What outcome can parties expect after an arbitration process?

The outcome of arbitration is that the resolution can be enforced legally. Arbitration is a formal process where disputing parties present their case to a neutral third party, the arbitrator, who makes a binding decision based on the merits of the case. This binding decision is recognized by law, which means that the parties are obligated to comply with the arbitrator's ruling. The legal enforceability of an arbitral award is a key characteristic that distinguishes arbitration from other forms of dispute resolution, like mediation.

In contrast, while negotiation may occur before or after the arbitration process, the nature of arbitration means that parties often do not have increased negotiating power as a direct result of the arbitration itself. Similarly, the arbitration decision is intended to be final and binding, which means that the process does not require further negotiations or review by a higher authority in most cases. Therefore, the legal enforceability of the resolution is a fundamental aspect of arbitration that underscores its role as a definitive means of resolving disputes.