Final answer:
Arbitration resolves disputes where the law may not have been broken. It is a private and less formal process conducted by a neutral third party.
Step-by-step explanation:
Arbitration resolves disputes where the law may not have been broken. It is a process where a neutral third party, called an arbitrator, helps the parties involved reach a resolution. Unlike litigation, which involves going to court, arbitration is a private and less formal process.
During arbitration, the arbitrator listens to both sides of the dispute and makes a binding decision based on the evidence and arguments presented. The decision is called an arbitral award, and it is legally enforceable. Arbitration can be a faster and more cost-effective way to resolve disputes without going through the court system.