What is the role of arbitration in dispute resolution?

Arbitration plays a significant role in dispute resolution as it involves a process where an impartial third party, known as an arbitrator, is appointed to hear both sides of a dispute and render a binding decision. Unlike mediation, where a mediator helps facilitate communication and negotiation between the parties without imposing a solution, arbitration is more formal and results in a decisive resolution. The arbitrator evaluates the evidence, considers the arguments presented, and issues an award that resolves the conflict, making arbitration a crucial mechanism when parties seek a final determination of their issues without the need for court intervention.

In contrast, negotiation refers to the direct discussions between the parties involved in which they aim to reach a mutually agreeable solution. A judge's role is entirely different as it pertains to judicial proceedings, where legal determinations are made in accordance with the law, rather than in a private arbitration setting. Lastly, the idea of arbitration without a third party misrepresents the concept, as the presence of an arbitrator is a defining characteristic of the arbitration process.