What is the primary characteristic of arbitration?

The primary characteristic of arbitration is that a neutral third party, known as an arbitrator, makes a binding decision regarding the dispute between the parties. This characteristic sets arbitration apart from other dispute resolution methods, such as mediation or negotiation, where the parties themselves seek a resolution. In arbitration, the arbitrator reviews the evidence and arguments presented by both sides and then renders a decision that the parties are obligated to follow. This binding nature of the arbitrator's decision often serves to provide a final resolution to the issues at hand, making it a preferred method for many parties seeking a definitive outcome without going through the court system.

The involvement of a jury is not a feature of arbitration, as arbitration is typically more formal than informal discussions, and relies heavily on the arbitrator's expertise and judgment. While parties may collaborate in mediation, arbitration does not allow them to decide the outcome together, as that responsibility rests solely with the arbitrator. Additionally, non-binding discussions would classify as mediation or negotiation rather than arbitration, where the decision rendered is authoritative and enforceable. Thus, the correct answer highlights the decisive role of a neutral arbitrator in resolving disputes through binding rulings.