Arbitration is a form of private dispute resolution. Arbitration is a binding procedure. It is often "administered" by a private organization that maintains lists of available arbitrators and provides rules under which the arbitration will be conducted. Such organizations can also manage the arbitration in whole or in part. Parties often select arbitrators on the basis of substantive expertise.

At the end of the arbitration hearing, the arbitrator renders a decision, and that decision is final and binding, subject only to a very limited court review. Arbitration is a binding, adjudicatory process. In general the arbitrator is an impartial person chosen by the parties. The arbitrator reads briefs and documentary evidence, hears testimony, examines evidence and renders an opinion on liability and damages in the form of an "award of the arbitrator" after the hearing. Once confirmed by a court of appropriate jurisdiction, the award can be subsequently entered as a judgment.

Arbitration can take a number of different forms: contractual, high-low arbitration, baseball arbitration, mandatory arbitration, and others.