The American Arbitration Association® ‘s (AAA) Non-Binding Arbitration Rules provides parties with streamlined procedures for arbitrations that result in awards that are advisory and non-binding in nature. The award is rendered by an arbitrator after hearing and considering arguments and evidence from the parties.

Is an arbitration legally binding?

While parties are not required to have an attorney to participate in arbitration, arbitration is a final, legally-binding process that may impact a party’s rights.

What makes an arbitration binding?

Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision. Arbitration takes the place of a trial before a judge or jury. … If a person signs a contract that has a mandatory, binding arbitration agreement, he or she gives up the right to go to court.