Explain what arbitration is and why it might be a preferred choice regarding a legal problem

Arbitration is recognized in most states and involves a neutral third party that both sides have agreed will have the power to decide the outcome and render a binding decision. The arbitrator listens to statements from both sides, reads documents presented, reviews evidence, and proposes a compromise settlement. Arbitration is chosen because the process is less time consuming and less expensive than a suit and trial proceedings.