to review the evidence and make a binding decision. This approach is often favored for its efficiency and confidentiality compared to litigation. The arbitration process typically involves both parties presenting their case to the arbitrator, who then issues a ruling. This ruling is usually final and enforceable, making arbitration a popular choice for resolving commercial disputes, labor issues, and international conflicts, as it can save time and resources for all involved.