What does the term "binding arbitration" imply for the parties involved?

The term "binding arbitration" signifies that the parties involved in the arbitration process must comply with the arbitrator's decision. This means that once the arbitrator has made a ruling, the decision is final and legally enforceable, and the parties are obligated to adhere to it.

Binding arbitration is designed to provide a resolution to disputes in a more expedient manner than traditional court proceedings, and it aims to promote finality and reduce the potential for drawn-out litigation. The enforceability of the arbitrator's decision is a key feature that distinguishes binding arbitration from non-binding arbitration, where the parties are not required to accept the arbitrator's outcome.

In contrast, options highlighting non-enforceability, the possibility of appealing the decision, or the voluntary nature of the process do not apply to binding arbitration. Once the parties agree to enter into binding arbitration, they relinquish their right to pursue relief through the court system based on that specific dispute, thus reinforcing the notion that compliance with the arbitrator's decision is mandatory.