Arbitration is essentially a paid private trial, in other words, a method to resolve disputes without going to court. Arbitration is a disputeresolution process that offers an alternative forum to the court system for the settling of legal claims.ADR is the common term for different ways of settling a dispute. ADR includes mediation, arbitration, neutral evaluation, settlement conferences. Class arbitration borrows from the principles behind what are called class actions in the court system. Although arbitration agreements mean that a case must be resolved through arbitration, not all agreements are enforceable.