What is arbitration primarily used for?

Arbitration is primarily used for dispute resolution. It is a process where a neutral third party, known as an arbitrator, hears the arguments and evidence from both sides involved in a disagreement and makes a binding decision. This method is often chosen to resolve conflicts outside of the court system, offering a more efficient and private way to address disputes, particularly in contractual disagreements, labor relations, and commercial issues.

Unlike other choices provided, which do not pertain to the handling of disputes or conflicts, arbitration specifically targets the resolution of disagreements between parties. This makes it a crucial tool in various fields, including business, where it can help avoid lengthy legal battles and foster more amicable resolutions.