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Arbitration is simply a method of resolving disputes that involves the two sides presenting their arguments to an arbitrator (usually a lawyer or retired judge) or panel of arbitrators. This arbitrator will ultimately decide who is right, who is wrong, and what to do about it. In effect, the arbitrator serves as judge and jury. This is usually done as a quick and quiet alternative to duking it out in court which for large corporations can be a lengthy, costly, and newsworthy affair.