Which of the following is a key feature of arbitration as a dispute resolution method?

Arbitration is a widely recognized method of dispute resolution that is characterized by its ability to provide parties with a final and legally binding decision. This feature stems from the agreement between the parties to submit their disputes to an arbitrator, or a panel of arbitrators, who evaluate the evidence and make a ruling. This process is formalized in such a way that the decision made by the arbitrator is enforceable in a court of law, much like a judgment rendered by a judge.

The binding nature of arbitration makes it significantly different from other forms of dispute resolution, such as mediation, where the mediator facilitates negotiation but does not have the authority to impose a decision. In arbitration, once the arbitrator issues a decision (known as an award), the parties are typically required to comply with it, and this award generally cannot be appealed, save for very limited grounds.

While there are forms of arbitration that may be structured to be non-binding, the standard understanding of arbitration—especially in commercial contexts—is that it results in a legally binding determination. Additionally, arbitration does not incorporate jury involvement, which is unique to the court system, thereby further distinguishing arbitration from traditional litigation.

Thus, the essential feature of arbitration is that it culminates in a legally binding