Define "arbitration" in the legal context.

Arbitration, in the legal context, is defined as a method of resolving disputes through a binding decision made by an arbitrator. This process typically involves the parties to a dispute agreeing to submit their conflict to a neutral third party who will listen to both sides and then render a decision that is enforceable like a court judgment. The key features of arbitration include its binding nature, indicating that the decision of the arbitrator is final and can typically only be appealed in very limited circumstances. This method is often preferred for its efficiency and the privacy it affords to the parties compared to traditional litigation.

In contrast, mediation, which is voluntary and seeks to facilitate negotiation between parties, is not binding. Similarly, informal discussions between parties do not carry the authoritative weight of an arbitration decision. Lastly, court processes for criminal cases do not pertain to arbitration as they follow a different legal framework focused on criminal law, rather than dispute resolution between private parties.