What does binding arbitration imply?

Binding arbitration implies that disputes must be settled by an arbitrator. In this process, both parties involved in a dispute agree to submit their conflict to a neutral third party, the arbitrator, who will make a decision that is legally binding. This means that both parties are obligated to accept the arbitrator's ruling and cannot pursue the matter further in court.

Choosing this route can provide a quicker and often less costly resolution compared to traditional courtroom proceedings, as arbitration typically involves streamlined procedures. In a binding arbitration scenario, the decision reached cannot be appealed in most circumstances, which emphasizes the finality of the arbitrator's findings, thereby reinforcing that the dispute must indeed be settled this way.