In arbitration, the parties choose one or three professionals to hear the case much like a judge or jury.
At the arbitration hearing, which is scheduled at a time and place convenient for all concerned, the claimant presents his/her case by calling witnesses and introducing documentary evidence. Witnesses are sworn and are subject to cross-examination. When the claimant has finished introducing evidence, the respondent does the same thing. The claimant has the opportunity for rebuttal. Then the parties present arguments as to why the arbitrators should rule in their favor.
The arbitrator(s) then render an "Award" which is the final decision, binding on app participants. Except under the most unusual circumstances, there is no right to appeal the award. The award may be enforced by a court.
While arbitration and litigation sound a lot alike, there are differences including:
In arbitration, the arbitrators are not bound to follow statutory or case law.
Arbitration is more informal than court.
Arbitration can be much quicker and less expensive than court.