Arbitration is the most traditional form of private dispute resolution. Arbitration is a binding procedure.Arbitration is a binding or non-binding process where an arbitrator, rather than a judge or jury, applies the law to the facts of the case and issues an award. Arbitration can be binding or nonbinding. Arbitration is a method of resolving disputes outside of court. California, one of the fastest growing international arbitration venues in the world, is home to many of the world's largest and most innovative companies.