Explain "arbitration."

Arbitration is a method of resolving disputes outside the traditional court system. It involves the parties in conflict agreeing to submit their dispute to one or more impartial third parties, known as arbitrators, who hear the evidence and arguments presented by both sides. After reviewing the information, the arbitrators make a binding decision, which the parties are obligated to accept. This process is often seen as a quicker and more cost-effective alternative to litigation, as it can be less formal and offers more flexibility in terms of procedures and scheduling.

In many instances, arbitration clauses are included in contracts, requiring parties to resolve any disputes through arbitration rather than through court proceedings. This mechanism is especially common in commercial contracts and labor agreements, where parties may prefer a more specialized or private resolution process.

The other choices represent different concepts related to the legal system. Court trials involve formal litigation processes conducted in a courtroom with judges and juries, which contrasts with the private nature of arbitration. Appealing a court decision refers to seeking a higher court's review of a lower court's ruling, which is not part of the arbitration process. Lastly, negotiation is a separate method of resolving disputes through direct conversation between the parties, rather than an arbitration where a neutral third party decides the outcome.